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Government Rakes in $1.06 Billion From Oil Revenue – PIAC Report

The Carried and Participating Interest (CAPI) amounted to US$ 470.67M, Royalties amounted to US$ 219.61M, Corporate Income Tax (CIT) also amounted to US$ 265.20M, Petroleum Holding Fund (PHF) Income yielded US$ 6.07M, and Surface Rentals amounted to US$ 0.77M, making a total of US$ 1.06 Billion.

The Public Interest and Accountability Committee (PIAC) 2023 annual report on the collection, management, and utilization of Ghana’s petroleum revenues shows some significant revenue accrued from Oil.

According to the report, the total revenue from the various petroleum revenue streams in 2023 amounted to US$1.06 billion, while the total revenue from the Carried and Participating Interest (CAPI) constituted 44.3 percent making US$ 470,637,746.05. 

“CAPI are two (2) forms of state participation that effectively capture the State’s share of economic rents from petroleum projects. The revenue derived from CAPI in 2023 constituted 44.3 percent (US$470,673,746.05) of total petroleum revenues as compared to US$733,845,523.27 in 2022. This represents about a 36 percent decrease in CAPI over that of 2022,” an excerpt of the report read.

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The report added that both Surface Rental and the Petroleum Holding Fund (PHF) yielded a revenue increase as compared to 2022.

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“Surface Rental payments received in 2023 totaled US$771,200.48 compared with US$687,759.16 for 2022, indicating a 12 percent increase. Interest on the PHF yielded US$6,072,151.40 in 2023 as against US$2,382,369.82 in 2022,” it stated. 

Royalties are early and dependable sources of revenues for the State as it is a charge on gross production. Total revenue from Royalties for the three (3) Fields wasUS$219,608,784.84 in 2023 compared to US 302,954,860.69 in 2022, representing a 27.5 percent decrease. 

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Also, Corporate Income Tax (CIT) is currently charged at a rate of 35 percent on the profits of the International Oil Companies (IOCs). The total CIT received from the three (3) fields in 2023 stood at US$365,197,536.35, representing a 6 percent decrease from that of 2022 (US$388,889,564.00).

The report further highlighted a significant decline in crude oil production, marking the fourth consecutive year of reduced output.

According to the report, the country’s crude oil production dropped from a peak of 71.44 million barrels in 2019 to 48.25 million barrels in 2023.

“Crude oil production declined for the fourth consecutive year in 2023. Production dropped from a high of 71.44 million barrels in 2019 to 48.25 million barrels in 2023 representing an annual average decline of 9.2 percent,” portions of the statement reads.

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