2020 Annual Petroleum Report

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2020 Annual Petroleum Report The Annual Report on the Petroleum Funds for 2020 i | Ministry of Finance, Professional, Ethical, Efficient, Responsive – Transforming Ghana Beyond Aid To purchase copies of the Report, please contact the Public Relations Office of the Ministry Ministry of Finance Public Relations Office New Building, Ground Floor, Room 001 and 003 P. O. Box MB 40 Accra – Ghana The 2020 Annual Report on the Petroleum Funds is also available on the internet at: www.mofep.gov.gh ii | Ministry of Finance, Professional, Ethical, Efficient, Responsive – Transforming Ghana Beyond Aid Acronyms and Abbreviations ABFA Annual Budget Funding Amount APP Asset Purchase Program Bcf Billion Cubic Feet BoE Bank of England BoG Bank of Ghana Bopd Barrels of Oil per Day CAPI Carried and Participating Interest CDB China Development Bank ECB European Central Bank FOMC Federal Open Market Committee FPSO Floating Production Storage and Offloading GDP Gross Domestic Product GHF Ghana Heritage Fund GIIF Ghana Infrastructure Investment Fund GNPC Ghana National Petroleum Corporation GOG Government of Ghana GPFs Ghana Petroleum Funds GPP Gas Processing Plant GSF Ghana Stabilisation Fund GUSIP Ghana Upstream Internship Project IHUC Installation Hook Up and Commissioning ITLOS International Tribunal for the Law of the Sea LNG Liquefied Natural Gas MMBtu Million British Thermal Units MMscf Million Standard Cubic Feet NOC National Oil Company OPEC Organisation of the Petroleum Exporting Countries OCTP Offshore Cape Three Points PIAC Public Interest Accountability Committee PHF Petroleum Holding Fund PRMA Petroleum Revenue Management Act, 2011 (Act 815), as amended SGN Sankofa-Gye Nyame TEN Tweneboa-Enyenra-Ntomme T-MAIN Treasury Main Account TRP Turret Remediation Project iii | Ministry of Finance, Professional, Ethical, Efficient, Responsive – Transforming Ghana Beyond Aid Contents Acronyms and Abbreviations .............................................................................................. iii List of Tables ....................................................................................................................... v List of Figures ..................................................................................................................... vi Appendices ........................................................................................................................ vii Executive Summary ...........................................................................................................viii SECTION ONE: INTRODUCTION ..................................................................................... 12 SECTION TWO: DEVELOPMENTS IN THE UPSTREAM PETROLEUM SECTOR IN 2020 ........................................................................................................................................... 13 SECTION THREE: PETROLEUM RECEIPTS AND UTILISATION IN 2020 ...................... 29 3.1 Petroleum Receipts .................................................................................................. 29 3.2 Distribution of 2020 Petroleum Receipts................................................................... 32 3.3 Allocation and Utilisation of the 2020 Annual Budget Funding Amount (ABFA) ....... 34 3.4 Utilisation of 2020 GNPC Allocations ....................................................................... 40 SECTION FOUR: PERFORMANCE OF THE GHANA PETROLEUM FUNDS IN 2020 .... 45 4.1 Developments in the Global Fixed Income Market ................................................... 45 4.2 Portfolio Performance of the Ghana Petroleum Funds ............................................. 46 4.3 Withdrawal from the Ghana Stabilisation Fund ......................................................... 49 4.4 Outlook for 2021 ................................................................................................... 49 SECTION FIVE: AUDITED FINANCIAL STATEMENTS OF THE PETROLEUM FUNDS . 50 SECTION SIX: CHALLENGES AND THE WAY FORWARD ............................................. 51 6.1 Challenges................................................................................................................ 51 SECTION SEVEN: CONCLUSION .................................................................................... 53 iv | Ministry of Finance, Professional, Ethical, Efficient, Responsive – Transforming Ghana Beyond Aid List of Tables Table 1: Details of Crude Oil Proceeds on Lifting Basis in 2020 (Jubilee) ......................... 15 Table 2: Details of Crude Oil Proceeds on Lifting Basis in 2020 (TEN) ............................. 17 Table 3: Details of Crude Oil Proceeds on Lifting Basis in 2020 (SGN) ............................. 19 Table 4: Jubilee and TEN Raw Gas Supply ....................................................................... 24 Table 5:Development of Regulations and Guidelines ........................................................ 25 Table 6: Crude Oil Liftings in 2020 (All Fields) ................................................................... 29 Table 7: Crude Oil Liftings from Jubilee Field in 2020........................................................ 29 Table 8: Crude Oil Liftings from TEN Field in 2020 ............................................................ 30 Table 9: Crude Oil Liftings from SGN Field in 2020 ........................................................... 30 Table 10: Analysis of Petroleum Receipts ......................................................................... 31 Table 11: Sources of Petroleum Receipts, 2020 ................................................................ 31 Table 12: Distribution of Petroleum Receipts ..................................................................... 33 Table 13: ABFA 2020 Allocation (2020 Budget Vrs, 2020 Revised Budget) ...................... 34 Table 14: ABFA Amount Spent in 2020 ............................................................................. 36 Table 15: Breakdown of ABFA Unutilised balances from 2017-2019................................. 36 Table 16: 2020 ABFA Actual Vs Revised Allocation .......................................................... 37 Table 17: 2020 ABFA Utilisation by Priority Area (In GH¢) ................................................ 38 Table 18: Utilisation of GNPC Share of Petroleum Revenue in 2020 ................................ 41 Table 19: Composition of GNPC Expenditures in 2020 ..................................................... 42 Table 20: Details of GNPC Exploration & Development Costs in 2020.............................. 43 Table 21: Returns on the Ghana Petroleum Funds, 2011-2020 ........................................ 48 v | Ministry of Finance, Professional, Ethical, Efficient, Responsive – Transforming Ghana Beyond Aid List of Figures Figure 1: Employment statistics for 2020 ........................................................................... 28 Figure 2: Composition of Total Petroleum Receipts, 2020 ................................................. 32 Figure 3: Percentage Allocation of Revised ABFA by Priority Programme ........................ 35 Figure 4: Percentage Utilization of ABFA Receipts by Priority Programme ....................... 40 Figure 5: Returns on the Ghana Heritage Fund ................................................................. 47 Figure 6: Return on Ghana Stabilisation Fund ................................................................... 47 vi | Ministry of Finance, Professional, Ethical, Efficient, Responsive – Transforming Ghana Beyond Aid Appendices Appendix 1: MONTHLY CRUDE OIL PRODUCTION IN 2020 .......................................... 54 Appendix 2: GAS DELIVERED TO THE GPP AND ORF FOR POWER GENERATION IN 2020 ................................................................................................................................... 55 Appendix 3: DETAILS OF JUBILEE GAS UTILIZATION IN 2020 ...................................... 55 Appendix 4: DISTRIBUTION OF 2020 PETROLEUM RECEIPTS ..................................... 56 Appendix 5: 2020 ABFA ALLOCATION (GH¢) .................................................................. 58 Appendix 6: DETAILS OF TEN GAS UTILIZATION IN 2020 ............................................. 59 Appendix 7: DETAILS OF SANKOFA GAS UTILIZATION IN 2020 ................................... 59 Appendix 8: AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31ST DECEMBER 2018 ................................................................................................................................... 60 Appendix 9: AUDITED FINANCIAL REPORT FOR THE YEAR ENDED 31ST DECEMBER 2019 ................................................................................................................................... 65 Appendix 10: BREAKDOWN OF PROJECTED ABFA SPENDING BY PRIORITY AREA AND MDA .......................................................................................................................... 70 Appendix 11: DETAILS OF UTILISATION OF ABFA IN 2020 ........................................... 71 Appendix 12: LIST OF PERSONS HOLDING POSITIONS AND QUALIFYING INSTRUMENTS ............................................................................................................... 207 vii | Ministry of Finance, Professional, Ethical, Efficient, Responsive – Transforming Ghana Beyond Aid Executive Summary 1. The 2020 Annual Report on the Petroleum Funds (GPFs) has been prepared pursuant to Section 48 of the Petroleum Revenue Management Act, 2011 (Act 815), as amended
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