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PIAC releases 2020 semi-annual report; check full findings


Adnan Adams Mohammed

The Public Interest and Accountability Committee (PIAC) has released its 2020 semi-annual report in Accra, last week, at a media training workshop organized by IFEJ and PIAC to aid in productive dissemination of the findings.

The 2020 Semi-annual Report is in fulfilment of PIAC’s statutory obligation under the Petroleum Revenue Management Act, 2011 (Act 815), as amended by Act 893, to publish Semi-annual and Annual Reports.

This Report is a reconciliation of data supplied by stakeholder institutions, and an independent assessment of the collection, management, and use of the country’s petroleum revenues for the period January – June 2020. This year’s delay in releasing the 2020 PIAC reports was largely due to the outbreak of Covid-19, which disrupted work activities of reporting entities. The delay in the release of data by some institutions was also a factor.

However, it is the expectation of the Committee that the general public will meticulously read the Report and provide feedback especially during public engagements to be held following the release of this semi-annual Report.

Below is the full list of findings captured in the 2020 PIAC semi-annual report: 

Petroleum Production and Sales

1. Cumulative raw gas production increased significantly by 65 percent; the highest recorded half-year volume of gas produced since 2010.

2. All the three producing Fields (Jubilee, TEN and SGN) recorded an increase in gas production, with the SGN Field recording a 130 percent increase attributable to stable production operations.

3. The average unit price achieved by the Ghana Group in all three Fields (US$42.49/bbl) were significantly lower than achieved unit prices in H1 2019 (US$65.08/bbl), representing a 34.71 percent decline.


Revenue Collection and Management

4. Total petroleum receipts in the PHF for the period stood at US$322,571,265.64, indicating an 11.32 percent decline.

5. CAPI contributed the highest portion of 40 percent to total receipts.

6. Even though GNPC received GH¢110.96 million under the Cash Waterfall Mechanism, there was no payment into the PHF in respect of raw gas supplied. Consistently, the non-payment of gas revenue denies the PHF of its due entitlement.


Petroleum Funds Distribution and Utilisation

7. Total petroleum funds distributed since inception till end of June 2020 was US$5.32 billion, of which approximately 39 percent went to the ABFA, 31 percent to GNPC, 21 percent to the GSF, and 9 percent to the GHF.

This suggests that about 91 percent of the petroleum revenue is available for spending by the current generation.

8. For the fourth time, the Ministry of Finance failed to provide ABFA utilisation data for the compilation of PIAC Reports. This makes it difficult to reconcile disbursements and expenditure, and undermines the spirit of accountability as envisaged in the PRMA.


Performance of the Ghana Petroleum Funds

9. There was a 24.09 percent reduction in the GPFs reserves at the end of June 2020 compared to H1 2019, as a result of the lowered cap and subsequent withdrawals from the GSF. Consequently, the GSF yield reduced by 68.08 percent from that of H1 2019.

10. The net profit on investment of the GPFs was US$8.58 million, as against US$11.20 million in H1 2019. This represents a reduction of 23.39 percent.

11. At the end of the period, an amount of US$33.34 million, being the excess over the cap of US$100 million placed on the GSF, was not transferred into the Sinking and/or Contingency Funds, as required by Law.


Allocation and Utilisation of GNPC’s Share of Petroleum Revenue

12. The Corporation’s receipts in H1 2020 (US$80.41 million) represents a 31.25 percent reduction from that of the same period in 2019 (US$116.96 million).

13. Budgetary allocation to the GNPC Foundation decreased by 11.7 percent in 2020 as against that of 2019. However, an amount of US$12.31 million, being financial obligations outstanding at the close of 2019, was brought forward, and honoured in H1 2020.

14. The Corporation budgeted US$41.93 million as Equity Financing for the Jubilee Field for H1 2020. However, it spent US$7.33 million, representing 17.5 percent of the budgeted amount.

15. GNPC spent only nine (9) percent of its total receipts on Jubilee equity financing. This is as a result of the re-phasing of work programmes, as well as disputes surrounding the Cash Calls submitted by the Operator. The disputes are currently under negotiations between GNPC and the Contractor Party.


Operations of GNGC

16. Revenue realised from the sale of LPG and Condensates decreased by 31.13 percent and 48.45 percent respectively. The Covid-19 and its associated effect on crude price on the world market affected revenue from Condensate, due to the benchmark with the PLATTS Index (Global Crude Market).

17. Out of the invoiced amount of US$93,547,640.50, US$10,185,922.57 was paid for the sale and transportation of lean gas.

18. Cumulative indebtedness to Ghana Gas continued to increase, totalling an amount of US$942,260,510.63 at the end of the period.

19. The policy of Government to make GNGC the national gas aggregator will likely qualify the Company to receive petroleum revenue funding as a National Oil Company, as well as make payments into the PHF.



1. PIAC reiterates its earlier call on Parliament to bring its oversight mandate to bear on the Ministry of Finance. This is because the Ministry’s persistent failure (fourth time) to provide half-year data on ABFA utilisation is not only adversely affecting the work of the Committee, but also eroding gains in the fight for transparency and accountability in the management and use of Ghana’s petroleum revenues for the benefit of citizens.

2. The Committee recommends the continuous monitoring of CSI expenditure by GNPC in order to ensure value for money for the remaining half of the year, and to minimise carryovers into 2021

3. Although negotiations are ongoing between GNPC and the Contractor Party, PIAC recommends that a contingency amount should be set aside by the Corporation in anticipation of the eventual outcome of the dispute, as it could go either way.

4. GNPC should ensure that appropriate lodgments into the PHF are made once the Corporation receives payments from the Cash Waterfall Mechanism for raw gas supplied.

5. Government’s clarification of the roles and mandates of regulatory institutions in the gas and power sectors is important for coordinated planning and improved management capacity. Government will need to design effective institutional arrangements with clear mandates for the institutions in the energy sector, including conducting technical studies on the electricity and gas sectors, to improve sector performance and to provide incentives to prospective investors.

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