GNPC lifts 3.96 million barrels of crude oil in first five months of 2018

The Ghana National Petroleum Corporation (GNPC) has lifted four parcels of crude oil on behalf of the State in the first five months of 2018, compared with three liftings in 2017.

This involved 3.96 million barrels of crude oil, compared with 2.89 million barrels in the same period in 2017.

Mr Ken Ofori-Atta, Minister for Finance, said this when he presented the 2018 Mid-year Budget Review to Parliament in Accra on Thursday.

He said a total of 8,881.38 million standard cubic feet of gas was delivered to Ghana National Gas Company (GNGC) in the first five months of 2018, compared with 8,782.20 million standard cubic feet in the same period in 2017.

He said, however, in terms of lifting proceeds, the volumes covered five liftings, with the 41st Jubilee and 5th TEN liftings, which were carried out in December 2017 and paid for in January 2018, adding to the number.

“This makes it a total of five liftings, same as 2017, involving, 4.96 million barrels, compared with 4.87 million barrels in 2017,” he said.

The Minister said a total of US$313.34 million accrued from the five parcels of crude oil liftings in January-May 2018, compared with US$249.81 million in the same period in 2017.

Mr Ofori-Atta said total petroleum receipts for January-May 2018 was US$372.30 million, adding that there were no gas receipts in the referenced period due to the Volta River Authority's non-payment for gas supplied it by the GNGC.

“However, the State received US$57.96 million in Corporate Income Taxes from the partners,” he said.

On the outflows between January-May, 2018, he said the Petroleum Revenue Management Act (PRMA) required that not more than 70 percent of government's net petroleum receipts was designated as Annual Budget Funding Amount (ABFA) and not less than 30 percent designated as Ghana Petroleum Funds.

He said out of the amount transferred into the Ghana Petroleum Funds (GPF) and the Ghana Heritage Fund (GHFs) received not less than 30 percent, with the rest transferred into the Ghana Stabilisation Fund.

He said the January-May, 2018 petroleum receipts were allocated based on the provisions of the PRMA, as amended and total revenue distributed was US$373.30 million, compared with US$277.79 million in the analogous period in 2017.

Of this amount, GNPC (the NOC) was allocated a total of US$94.26 million, compared with US$90.90 million in 2017.

He said GNPC's 2018 transfers comprised Equity Financing Cost (US$56.26 million) and its share of the net Carried and Participating Interest (US$38.00 million), compared with Equity Financing Cost of US$51.81 million and a net Carried and Participating Interest of US$39.10 million in 2017.

“A total of US$160.48 million was transferred into the GPFs in January- May 2018, compared with US$102.16 million in 2017. Out of the amount transferred in the period, the GHF received US$48.15 million, compared with US$30.65 million in the same period in 2017, while the GSF received US$112.34 million, compared with US$71.51 million in the same period in 2017,” he added.

He said the total amount transferred in the first half of 2018 from petroleum liftings and related proceeds to the ABFA was US$117.55 million, compared with US$84.73 million in the same period in 2017.