Ghana’s oil revenue drops to US$540m in first half of 2023

Ghana has recorded a total of US$540 million in petroleum receipts during the first half of 2023, as reported by the Petroleum Holding Fund report released by the Bank of Ghana, which provides insights into the Fund’s performance.

However, this amount represents a decrease compared to the US$731 million recorded during the same period in 2022.

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

According to the data from the semiannual report by the Bank of Ghana, there was a shortfall of US$191 million (about 26% less) compared to the earnings during the first six months of 2022.

The total petroleum revenue receipts consist of proceeds from oil liftings, Corporate Tax, Surface Rental, as well as interest on the Petroleum Fund account.

For the first year ending June 30, 2023, proceeds from oil liftings amounted to $370 million, corporate tax contributed $166 million, and surface rental totalled $3 million.

During the same period under review, the petroleum revenue distributed is as follows: the Ghana Stabilization Fund received $71 million, and the Ghana Heritage Fund received $30 million, totalling about $101 million.

As per the law, the Bank of Ghana is responsible for receiving and disbursing petroleum revenue for the country.

Additionally, not more than 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.

Out of the transferable funds into the Petroleum Funds, the Ghana Heritage Fund receives not less than 30 percent, with the remaining amount transferred into the Ghana Stabilization Fund.