Monday, 26 February

2023: Ghana bags US$1.06 billion from crude oil

Business
During the year, the PHF received substantial inflows, including US$521.87 million in the second half of 2023, slightly lower than the US$540.15 million in the first six months

In 2023, despite economic challenges, Ghana's Petroleum Holding Fund (PHF) received a total inflow of US$1.06 billion, a slight decrease from US$1.43 billion in 2022, as reported by the Bank of Ghana.

The first half of 2023 witnessed crude oil prices declining from US$84.97 per barrel to US$75.68 per barrel due to factors such as OPEC supply restrictions and concerns about global recession amidst China's slowing reopening pace.

The PHF serves as Ghana's designated public fund at the Bank of Ghana for receiving and disbursing petroleum revenue.

During the year, the PHF received substantial inflows, including US$521.87 million in the second half of 2023, slightly lower than the US$540.15 million in the first six months.

In comparison, the same period in 2022 saw higher receipts at US$696.82 million.

Key revenue streams for the PHF remained consistent, including lifting proceeds, surface rentals, interest income, and corporate taxes.

Crude oil liftings in the second half of 2023 generated US$319.74 million, with the Jubilee field contributing the most significant share.

The Ghana Heritage Fund (GHF) and Ghana Stabilization Fund (GSF) achieved positive returns in the first half of 2023. By the year-end, the GSF balance was US$190.4 million, while the GHF reached US$1.05 billion.

During the first six months of 2023, the PHF allotted US$466.87 million as petroleum revenue to beneficiaries, including the Ghana National Petroleum Corporation (GNPC) and the Annual Budget Funding Amount (ABFA). Other proceeds amounted to US$202.126 million.

A notable development was the withdrawal of US$106.5 million from the Ghana Stabilization Fund in the second half, indicating strategic reserve utilization for fiscal needs, surpassing the first-half withdrawal of US$83 million.

 

Despite market uncertainty, the GPFs' investment strategy yielded US$18.1 million in investment income in 2023, aligning with mandated guidelines for fund growth.

Source: ClassFMonline.com