Gov’t targets US$1.1bn petroleum revenue for 2019

Government has programmed earning US$1.1billion as petroleum revenues for next year.

The projected amount is made up of US$227.10million from Royalties; US$602.80million from the Carried and Participating Interest; US$249.60million in Corporate Income Tax; and US$1.10million from Surface Rentals.

Of this amount, he said, US$404.90million will be ceded to the NOC for its Equity Financing Cost, and share of the Net Carried and Participating Interest at US$84.80million; while US$473million will be allocated to the Annual Budget Funding Amount (ABFA).

The Ghana Petroleum Funds (GPFs) are also expected to receive US$202.70million. The GPFs’ receipts will be distributed between the Ghana Stabilisation Fund – US$141.90million; and the Ghana Heritage Fund – US$60.80million.

This was revealed by the Minister for Finance, Ken Ofori-Atta, during his presentation of the 2019 Budget themed A Stronger Economy for Jobs and Prosperity’ to Parliament yesterday.

Meanwhile, the Benchmark crude oil price for 2019 has been projected at US$66.76 per barrel in line with the Petroleum Revenue Management Act (Amendment), 2015, (PRMA, Act 893).

The gas price for 2019 is meanwhile projected at US$3.99 per MMBtu. The 2019 Benchmark Revenue crude oil output is 63.4 million barrels (173,764 barrels of oil per day).

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The Finance Ministry requested permission to exclude gas revenues to the tune of US$181.80million from the projected petroleum revenues for 2019, “as we devise ways of getting Volta River Authority (VRA) to pay for the gas supplied it by Ghana Gas”.

As a measure to minimise the amount of gas produced in the SGN Field for power production, he also said government has decided to postpone extracting its share of the gas resource – Royalties, and Carried and Participating Interest (CAPI) – until such time that off-takers are found to consume the gas in-year.

“These are prudential measures and should not be misconstrued to mean that the ministry will not be pursuing the VRA’s gas bills, as required by the PRMA.”

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