Oil revenue declines to $540 million in first half of 2023 – BoG report

Petroleum receipts in the first of the 2023 showed that Ghana earned a total of $540 million according to the Petroleum Holding Fund report released by the Bank of Ghana.

The figure represents a decline compared to the US$731 million recorded during the same period in 2022.

According to the semi-annual report, Ghana witnessed a shortfall of US$191 million (about 26% less) compared to the earnings during the first six months of 2022.

In terms of proceeds from oil liftings, Ghana earned $370 million while corporate tax amounted to $166 million, and surface rental reached $3 million.

In the same period under review, the BoG report outlined how the petroleum revenue was distributed as follows; the Ghana Stabilization Fund received $71 million while the Ghana Heritage Fund received $30 million, totaling about $101 million.

The release of the report by the Central Bank is in accordance with section 28 of the petroleum revenue management act, 2011 (Act 815), which outlines details of Ghana’s crude oil liftings and the allocation to the Ghana Petroleum Funds.

The Bank of Ghana, as per the law, is laid with the sole responsibility for receiving and disbursing petroleum revenues for the country.

In view of this, not more 70 percent of the benchmark revenue shall be paid into the Annual Budget Funding Amount, while not less than 30 percent is allocated to the Ghana Petroleum Funds.

Among the funds distributed to the Ghana Petroleum Funds, the Ghana Heritage Fund is expected to receive not less than 30 percent, while the remaining funds are transferred into the Ghana Stabilization Fund.

MA/NOQ