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Business News of Saturday, 5 October 2013

Source: XYZ

Ghana's Oil production hits 115,000 barrels daily

Daily oil production hit 115,000 barrels per day in June 2013, significantly higher than the projected average for the year, the African Center for Energy Policy (ACEP) report on Government Compliance with the Oil Revenue Management Act in the 2013 budget has revealed.

Total oil revenue of GH¢1.15 billion also far exceeded the projected target by GH¢362.3 million.

The report urged government to initiate discussions with Sabre Oil and Gas to recover the capital gains tax from the sale of its stake in offshore blocks.

It also indicted the 2013 budget for failing to capture capital gains tax as one of the revenue streams.

It added “the Petroleum Income Tax Law should be harmonized with the Internal Revenue Act.”

Released by the Executive Director of ACEP Mohammed Amin Adam, the report also said the projected transfers to the Ghana Petroleum Holding Fund will be exceeded when the data on petroleum is released. However, it expressed concern about the expected violations of the law.

These violations have been identified in four areas. They include confusion around the Petroleum Holding Fund and allocation of petroleum revenues to the Ghana National Gas Company.

The report was an initiative of the Center for Public Interest Law.