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Business News of Thursday, 31 October 2019

Source: Myjoyonline.com

Raw gas export from TEN reduced by 900% for first half of 2019 – PIAC report

Raw gas exports from the TEN Field for the first half of 2019 reduced by about 900 per cent compared with the half-year 2018 exports, the 2019 Semi-Annual Report of the Public Interest and Accountability Committee (PIAC) has stated.

The reduction was from as high as 5,361.52 MMscf in the first half of 2018 to 580.78 MMscf for the same period in 2019.

According to the PIAC report, overall, raw gas exports from the Jubilee and TEN Fields witnessed a 54.32 per cent decline for the reporting period from 14,694.27 MMscf in the first half of 2018 to 7,981.90 MMscf.

“Production on the TEN Field was affected by shut-down activities over a 14- day period from 22nd April to 5th May 2019, during which major maintenance works and inspections, affecting the average daily production and output of the Field, were undertaken,” the report stated.

A total of 34,309,685.53 barrels (bbls) of oil was produced from Ghana’s three offshore producing Fields - Jubilee, TEN, and SGN - from January to June 2019, representing an increase of 18.38 per cent over that achieved in the 2018 half-year.

The increased half-year output, the highest since the inception of production, was driven largely by production from the Jubilee and SGN Fields.

Revenue Collection and Management

Total petroleum receipts into the Petroleum Holding Fund (PHF) for the first half of 2019 was US$363,736,223.63 compared with US$463,569,064.38 for the same period in 2018, representing a decrease of 21.54 per cent.

Out of the total receipts, CAPI contributed 48.46 per cent, Royalty 17.86 per cent and CIT 33.35 per cent, with CIT exceeding royalties for the first time since 2014.

Revenue yet to be realised and paid into the PHF during the period amounted to US$199,458,924.00. This represents proceeds from liftings made in May and June from the three producing fields.

The 2019 Semi-Annual Report covers the period January to June, and encompasses a broad range of issues associated with the management and use of petroleum revenues such as information on production, liftings, total revenues accrued, total revenue received, allocation and utilisation of these revenues by government, and the management of the funds set aside in the Ghana Petroleum Funds (Ghana Stabilisation Fund and the Ghana Heritage Fund).

The report also examines other issues and findings pertinent to the performance of various institutions charged with responsibilities in the Petroleum Revenue Management Act, 2011 (Act 815) as amended by the Petroleum Revenue Management (Amendment) Act, 2015 (Act 893).