Oil and gas revenue will come in small portions in the beginning – Dr. Duffuor

In the midst of higher expectations from Ghana’s oil and gas, to turn the country’s economy to a better one, Ghanaians have been told that revenue from the sector in the early years would yield in small portions.

Presenting the 2011 Budget in Parliament Thursday November 18, 2010, the Finance Minister Dr. Kwabena Duffuor said, although the nation will reap some benefits from oil and gas revenue in 2011, the flow of the revenue will be in small portions.

He said, “Although the nation will begin to reap the benefits of the oil find in terms of revenue in 2011, I wish to draw attention to the fact that the flow of revenue from oil in these early years will be in small portions” adding that the revenue from 2011 fiscal year will only form 6% of the nation’s total revenue.

Dr. Duffuor therefore expects Ghanaians to be moderate in their expectations from the oil and advised that attention should rather be on the non-oil sector of the economy which has been the backbone of the economy.

The Finance minister also highlighted some of the major achievements chalked by the government from 2009 to date.

He said gross international reserves of US$3,973.0 million at the end of October 2010 have exceeded three months of import cover compared with reserves of US$2,036.2 million at end December 2008 which could barely cover 2 months of import.

He added that the Ghana cedi has strengthened and appreciated by 0.1 percent, 2.2 % and 5.4 % against the US dollar, pound sterling and euro respectively as at the end of September, 2010.

The Minister therefore, assured Ghanaians that the government is on course to fulfill the better Ghana agenda.

Commercial production of oil in Ghana is expected in early December 2010, According to Tullow Oil, the major stakeholders in Ghana’s Jubilee oil field. The field is estimated to contain 1.5 billon barrels of oil and has 17 wells.

By Ekow Quandzie (Intern)