PIAC briefs Western and Central Regions on oil revenue

The Public Interest and Accountability Committee (PIAC), has held a day’s forum to brief residents in the Western and Central Regions on 10 years of the management and use of petroleum revenues.

PIAC is a statutory committee established under section 56 of the Petroleum Revenue Management Act 2011 (Act 815) to monitor and evaluate compliance in the management and use of petroleum revenues and investments per the provisions of the Act.

Prof Kwame Adom-Frimpong, Chairman of PIAC who made a presentation on the journey so far mentioned the share of liftings by partners of the Jubilee Field as at 2011 -2018 as Tullow (33.72%), Anadarko & Petro SA (25.33%), Kosmos (23.04%) and the Ghana Group (17.9%).

The share liftings by partners of the TEN Field as at 2016 -2018 was Tullow (44.90%), Anadarko & Petro SA (20.11%), Kosmos (16.23%) and the Ghana Group (18.76%) whereas that of partners of the SGN Field as at 2017 -2018 was ENI (47.32%), Vitol (45.79%) and the Ghana Group (6.89%).

Meanwhile, the total crude oil produced from 2010 – 2018 stood at 315,021,308 bbls with the year 2018 recording the highest with 62,135,435 bbls while the Annual Petroleum Receipts from 2011 -2018 stood at US$ 5.01 billion with 2014 recording the highest (978.01 million).

He disclosed the sources of petroleum revenue as fees from surface rentals calculated as $30-100 per sq.km, fees from royalties (forms 5-12.5%), Corporate Income Tax of 35%, fees from carried and participating interest (15% min.) and other fees and bonuses.

Touching on the distribution of petroleum revenue from 2011 – 2018, Prof Adom-Frimpong hinted that a total of $5,013.41 million has so far been released with the Annual Budget Funding Amount (ABFA) receiving $1,931.70 million representing 38.5% of the total amount distributed.

The Ghana National Petroleum Commission (GNPC) received $1,544.71 million representing 30.8% while the Ghana Stabilization Fund (GSF) had $1,082.26 million representing 21.6% and Ghana Heritage Fund receiving $454.74 million representing 9.1%.

Meanwhile, the reserves of the Ghana Petroleum Funds (GPF) as at 2011 – 2018 stood at US$ 485.17 million for the Ghana Heritage Fund and US$ 381.20 million for that of the Ghana Stabilization Fund.

Prof Adom-Frimpong mentioned amendment of PRMA to vary benchmark elements, regular tax audits on IOCs by the GRA, increase in surface rentals payments, influence on Free

Senior High School policy and acquisition of loss of production insurance (LOPI) by the GNPC as some key positive impacts made by the PIAC.

Osabarima Kwaw Entsie II, Omanhene of Wassa Mpohor Traditional Area who chaired the forum urged persons appointed to lead initiatives and execute projects with the oil money to be truthful, transparent and accountable in their dealings.

He charged the Government to focus on taking more legacy projects to benefit posterity and use some of the oil money to put up a long term plan for the country’s developmental drive.

Western Regional Minister, Kwabena Okyere Darko-Mensah implored that projects made under the Fund should have the embossment of the Fund to enable the citizens to follow what has come out of the funds and appreciate it.

He also urged the PIAC to make its website more accessible with up-to-date information while providing audio plug-ins that can be accessed in other Ghanaian languages to enable majority of the indigenous people the opportunity of being informed.

Source: https://newsghana.com.gh/piac-briefs-western-and-central-regions-on-oil-revenue/