The Public Interest and Accountability Committee (PIAC) has published its second semi-annual report on petroleum revenues for the year 2012. The report which was due to be published in December 2012 suffered some delays due to lack of funds to the committee to run operations.
The purpose of this report is to give an independent assessment of the Management and use of Petroleum revenues and some of the major findings of the report are as follows: Monthly production declined from 2.11 million barrels in January to 1.77 million barrels in June. The average daily production during the period was 62,985 bopd; this falls short of the 90,000 bopd used in the estimation of the Benchmark Revenue for the 2012 financial year. The share of crude oil production lifted by the Ghana Group from the Jubilee field was consistent with the sharing ratio of fiscal regime governing the Jubilee operations. The report said that the proportion of crude oil lifted in the first half of 2012 was equivalent to 25.45% of production. This is about 7.5% higher than Ghana’s share of petroleum produced during the period because it includes the shortfall of 649, 138 barrels from 2011 that spilled over into 2012 lifting.
According to the report, in the first half of 2012 a total quantity of 2,989,367 barrels was exported by the Ghana Group with a net value of US$326,620,009.43. The total amount of US$327,172,427.15 reported by the Government as petroleum receipts in the first half of the year reflects the true state of affairs. This includes revenues from Jubilee operations, Saltpond operations and surface rentals.
The committee also documented the following recommendations “We reiterate our recommendation in the Annual report published in May, 2012 regarding the methodology for determining the Benchmark Revenue. It is quite obvious that once again the inclusion of corporate taxes in the revenue for 2012, has led to an over estimation and a distortion in the amount of the petroleum funds available for appropriation.”
It also added that the Ministry of Finance and Economic Planning should ensure that all oil companies operating under license are made to pay their relevant surface rental charges into the Petroleum Holding Funds without further delay.
Read the full PIAC report here