Ghana’s oil revenue from the export of crude oil from the Jubilee Field has so far this year gone down by about 56.2 per cent on year-on-year basis due mainly to the supply glut in the crude oil market.
According to a Business and Financial Times [B&FT] report “the revenue made from crude oil operations so far this year is the worst recorded for the first nine months of any year since 2013”.
According to figures from the Finance Ministry, between January and September this year total petroleum receipts to government's Treasury amounted to $341 million, which is down from the $780 million recorded for the same period last year.
The B&FT report further stated that operators of the Jubilee Field say the shortfall in crude oil production was mainly due to technical challenges associated largely with gas compressors on the FPSO, which have since been resolved; and it is expected to ramp up production to its average daily production capacity of 102,000 barrels a day.
“The average daily production for this year has been 101,358 barrels, down from the 102,630 barrels of oil per day (bopd) for the same period in 2014.”
The decline in oil revenue, which has caused government to cut its spending for the year, was made worse by the shortfall in production output from the Jubilee Field, which fell to 27,668,675 barrels for the first nine months of this year, as compared to 28,107,990 barrels produced from the field in the same period last year.
Ghana’s Finance Minister Seth Terkper says the under- performance of petroleum revenues for the year stemmed from the rapid decline in crude oil prices and rigid nature of the Benchmark Revenue (BR) estimation, using the formula set out in the Petroleum Revenue Management Act (PRMA) which did not allow for a revision to the BR once estimated.