Ghana eyes $768m revenue from oil sale in 2012 as country misses 2011 target

Ghana is targeting a total revenue of GH¢1.23 billion ($768 million) from the sale of crude oil in the 2012 fiscal year, according to government’s 2012 budget presented to Parliament November 16, 2011.

This is based on an estimated average oil price of $90.00 per barrel and production of 90,000 barrels per day, text of the budget presented by Finance and Economic Planning Minister Dr. Kwabena Duffour stated.

“…the total revenue from crude oil sales in 2012 fiscal year is projected at GH¢1,239.82 million based on an estimated average oil price of $90.00 per barrel and production of 90,000 barrels per day,” said Dr Duffour.

Dr Duffour gave the following breakdown of how the monies would be accrued:

– Corporate income taxes – GH¢384.11 million
– Royalties – GH¢236.87 million
– Carried and Participation Interest – GH¢618.84 million

Government, when seeking approval for a supplementary expenditure for 2011 in Parliament Thursday July 14, 2011, indicated that it was expecting to earn revenue of GH¢1,250.8 million from oil in 2011 based on the new oil price assumption of $100 per barrel as well as the revised estimated average oil production of 84,737 barrels per day as well as a new exchange rate assumption.

But partners at the Jubilee oil fields such as Kosmos Energy and Tullow have revised downwards oil output for 2011.

According to Tullow, November 9, 2011, production for 2011 will average 79,000 to 81,000 barrels of oil per day, down from the 82,000 to 84,000 barrels forecast in August 2011.

Kosmos Energy, in its 2011 third-quarter results released November 10, 2011 said the Jubilee Phase 1 wells are producing about 80,000 barrels of oil per day.

This means that government’s targeted revenue for 2011 from oil sales cannot be met.

By Ekow Quandzie