By Jibril Abdul Mumuni
Accra, May 23, GNA – The Public Interest Accountability Committee (PIAC) has revealed that the Carried Participating Interest (CAPI) dominated the revenue earnings for Ghana in 2023.
The Committee, in its 2024 report, indicated that total earnings from CAPI were higher than other revenue sources, notably corporate income tax, surface rentals, royalties, and the Petroleum Holding Fund income (PHF).
The Committee said CAPI continued to contribute the highest percentage of total revenues for Ghana, followed by corporate income taxes, royalties, PHF income, and surface rentals.
Carried Participating Interest in the Oil and Gas is defined as a portion of a well’s ownership that is exempted from all or most of the expenses associated with its discovery, drilling, and completion but earns income on the well’s output.
Ghana’s participation in the oil and gas sector is characterised by this arrangement, where it is exempt from all or most expenses associated with the discovery, drilling, and completion but earns income.
Ghana is entitled to 15 percent CAPI in accordance with Section 10 of the Petroleum Exploration Law.
The law states that when a discovery of oil is declared to be commercial, the State, acting through the State oil company, shall have a carried interest of at least 15 percent and the option to acquire an additional participating interest in the discovery.
According to the Committee, the revenue derived from CAPI in 2023 constituted 44.3 percent of $471 million of total petroleum revenues, as compared to $734 million of petroleum revenue in 2022.
PIAC said the decline represented about a 36 percent decrease in CAPI over that of 2022.
PIAC said CAPI generated from the Jubilee Field stood at $343 million, while that of TEN and SGN amounted to $54 million and $73 million, respectively.
Carried and Participating Interest has been the most significant source of revenue for the State, contributing 58 percent, followed by royalty payments at 25 percent and corporate income tax at 16.5 percent.
PIAC said Ghana earned approximately $370 million from corporate income tax, $220 million in royalties, $6 million for the PHF, and $771 thousand for surface rentals.
According to the Committee, total revenue earnings for Ghana for the year 2023 was $1,062,323,419.12, representing a 25.65 percent decrease from that of 2022.
GNA