Petroleum Fund records US$1.06 billion inflow in 2023

The Petroleum Holding Fund (PHF) recorded a total inflow of US$1.06 billion in 2023 despite economic headwinds.

This figure represents a slight decrease of US$0.37 billion from 2022’s US$1.43 billion, according to the Bank of Ghana’s latest report. H1 2023, ended with crude oil prices dropping from the end H2 2022 price of US$84.97 per barrel to US$75.68 per barrel, amidst supply restrictions by the Organization of the Petroleum Exporting Countries (OPEC), the step-down in the pace of China’s reopening and concerns of a global recession.

The PHF is the designated public fund at the Bank of Ghana to receive and disburse petroleum revenue due the Republic of Ghana.

The Fund saw substantial inflows of US$521.87 million in the second half of 2023, marginally lower than the US$540.15 million received in the first six months. For context, the comparable period in 2022 witnessed significantly higher receipts of US$696.82 million.

The primary revenue streams funding the PHF remain consistent, including lifting proceeds, surface rentals, interest income, and corporate taxes.

During the second half of 2023, Ghana’s crude oil liftings generated US$319.74 million from the Jubilee, Sankofa Gye Nyame (SGN) and Tweneboa Enyenra Ntomme (TEN) fields. The Jubilee field provided the most significant contributions with three liftings totaling approximately US$251.41 million. SGN liftings followed at US$68.33 million.

In the first half of 2023, the Ghana Heritage Fund (GHF) and Ghana Stabilization Fund (GSF) achieved total returns of 1.79 percent and 2.07 percent respectively. Additionally, realized income across the Ghana Petroleum Funds (GPFs) reached US$15.70 million over this period. By the end of 2023, the GSF balance sat at US$190.4 million while the GHF reached US$1.05 billion.

The PHF received US$540.15 million in total during the first six months of 2023. Of this, US$466.87 million was allotted as petroleum revenue to key beneficiaries. These included US$125.71 million to the Ghana National Petroleum Corporation (GNPC), US$238.81 million as the Annual Budget Funding Amount (ABFA), and US$71.64 million and US$30.70 million deposited into the GSF and GHF correspondingly.

Other oil-related proceeds, including corporate taxes (US$198.69 million), surface rentals (US$0.112 million) and interest income (US$3.32 million) amounted to US$202.126 million. Following allotments, the GHF and GSF received US$68.5 million and US$159.7 million respectively out of the US$228.2 million allocated.

A significant second-half development was the withdrawal of US$106.5 million from the Ghana Stabilization Fund, indicating strategic reserve utilization for fiscal needs. This outstrips the US$83 million withdrawal seen in the first half of 2023.

The GPFs’ investment strategy continued to prove prudent, yielding US$18.1 million in investment income amid market uncertainty in 2023’s latter half. This aligns with mandated guidelines, upholding fund growth.