A new report by the Bank of Ghana shows that the country received a total of 310.14 million dollars into Ghana’s Petroleum Holding Fund (PHF) for the first half of 2020.
Compared to same period in 2019, the figure dropped by $124. 34 million dollars as the figure for last year was $434.48 million dollars.
The Petroleum Revenue Management Act, which established the Petroleum Holding Fund, requires the Bank of Ghana to report on the performance and activities of the Fund to promote transparency in the oil and gas sector.
According to the Report, the total amount of $310.14 million dollars received into the Petroleum Holding Fund, comprised the lifting proceeds of the Ghana Group, surface rentals, Petroleum Holding Fund income and corporate income tax.
Total petroleum revenue distributed was $322.57 million dollars. The Ghana National Petroleum Corporation received $80.41 million dollars. The Annual Budget Funding Amount (ABFA) received $169.50 million dollars, whiles the Ghana Stabilization Fund and the Ghana Heritage Fund received an allocation of US$50.85 million dollars and US$21.79 million dollars respectively between January and June this year.
The Ghana Heritage Fund and Ghana Stabilization Fund total return year to date was 5.28% and 0.39% respectively.
Realized income on the Ghana Petroleum Funds in the first half of the year was $8.57 million dollars, as compared to the first half of 2019 total net realized income of $11.20 million.
The Ghana Stabilization Fund and Ghana Heritage Fund accumulated reserves were $133.34 million and $608.54 million respectively.
On its outlook for the next half of 2020, the Bank of Ghana said even though it is optimistic about a rebound of Ghana’s economy, global projections show a negative growth rate due to the COVID-19 pandemic.
Making up for oil revenue shortfall a huge task for Ghana – Kweku Awotwi
The immediate past Managing Director of Tullow Ghana and Executive Vice President of Tullow Oil plc., Kweku Awotwi, has said government would have to work really hard to make up for the revenue shortfalls created by fallen crude oil prices.
The outbreak of the novel coronavirus has led to a limited demand for crude globally.
As a result, prices have also fallen from almost 60 dollars to nearly 30 dollars a barrel thereby affecting global economic growth and creating excess oil supply.
Government had projected to receive $1.567 billion from oil revenues, anchored on a price prediction of $62.61 per barrel.
However, the price on the international market, which was $66.25 per barrel at the start of the New Year, has fallen to $40 per barrel as of August 1, 2020, from an initial drop of almost $30 per barrel, largely due to low demand and a price war between Saudi Arabia and Russia at a point.