2021 petroleum revenue projections pegged at US$885.7 million

The government is hoping to realize an approximately US$886 million as petroleum revenue for 2021.

This is made up of Royalties of US$201.0 million, Carried and Participating Interest of US$524.9 million, Corporate Income Tax of US$158.5 million and Surface Rentals of US$1.30 million.

In accordance with the Petroleum Revenue Management Act (PRMA), the government has proposed to allocate US$283.00 million to Ghana National Petroleum Corporation (GNPC) for its Equity Financing Cost of US$179.33 million and share of the net Carried and Participating Interest of US$103.67 million.

Additionally, 70 per cent of the Benchmark Revenue of US$602.70 million, which is US$421.89 million, will be set aside for the Annual Budget Funding Amount (ABFA).

The Ghana Petroleum Fund will receive US$180.81 million, being 30 per cent of the Benchmark revenue. Out of this amount US$126.57 million will be allocated to the Ghana Stabilisation Fund and US$54.24 million to the Ghana Heritage Fund.

Presenting the 2021 budget on behalf of the Finance Minister, Majority Leader and Minister of Parliamentary Affairs, Mr. Osei Kyei Mensah Bosnu, disclosed that a total crude oil production of 66.9 million barrels was recorded for 2020, as against 71.4 million barrels realized in 2019.

“As of December 2020, GNPC had lifted twelve parcels of crude oil on behalf of the State and transported 88,418.9 million standard cubic feet of gas to the Ghana National Gas Company (GNGC).”

According to him, total petroleum receipts as at end-December 2020 stood at US$666.4 million, equivalent to GH¢3.8 billion, compared with the receipts of US$937.6 million, equivalent to GH¢4.9 billion recorded in the same period in 2019.

“These receipts were allocated based on the provisions of the PRMA (as amended). In particular, the GNPC was allocated a total of US$198.6 million, made up of Equity Financing Cost of US$154.8 million and its share of the net Carried and Participating Interest of US$43.8 million.”

ABFA received a total of US$273.4 million while the GPFs received US$166.6 million. The Petroleum Funds, he said,” were distributed to the Ghana Stabilisation Fund (GSF) and the Ghana Heritage Fund (GHF) in the ratio of Seven is to Three, consistent with the PRMA. Thus, the GSF received US$116.6 million while the GHF received US$49.9 million.”