Government receives second highest yearly petroleum revenue since 2010

The government last year received the second highest yearly petroleum revenue since oil production in the country began in 2010.

Data from the 2024 Annual Report of the Public Interest and Accountability Committee (PIAC) showed that petroleum receipts for 2024 amounted to $1.36 billion, compared to the $1.1 billion recorded in 2023.

The 2024 rise in revenue, which was mainly due to an increase in pricing on the world market, also represents the second highest annual petroleum receipts since inception, with 2022 being the highest year ($1.42 billion).

In spite of the significant increase in revenue, crude oil production also declined for the fifth consecutive year in 2024.

Production dropped from 71.44 million barrels in 2019 to 48.25 million barrels in 2024, representing a five-year average decline of 7.4 per cent.

Presentation

Presenting the 2024 PIAC Annual Report in Accra yesterday, the Chairman of the PIAC, Constantine Kudzedzi, said the 2024’s $1.36 billion accrued to the Petroleum Holding Fund (PHF) was from royalties, carried and participating interest (CAPI), corporate income taxes (CIT), surface rentals, income earned on the PHF, and other income, compared to $1.06 billion in 2023.

He said that represented a 27.81 per cent increase from the amount recorded in 2023.

Mr Kudzedzi explained that the increase in revenue could be attributed to international crude oil prices, which were higher than estimated prices due to the Russia-Ukraine war.

“The increase in revenues can also be largely attributed to increased PHF income, CIT and CAPI revenue streams during the period under review,” he said.

Oil liftings

The chairman stated that receipts from crude oil liftings (CAPI and royalties) amounted to $843.52 million in 2024 compared to $690.28 million in 2023, representing an increase of 22.2 per cent.

He said six liftings (75th to the 80th) were made from the Jubilee Field in 2024, yielding $475.45 million in receipts, just as six liftings were recorded in 2023, yielding $475.20 million.

Mr Kudzedzi said the GNPC Explorco, a subsidiary of Ghana National Petroleum Corporation (GNPC), made two liftings during the year under review, amounting to $145.68 million as compared to two parcels in 2023, yielding $143.32 million.

He said the proceeds from the second lifting, which occurred in December 2024, would be received in January 2025.

Also, Mr Kudzedzi said a single lifting (24th) was made in 2024 compared to two liftings in 2023.

Total receipts for 2024 amounted to $150.43 million, which includes the 23rd lifting in December 2023, whose proceeds were realised in January 2024. Total proceeds for 2023 yielded $73.05 million.

“There were two liftings on the Sankofa Gye-Nyame Field in 2024 compared to three liftings in 2023.

Total receipts from liftings in 2024 amounted to $217.65 million compared to $142.04 million received in 2023. Proceeds from the 14th lifting in December 2023 were realised in January 2024.

“For the year 2024, a total amount of $145.68 million was made from GNPC Explorco’s liftings in the Jubilee field.

However, the revenue from these liftings was not paid into the PHF for 2024.

JOHL received $272.65 million from its liftings in 2022,” he said.

He explained that this brought the total lifting proceeds not paid into the PHF since 2022 to $488.79 million.

Recommendation

Henceforth, Mr Kudzedzi stated that the government should expedite action to attract investments into Ghana’s upstream petroleum industry.

That, he said, would help deal with the declining crude oil production.

He added that Parliament should also ensure that the Ministry of Energy and its allied agencies increase efforts to secure investments in Ghana’s upstream petroleum industry.

The report

The launch of the report fulfils the requirement of Section 56 of the Petroleum Revenue Management Act (PRMA), 2011 (Act 815), as amended.

The committee is expected to release statutory reports to inform Ghanaians and stakeholders about the management and use of petroleum revenues, fulfilling its oversight mandate.

The 2024 annual report, the 27th since its inception, covers petroleum revenue management from January to December 2024, including production data, revenue allocations and fund management.

Chaired by a former chairman of PIAC, Major Daniel Sowa Ablorh-Quarcoo (retd), the launch event was attended by the Chair of the Public Affairs and Communications Sub-Committee at PIAC and Nkosuohene of Pakro, Nana Kwaku Dei; the President of the Ghana Journalists Association, Albert Kwabena Dwumfour; the Co-Chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), Dr Steve Manteaw; and other representatives from the petroleum sector and civil society organisations.