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PIAC detects wrong figures from Saltpond oil fields

  • SOURCE: | Editor
  • oil-dropsReports on crude oil production from the Saltpond oil fields are full of discrepancies, the 2014 report of the Public Interest and Accountability Committee has said.

    While the company operating the field , the Saltpond Offshore Producing Company Limited (SOPCL) reported a marginal increase , figures from  the Ministry of Finance and the Ghana National Petroleum Corporation (GNPC) indicated a decline in production in 2014.

    The SOPCL reported that a total of 79,602 barrels of oil was produced from the Saltpond Field in 2014 compared to 76, 995 barrels produced in 2013  whiles the Ministry of Finance and GNPC indicated that the Saltpond field produced 95,093 barrels of oil.

    The MOF / GNPC figures showed that there was  9.5 percent year-on-year decline in production when compared to the 2013 production output of 105,040 barrels.

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    The PIAC , which has oversight responsibility for the management of the country’s petroleum resource , therefore , recommended that the institutions involved should work to resolve the discrepancies in lifting figures from the Saltpond field.

    According to the PIAC discrepancies in the lifting figures did not give a true performance state of the oil producing field , which is located about 65 miles west of Accra , therefore the Government was not able to determine the actual royalties due.

    Similarly , the lifting figures from the SOPCL and MOF/GNPC sources differed with SOPCL reporting increment in lifting whiles MOF/GNPC indicated otherwise ”the report said.

    The committee also recommended a critical appraisal of the continuous operation of the field against the background of low crude oil prices. PIAC said it was not commercially sensible to continue oil production has been taking place since the 1970’s because it will be difficult for the company to meet its expenses , let alone declare profit.

    In 2014 , all the major components of petroleum revenue exceeded their  forecasts with the exception of royalties  from the Saltpond Fields
    The field’s revenue fell short of its target by 57 percent .In case of gas receipts , no payment were received according to the report.
    Out of the US $192.66 million that was received in 2014 in royalties , payments from the Saltpond field accounted for 0.08 percent , with much of the money coming from Jubilee Field .
    The report also showed that royalties from Saltpond decline by 43 percent dropping from US$ 217, 214 in 2013 to US $151,986 in 2014.
    ALLOCATIONS OF REVENUES
    As at the end of year 2014 nearly US$3 billion has accrued to the state as petroleum revenues since first i 2010.
    In 2014 , however, a total of US$ 978.02 million accrued to the government  and this was distributed between the GNPC (18.48 Percent ) Annual  Budget funding Amount (ABFA – 51.31 per cent ) and the  Ghana Petroleum  Funds (GPF’s- 48.69 percent ).
    The Allocations to the ABFA in 2014 was distributed to only three priority areas instead of the usual four. These were expenditure and amortisation of loans (GHC 215.69 million ) and agriculture modernisation (GHC170.62 million)
    No allocation was made to the capacity building priority area in 2014 because planned expenditure was contingent upon the CDB -related small and Medium Enterprise (SME) Projects incubation facility , which did not take off, the reported said.
    Source : Daily Graphic

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