Ghana targets US$700m oil revenue in 2019

Ghana is set to record its fourth highest oil revenue ever this year, in its history of oil production.

With 2019 second quarter collection already standing at US$363.73 million, it is forecasted that proceeds by the end of year, will reach US$700 million to make it the fourth highest in its nine year production history. This indicates potential that the hitherto fluctuating fortunes of the country with regards to oil revenues will now give way to consistent, indeed rising, revenues.

So far, the country has made over US$5 billion in oil revenue since production began in 2011, with earnings in 2014 being the highest so far.

In 2014, the country raked in its highest revenue to date of US$978.01 million, with proceeds in 2018 totaling US$977.11 million being the second highest.

In 2013, the country recorded its third highest revenue of US$846.56 million. Conversely, 2015 and 2017 ranked among the lowest three revenue generating years at US$387.83 million and US$389.57 million respectively.

In 2016, US$229.04 million was recorded as the lowest ever revenue collected.

A report by SEND Ghana, indicates that though revenues from the country’s oil production has been fluctuating since 2011, the years 2013, 2014 and 2018 have seen some significant revenues accrued to the state.

The first year of oil production in 2011 raked in an amount of US$444.13 million, with 22 percent increase in revenue to US$541.62 million in 2012.

The data indicates that while, so far, global oil prices have been a major determinant of how much oil export revenue Ghana derives, the gradual expansion of production through the commencement of new oilfields is increasingly making production volumes, rather than price, the key determinant.

Importantly, oil revenue allocations to the various designated funds have also been increasing.

As of the first half of this year, an allocation of US$1.587.53 billion has been made into the Ghana National Petroleum Corporation (GNPC) Fund, US$1.104.5 billion into the Ghana Stabilization Fund, US$464.26 million, with the annual budget funding amount (ABFA) receiving allocation of US$2.001.31 billion since 2011.