BANK OF GHANA PETROLEUM HOLDING FUND & GHANA ...
BANK OF GHANA PETROLEUM HOLDING FUND & GHANA PETROLEUM FUNDS SEMI ANNUAL REPORT: January 1 – June 30, 2014
Jubilee Oil Field
SEMI-ANNUAL REPORT
CONTENTS 1.
INTRODUCTION .......................................................................................................................................... 3
2.
CRUDE OIL LIFTING & ALLOCATION .................................................................................................... 3
a)
January–June 2014 Lifting and Allocation ............................................................................................... 3
b)
Withdrawal from Ghana Stabilisation Fund .............................................................................................. 5
c)
Details of Other Receipts ............................................................................................................................ 5
3.
PORTFOLIO PERFORMANCE ................................................................................................................. 6
4.
PETROLEUM HOLDING FUND ................................................................................................................ 7
5.
CONCLUSION .............................................................................................................................................. 7
ABBREVIATIONS: ABFA: bbl/d: bbls: bopd. CAPI: ECB: EFC: FOMC: GHAPET: GHF: GPFs: GSF: GNPC: mb/d: PHF: PRMA:
Annual Budget Funding Amount barrels per day barrels of oil barrels of oil per day Carried and Participating Interest European Central Bank Equity Finance Cost Federal Open Market Committee Ghana Petroleum Holding Fund Account at Federal Reserve Bank of New York Ghana Heritage Fund Ghana Petroleum Funds Ghana Stabilisation Fund Ghana National Petroleum Corporation Million barrels per day Petroleum Holding Fund Petroleum Revenue Management Act 2011 (815)
Page 2
SEMI-ANNUAL REPORT
1.
INTRODUCTION
The Petroleum Holding Fund (PHF) and the Ghana Petroleum Funds (GPFs) were established by the Petroleum Revenue Management Act (2011) (Act 815) (PRMA). In accordance with the PRMA Section 28(a), (b) the Bank of Ghana reports on the performance and activities of the PHF, and GPFs for the first half of 2014 (H1) ended June 30, 2014. 2.
CRUDE OIL LIFTING & ALLOCATION a) January–June 2014 Lifting and Allocation
During H1 2014 an amount of US$562.48 million was received into the PHF. Of this amount US$410.44 million was proceeds of the four liftings (see Table 1) undertaken by the Ghana Group. The additional US$152.04 million was in respect of corporate income tax, royalties and surface rentals. TABLE 1 PETROLEUM HOLDING FUND RECEIPTS JAN 2014 - JUN 2014 NARRATION LIFTINGS LIFTING DATE BIll OF LADING QUANTITY
16th Lifting** 20-Dec-13 917,189 (US$)
LIFTING PROCEEDS Other Receipts Distributed with Liftings* TOTAL
101,775,877.39 105,200,956.39 206,976,833.78
17th Lifting 29-Jan-14 947,220 (US$)
18th Lifting 25-Mar-14 947,276 (US$)
103,223,299.50
101,918,372.12
17,864.45 103,241,163.95
46,091,469.48 148,009,841.60
19th Lifting 13-May-13 947,574 (US$) 103,522,459.50 733,964.74 104,256,424.24
Total (US$) 410,440,008.51 152,044,255.06 562,484,263.57
* Other Petroleum Reciepts includes Taxes, Royalties, Surface Rentals shown in Table 4 ** Proceeds for 16th lifting reported in H2 of 2013 report
TABLE 2 PETROLEUM HOLDING FUND ALLOCATIONS JAN 2014 - JUN 2014 LIFTINGS
16th Lifting US$ 206,976,833.78
RECEIPTS ALLOCATION: ANNUAL BUDGET FUNDING AMOUNT 102,268,194.45 GNPC 28,656,214.66 GHANA STABILISATION FUND 53,236,697.27 GHANA HERITAGE FUND 22,815,727.40 TOTAL 206,976,833.78
17th Lifting US$ 103,241,163.95 -
26,562,323.35 53,675,188.42 23,003,652.18 103,241,163.95
18th Lifting US$ 148,009,841.60 102,268,194.45
25,305,824.68 14,305,075.73 6,130,746.74 148,009,841.60
19th Lifting*** US$ 104,256,424.24 -
-
US$ 562,484,263.57 204,536,388.90 80,524,362.69 121,216,961.42 51,950,126.32 458,227,839.33
*** Yet to be distributed
Distributions made in the half year amounted to US$458.23 leaving an undistributed balance of US$104.26 million (table 2).
Page 3
SEMI-ANNUAL REPORT
Table 3 below shows a comparative analysis of the allocations for H1 2014 versus H2 2013. ABFA H1 target of US$204.54 million was fully met (based on the annual ABFA of US$409.07 million). GNPC received an amount of US$80.52 million for CAPI and EFC in H1 2014 compared to US$104.06 million in H2 2013. The Ghana Stabilisation Fund and the Ghana Heritage Fund received US$121.22 million and US$51.95 million, respectively, in H1 2014 compared to US$116.63 million and US$49.98 million for H2 of 2013.
TABLE 3: PETROLEUM HALF YEARLY ALLOCATION FOR 2013 H2 & 2014 H1 ALLOCATION H1 (2014) TOTAL H2 (2013) TOTAL
GNPC US$ 80,524,362.69
ABFA US$ 204,536,388.90
STAB US$ 121,216,961.42
HERT US$ 51,950,126.32
TOTAL US$ 458,227,839.33
104,059,031.34
136,598,783.32
116,629,093.69
49,983,897.29
407,270,805.64
Figure 1 below shows the allocation of funds since first lifting in 2011. Total lifting proceeds and other income allocated from inception to the end of June 2014 amounted to US$2.290 billion. ABFA received a total of US$931.24 million representing 39% of the total revenue since 2011 while GNPC received a total amount of US$741.76 million equivalent to 31% of total revenue. GSF and GHF had each received an amount of US$438.64 million (18%) and US$178.90 million (7%) respectively
Figure 1: ALLOCATION OF GHANA GROUP PROCEEDS FROM INCEPTION
0.01% $200,000
ABFA 31% $741,759,968
7%, $178,900,378
18% $438,639,563
GH HERITAGE
39% $931,243,483
GH STAB
GNPC
Mandatory Bal(GHAPET)
1 source: Bank of Ghana.
Page 4
SEMI-ANNUAL REPORT
b) Withdrawal from Ghana Stabilisation Fund In line with section 23(3) of the PRMA, Act 815, the GSF was capped at US$250 million. Thus, in Q2 an amount of US$176,491,336.87 million which was the excess over the cap was withdrawn from the GSF. This was allocated to the Contingency Fund Account (US$17.43 million or GH¢50.0 million), and the Debt Service Account (US$159.06 million).
c) Details of Other Receipts Other petroleum receipts comprising corporate taxes, royalties and surface rentals received in H1 2014 amounted to US$162.81 million (see Table 4 below), as compared to US$98.03 million received in H2 2013. Of this amount, corporate taxes amounted to US$161.59 million, and surface rental was US$0.673 million and royalties US$0.15 million. A surface rental invoice dated February 21, 2013 for US$67,438.36 billed to Oranto/Stone Energy remains outstanding at end H1 2014. TABLE 4. SURFACE RENTALS, ROYALTIES & TAX RECEIPTS JAN - JUNE 2014 TABLE 4: SURFACE RENTALS & ROYALTIES RECEIVED JAN-JUNE 2014 Value Date Ordering Institution Amount Paid Narration (US$) 19-Feb-14 Kosmos Energy 17,864.45 Surface Rental 31-Mar-14 Oranto 73,207.54 Surface Rental 5-May-14 Cola Natural Resources Gh ltd 78,230.00 Surface Rental 5-Jun-14 Lukoil Overseas 154,398.60 Surface Rental 13-Jun-14 ENI Ghana EP 176,000.00 Surface Rental 13-Jun-14 ENI Ghana EP 22,600.00 Surface Rental 23-Jun-14 Hess Gh EXPL LTD 150,750.00 Surface Rental TOTAL 673,050.59 22-May-14
Lushann Int. Ghana
151,986.14
TOTAL
151,986.14
24-Jan-14
KOSMOS GH
15,431,379.00
30-Jan-14
ANARDARKO
48,624,836.00
30-Jan-14
TULLOW GH
41,048,728.00
23-Apr-14
KOSMOS GH
28-Apr-14
TULLOW GH
29-Apr-14
ANARDARKO
27-Jun-14
TULLOW GH
13,135,763.00 15,532,675.00 17,341,575.00 10,471,629.83 161,586,585.83
TOTAL 18-Jun-14
UNIPEC
20-Dec-13
PHF INCOME
6-Jun-14
PHF INCOME
297,248.72 96,013.39 8,248.94 401,511.05 162,813,133.61
TOTAL
Page 5
Royalty (3%)
4Q 2013 Corp tax 4Q 2013 Corp tax 4Q 2013 Corp tax 1Q 2014 Corp tax 1Q 2014 Corp tax 1Q 2014 Corp tax 2013 Additional tax
2013 differential PHF INCOME PHF INCOME
SEMI-ANNUAL REPORT
3.
PORTFOLIO PERFORMANCE
In the US growth was weaker-than-expected in Q1, 2014. The economy contracted with GDP touching -2.9%. Growth in economic activity rebounded in Q2 as GDP grew by 4%, beating estimates of 3%. However, some downside pressures to economic growth remained persistent. A range of labour market indicators signaled considerable underutilization of labour resources. Recovery in the housing sector continued to be slow and fiscal policy remained a restraint on economic growth. In view of these developments the FOMC continued to purchase longer term treasury securities to maintain downward pressure on longer term interest rates and ease funding conditions. Consequently the US Treasury curve flattened in H1. The 10-year yield started the year at 3.0% and finished H1 at 2.52%. In H1 2014 the euro area economy experienced continued uneven recovery with low rates of inflation and subdued credit and monetary dynamics.
The ECB lowered the interest rate on the main
refinancing operations of the Eurosystem by 10 basis points to 0.15%. The rate on the deposit facility was also lowered by 10 basis points to -0.10%. These measures were taken to provide additional monetary policy accommodation and reverse deflationary risks. T able 5: Total Return year to date Returns Portfolio(%) Stabilisation (%) Jun-14
2.64
1.47
Heritage(%) 5.37
Table 5 above shows total returns on the GPFs. Total return year to date for GPFs was 2.64 percent net of fees for the first half of 2014. GSF contributed 1.47 percent while GHF contribution was 5.37 percent. This performance took place amidst disappointment in global growth relative to expectations.
Page 6
SEMI-ANNUAL REPORT
figure 2: Total Returns Since Inception US$4,607,913.76 GHF, US($) 2,059,536.95 44.70%
GSF
GHF
GSF US($) 2,548,376.81 55.30%
From Figure 2 above, GPFs return since inception was US$4.607 million with GSF contributing 55.30% and GHF contributing 44.70%. 4.
PETROLEUM HOLDING FUND
As at June 30, 2014 the Petroleum Holding Fund Account (PHF) held a balance of US$115.23 million. The balance on the account comprised 19th lifting proceeds of US$103.52 million, other income totaling US$11.50 million and mandatory balance of US$200,000.00 (See Schedule 1 attached). 5.
CONCLUSION
The GSF and GHF continued to earn positive returns during H1 2014. GSF and GHF returned 1.47% and 5.37% respectively. A combination of modest growth, subdued inflation, and continued central bank accommodation have maintained downward pressure on longer term interest rates. In the half year ahead, accommodative monetary policies will help to make broader financial conditions more accommodative, support a stronger economic recovery and create impetus for the normalization of interest rates. The portfolios of the Ghana Petroleum Funds will be repositioned to benefit from a normalized interest rate regime.
Prepared by Ghana Petroleum Funds Secretariat, Bank of Ghana
July 17, 2014
Page 7
SEMI-ANNUAL REPORT
Schedule 1 PETROLEUM ACCOUNT AT FEDERAL RESERVE BANK OF NEW YORK Value of Shipment Volume Of Crude Shipped (BBLS) (US$)
(A) INFLOWS: Date LIFTING PROCEEDS APRIL 2011 TO DEC 2012 JAN 2013 TO DEC 2013 20th December 2013 29th January 2014
Notes
8,861,223 5,876,260 917,189 947,220
985,590,355.05 628,580,078.49 101,775,877.39 103,223,299.50
1 2 3 4
25th March 2014
947,247
101,918,372.12
5
13th May 2014
947,574
103,522,459.50
6
OTHER INCOME MAR 2012 TO DEC 2012 JAN 2013 TO DEC 2013 24th January 2014 30th January 2014 30th January 2014 19th February 2014 31st March 2014 April 2011 to Feb 2014 23rd April 2014 28th April 2014 29th April 2014 31st March 2014 5th May 2014 22nd May 2014 5th June 2014 13th June 2014 13th June 2014 18th June 2014 23th June 2014 27th June 2014
7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
TOTAL (B) DISBURSEMENTS MAY 2011 TO DEC 2012 JAN 2013 TO DEC 2013 28th FEB 2014 27th MAR 2014 29th MAY 2014
GNPC Equity GNPC Equity GNPC Equity GNPC Equity GNPC Equity
AUG 2011 TO DEC 2012 JAN 2013 TO DEC 2013 28th FEB 2014 27th MAR 2014 29th MAY 2014
GNPC 40% GNPC 40% GNPC 30% GNPC 30% GNPC 30%
APRL 2011 TO DEC 2012 JAN 2013 TO DEC 2013 28th FEB 2014 27th MAR 2014 29th MAY 2014
Annual Annual Annual Annual Annual
NOV 2011 TO AUG 2012 JAN 2013 TO DEC 2013 28th FEB 2014 27th MAR 2014 29th MAY 2014
Transfer to Ghana Heritage Transfer to Ghana Heritage Transfer to Ghana Heritage Transfer to Ghana Heritage Transfer to Ghana Heritage
9,463,193.00 6,024,303.46 4,632,855.00 345,555,577.73
181,798,785.15 154,001,593.02 19,192,991.66 20,538,019.89 20,672,969.68 396,204,359.40
Sub Total
Budget Funding Amount for 1ST to 9TH lifting Budget Funding Amount for 10TH to 15TH lifting Budget Funding Amount for 16TH lifting Budget Funding Amount for 17TH lifting Budget Funding Amount for 18TH lifting
453,509,527.69 273,197,566.63 102,268,194.53 102,268,194.45
Sub Total
931,243,483.30
1st - 9th 10th-15TH Lifting 16TH Lifting 17TH Lifting 18TH Lifting
Sub Total TOTAL DISBURSEMENTS BALANCE ON ACCOUNT TOTAL BALANCE ON ACCOUNT 1. April 2011 to Dec 2012 Proceeds 2. Jan to Dec 2013 Proceeds 3. Proceeds for Sixteenth oil lift 4. Proceeds for Seventeenth oil lift 5. Proceeds for Eighteenth oil lift 6. Proceeds for Nineteenth Oil lift 7. Mar 2012 to Dec 2012, other Income 8. Jan 2013 to Dec 2013 other Income 9. Q4 2013 corporate tax by Kosmos 10. Q4 2013 corporate tax by Tullow 11. Q4 2013 corporate tax by Anardarko 12. Surface Rental payment for kosmos energy 13. Oranto 2012/2013 rental fees 14. Income on Investment of Undistributed funds 15. Q1 2014 corporate tax by kosmos 16. Q1 2014 corporate tax by Tullow Gh 17. Q1 2014 corporate tax by Anadarko 18 .Income on Investment of Undistributed funds 19 Surface Rental by Cola Natural Resource 20. Lushann Int energy ltd (Saltpond) 21. Surface Rental by Lukoil Overseas 22. Surface Rental by Eni Ghana EP 23. Surface Rental by Eni Ghana EP 24 2013 Petroleum Price differential paid by UNIPEC 25. Hess Gh Expl Ltd 26. Tullow additional income tax for 2013 27. Balance on Account
Page 8
906,567.46 217,832,955.89 15,431,379.00 41,048,728.00 48,624,836.00 17,864.45 73,207.54 96,013.39 13,135,763.00 15,532,675.00 17,341,575.00 8,248.94 78,230.00 151,986.14 154,398.60 176,000.00 22,600.00 297,248.72 150,750.00 10,471,629.83
68,319,783.18
Sub Total
Notes
103,223,299.50 101,918,372.12 103,522,459.50
257,115,443.09
for 1ST to 9TH lifting for 10TH to 15TH lifting for 16TH lifting for 17TH lifting for 18TH lifting
& stabilisation & stabilisation & stabilisation & stabilisation & stabilisation
985,196,046.53 628,580,078.49 101,775,877.39
2,405,768,790.49
Financing Cost for 1ST to 9TH lifting Financing Cost for 10th to 15th lifting Financing Cost for 16th lifting Financing Cost for 17th lifting Financing Cost for 18th lifting
CAPI CAPI CAPI CAPI CAPI
(US$)
93,324,707.97 351,048,145.30 76,052,424.67 76,678,840.60 20,435,822.47
617,539,941.01
27
2,290,543,361.44 115,225,429.05 115,225,429.05
SEMI-ANNUAL REPORT
Schedule 2: Ghana Petroleum Funds- Semi Annual Report: January 1 - June 30 2014 GHANA PETROLEUM FUNDS GHANA STABILISATION FUND ACCOUNT US$ Opening book Value (1 January 2014)
319,034,153.16
Receipt during the period
121,216,961.42
Bank Charges
(9,321.63)
946,146.91
Income from Investments Withdrawal
(176,491,336.87)
Closing book Value (30 June 2014)
264,696,602.99
Net Income for the 1st Half of 2014 comprised the Following INCOME
US$
946,146.91
Investment Income Less: Bank Charges
(9,321.63)
Net Return for the Period
936,825.28
GHANA HERITAGE FUND ACCOUNT US$
128,125,942.40
Opening book Value (1 January 2014) Receipt during the period
51,950,126.32
Bank Charges
(4,856.53)
888,702.38
Income from Investments Closing book Value (30 June 2014)
180,959,914.57
Net Income for the 1st Half of 2014 comprised the Following: INCOME
US$
888,702.38
Investment Income Less: Bank Charges
(4,856.53)
Net Return for the Period
883,845.85
Page 9
Jubilee Oil Field
SEMI-ANNUAL REPORT
CONTENTS 1.
INTRODUCTION .......................................................................................................................................... 3
2.
CRUDE OIL LIFTING & ALLOCATION .................................................................................................... 3
a)
January–June 2014 Lifting and Allocation ............................................................................................... 3
b)
Withdrawal from Ghana Stabilisation Fund .............................................................................................. 5
c)
Details of Other Receipts ............................................................................................................................ 5
3.
PORTFOLIO PERFORMANCE ................................................................................................................. 6
4.
PETROLEUM HOLDING FUND ................................................................................................................ 7
5.
CONCLUSION .............................................................................................................................................. 7
ABBREVIATIONS: ABFA: bbl/d: bbls: bopd. CAPI: ECB: EFC: FOMC: GHAPET: GHF: GPFs: GSF: GNPC: mb/d: PHF: PRMA:
Annual Budget Funding Amount barrels per day barrels of oil barrels of oil per day Carried and Participating Interest European Central Bank Equity Finance Cost Federal Open Market Committee Ghana Petroleum Holding Fund Account at Federal Reserve Bank of New York Ghana Heritage Fund Ghana Petroleum Funds Ghana Stabilisation Fund Ghana National Petroleum Corporation Million barrels per day Petroleum Holding Fund Petroleum Revenue Management Act 2011 (815)
Page 2
SEMI-ANNUAL REPORT
1.
INTRODUCTION
The Petroleum Holding Fund (PHF) and the Ghana Petroleum Funds (GPFs) were established by the Petroleum Revenue Management Act (2011) (Act 815) (PRMA). In accordance with the PRMA Section 28(a), (b) the Bank of Ghana reports on the performance and activities of the PHF, and GPFs for the first half of 2014 (H1) ended June 30, 2014. 2.
CRUDE OIL LIFTING & ALLOCATION a) January–June 2014 Lifting and Allocation
During H1 2014 an amount of US$562.48 million was received into the PHF. Of this amount US$410.44 million was proceeds of the four liftings (see Table 1) undertaken by the Ghana Group. The additional US$152.04 million was in respect of corporate income tax, royalties and surface rentals. TABLE 1 PETROLEUM HOLDING FUND RECEIPTS JAN 2014 - JUN 2014 NARRATION LIFTINGS LIFTING DATE BIll OF LADING QUANTITY
16th Lifting** 20-Dec-13 917,189 (US$)
LIFTING PROCEEDS Other Receipts Distributed with Liftings* TOTAL
101,775,877.39 105,200,956.39 206,976,833.78
17th Lifting 29-Jan-14 947,220 (US$)
18th Lifting 25-Mar-14 947,276 (US$)
103,223,299.50
101,918,372.12
17,864.45 103,241,163.95
46,091,469.48 148,009,841.60
19th Lifting 13-May-13 947,574 (US$) 103,522,459.50 733,964.74 104,256,424.24
Total (US$) 410,440,008.51 152,044,255.06 562,484,263.57
* Other Petroleum Reciepts includes Taxes, Royalties, Surface Rentals shown in Table 4 ** Proceeds for 16th lifting reported in H2 of 2013 report
TABLE 2 PETROLEUM HOLDING FUND ALLOCATIONS JAN 2014 - JUN 2014 LIFTINGS
16th Lifting US$ 206,976,833.78
RECEIPTS ALLOCATION: ANNUAL BUDGET FUNDING AMOUNT 102,268,194.45 GNPC 28,656,214.66 GHANA STABILISATION FUND 53,236,697.27 GHANA HERITAGE FUND 22,815,727.40 TOTAL 206,976,833.78
17th Lifting US$ 103,241,163.95 -
26,562,323.35 53,675,188.42 23,003,652.18 103,241,163.95
18th Lifting US$ 148,009,841.60 102,268,194.45
25,305,824.68 14,305,075.73 6,130,746.74 148,009,841.60
19th Lifting*** US$ 104,256,424.24 -
-
US$ 562,484,263.57 204,536,388.90 80,524,362.69 121,216,961.42 51,950,126.32 458,227,839.33
*** Yet to be distributed
Distributions made in the half year amounted to US$458.23 leaving an undistributed balance of US$104.26 million (table 2).
Page 3
SEMI-ANNUAL REPORT
Table 3 below shows a comparative analysis of the allocations for H1 2014 versus H2 2013. ABFA H1 target of US$204.54 million was fully met (based on the annual ABFA of US$409.07 million). GNPC received an amount of US$80.52 million for CAPI and EFC in H1 2014 compared to US$104.06 million in H2 2013. The Ghana Stabilisation Fund and the Ghana Heritage Fund received US$121.22 million and US$51.95 million, respectively, in H1 2014 compared to US$116.63 million and US$49.98 million for H2 of 2013.
TABLE 3: PETROLEUM HALF YEARLY ALLOCATION FOR 2013 H2 & 2014 H1 ALLOCATION H1 (2014) TOTAL H2 (2013) TOTAL
GNPC US$ 80,524,362.69
ABFA US$ 204,536,388.90
STAB US$ 121,216,961.42
HERT US$ 51,950,126.32
TOTAL US$ 458,227,839.33
104,059,031.34
136,598,783.32
116,629,093.69
49,983,897.29
407,270,805.64
Figure 1 below shows the allocation of funds since first lifting in 2011. Total lifting proceeds and other income allocated from inception to the end of June 2014 amounted to US$2.290 billion. ABFA received a total of US$931.24 million representing 39% of the total revenue since 2011 while GNPC received a total amount of US$741.76 million equivalent to 31% of total revenue. GSF and GHF had each received an amount of US$438.64 million (18%) and US$178.90 million (7%) respectively
Figure 1: ALLOCATION OF GHANA GROUP PROCEEDS FROM INCEPTION
0.01% $200,000
ABFA 31% $741,759,968
7%, $178,900,378
18% $438,639,563
GH HERITAGE
39% $931,243,483
GH STAB
GNPC
Mandatory Bal(GHAPET)
1 source: Bank of Ghana.
Page 4
SEMI-ANNUAL REPORT
b) Withdrawal from Ghana Stabilisation Fund In line with section 23(3) of the PRMA, Act 815, the GSF was capped at US$250 million. Thus, in Q2 an amount of US$176,491,336.87 million which was the excess over the cap was withdrawn from the GSF. This was allocated to the Contingency Fund Account (US$17.43 million or GH¢50.0 million), and the Debt Service Account (US$159.06 million).
c) Details of Other Receipts Other petroleum receipts comprising corporate taxes, royalties and surface rentals received in H1 2014 amounted to US$162.81 million (see Table 4 below), as compared to US$98.03 million received in H2 2013. Of this amount, corporate taxes amounted to US$161.59 million, and surface rental was US$0.673 million and royalties US$0.15 million. A surface rental invoice dated February 21, 2013 for US$67,438.36 billed to Oranto/Stone Energy remains outstanding at end H1 2014. TABLE 4. SURFACE RENTALS, ROYALTIES & TAX RECEIPTS JAN - JUNE 2014 TABLE 4: SURFACE RENTALS & ROYALTIES RECEIVED JAN-JUNE 2014 Value Date Ordering Institution Amount Paid Narration (US$) 19-Feb-14 Kosmos Energy 17,864.45 Surface Rental 31-Mar-14 Oranto 73,207.54 Surface Rental 5-May-14 Cola Natural Resources Gh ltd 78,230.00 Surface Rental 5-Jun-14 Lukoil Overseas 154,398.60 Surface Rental 13-Jun-14 ENI Ghana EP 176,000.00 Surface Rental 13-Jun-14 ENI Ghana EP 22,600.00 Surface Rental 23-Jun-14 Hess Gh EXPL LTD 150,750.00 Surface Rental TOTAL 673,050.59 22-May-14
Lushann Int. Ghana
151,986.14
TOTAL
151,986.14
24-Jan-14
KOSMOS GH
15,431,379.00
30-Jan-14
ANARDARKO
48,624,836.00
30-Jan-14
TULLOW GH
41,048,728.00
23-Apr-14
KOSMOS GH
28-Apr-14
TULLOW GH
29-Apr-14
ANARDARKO
27-Jun-14
TULLOW GH
13,135,763.00 15,532,675.00 17,341,575.00 10,471,629.83 161,586,585.83
TOTAL 18-Jun-14
UNIPEC
20-Dec-13
PHF INCOME
6-Jun-14
PHF INCOME
297,248.72 96,013.39 8,248.94 401,511.05 162,813,133.61
TOTAL
Page 5
Royalty (3%)
4Q 2013 Corp tax 4Q 2013 Corp tax 4Q 2013 Corp tax 1Q 2014 Corp tax 1Q 2014 Corp tax 1Q 2014 Corp tax 2013 Additional tax
2013 differential PHF INCOME PHF INCOME
SEMI-ANNUAL REPORT
3.
PORTFOLIO PERFORMANCE
In the US growth was weaker-than-expected in Q1, 2014. The economy contracted with GDP touching -2.9%. Growth in economic activity rebounded in Q2 as GDP grew by 4%, beating estimates of 3%. However, some downside pressures to economic growth remained persistent. A range of labour market indicators signaled considerable underutilization of labour resources. Recovery in the housing sector continued to be slow and fiscal policy remained a restraint on economic growth. In view of these developments the FOMC continued to purchase longer term treasury securities to maintain downward pressure on longer term interest rates and ease funding conditions. Consequently the US Treasury curve flattened in H1. The 10-year yield started the year at 3.0% and finished H1 at 2.52%. In H1 2014 the euro area economy experienced continued uneven recovery with low rates of inflation and subdued credit and monetary dynamics.
The ECB lowered the interest rate on the main
refinancing operations of the Eurosystem by 10 basis points to 0.15%. The rate on the deposit facility was also lowered by 10 basis points to -0.10%. These measures were taken to provide additional monetary policy accommodation and reverse deflationary risks. T able 5: Total Return year to date Returns Portfolio(%) Stabilisation (%) Jun-14
2.64
1.47
Heritage(%) 5.37
Table 5 above shows total returns on the GPFs. Total return year to date for GPFs was 2.64 percent net of fees for the first half of 2014. GSF contributed 1.47 percent while GHF contribution was 5.37 percent. This performance took place amidst disappointment in global growth relative to expectations.
Page 6
SEMI-ANNUAL REPORT
figure 2: Total Returns Since Inception US$4,607,913.76 GHF, US($) 2,059,536.95 44.70%
GSF
GHF
GSF US($) 2,548,376.81 55.30%
From Figure 2 above, GPFs return since inception was US$4.607 million with GSF contributing 55.30% and GHF contributing 44.70%. 4.
PETROLEUM HOLDING FUND
As at June 30, 2014 the Petroleum Holding Fund Account (PHF) held a balance of US$115.23 million. The balance on the account comprised 19th lifting proceeds of US$103.52 million, other income totaling US$11.50 million and mandatory balance of US$200,000.00 (See Schedule 1 attached). 5.
CONCLUSION
The GSF and GHF continued to earn positive returns during H1 2014. GSF and GHF returned 1.47% and 5.37% respectively. A combination of modest growth, subdued inflation, and continued central bank accommodation have maintained downward pressure on longer term interest rates. In the half year ahead, accommodative monetary policies will help to make broader financial conditions more accommodative, support a stronger economic recovery and create impetus for the normalization of interest rates. The portfolios of the Ghana Petroleum Funds will be repositioned to benefit from a normalized interest rate regime.
Prepared by Ghana Petroleum Funds Secretariat, Bank of Ghana
July 17, 2014
Page 7
SEMI-ANNUAL REPORT
Schedule 1 PETROLEUM ACCOUNT AT FEDERAL RESERVE BANK OF NEW YORK Value of Shipment Volume Of Crude Shipped (BBLS) (US$)
(A) INFLOWS: Date LIFTING PROCEEDS APRIL 2011 TO DEC 2012 JAN 2013 TO DEC 2013 20th December 2013 29th January 2014
Notes
8,861,223 5,876,260 917,189 947,220
985,590,355.05 628,580,078.49 101,775,877.39 103,223,299.50
1 2 3 4
25th March 2014
947,247
101,918,372.12
5
13th May 2014
947,574
103,522,459.50
6
OTHER INCOME MAR 2012 TO DEC 2012 JAN 2013 TO DEC 2013 24th January 2014 30th January 2014 30th January 2014 19th February 2014 31st March 2014 April 2011 to Feb 2014 23rd April 2014 28th April 2014 29th April 2014 31st March 2014 5th May 2014 22nd May 2014 5th June 2014 13th June 2014 13th June 2014 18th June 2014 23th June 2014 27th June 2014
7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
TOTAL (B) DISBURSEMENTS MAY 2011 TO DEC 2012 JAN 2013 TO DEC 2013 28th FEB 2014 27th MAR 2014 29th MAY 2014
GNPC Equity GNPC Equity GNPC Equity GNPC Equity GNPC Equity
AUG 2011 TO DEC 2012 JAN 2013 TO DEC 2013 28th FEB 2014 27th MAR 2014 29th MAY 2014
GNPC 40% GNPC 40% GNPC 30% GNPC 30% GNPC 30%
APRL 2011 TO DEC 2012 JAN 2013 TO DEC 2013 28th FEB 2014 27th MAR 2014 29th MAY 2014
Annual Annual Annual Annual Annual
NOV 2011 TO AUG 2012 JAN 2013 TO DEC 2013 28th FEB 2014 27th MAR 2014 29th MAY 2014
Transfer to Ghana Heritage Transfer to Ghana Heritage Transfer to Ghana Heritage Transfer to Ghana Heritage Transfer to Ghana Heritage
9,463,193.00 6,024,303.46 4,632,855.00 345,555,577.73
181,798,785.15 154,001,593.02 19,192,991.66 20,538,019.89 20,672,969.68 396,204,359.40
Sub Total
Budget Funding Amount for 1ST to 9TH lifting Budget Funding Amount for 10TH to 15TH lifting Budget Funding Amount for 16TH lifting Budget Funding Amount for 17TH lifting Budget Funding Amount for 18TH lifting
453,509,527.69 273,197,566.63 102,268,194.53 102,268,194.45
Sub Total
931,243,483.30
1st - 9th 10th-15TH Lifting 16TH Lifting 17TH Lifting 18TH Lifting
Sub Total TOTAL DISBURSEMENTS BALANCE ON ACCOUNT TOTAL BALANCE ON ACCOUNT 1. April 2011 to Dec 2012 Proceeds 2. Jan to Dec 2013 Proceeds 3. Proceeds for Sixteenth oil lift 4. Proceeds for Seventeenth oil lift 5. Proceeds for Eighteenth oil lift 6. Proceeds for Nineteenth Oil lift 7. Mar 2012 to Dec 2012, other Income 8. Jan 2013 to Dec 2013 other Income 9. Q4 2013 corporate tax by Kosmos 10. Q4 2013 corporate tax by Tullow 11. Q4 2013 corporate tax by Anardarko 12. Surface Rental payment for kosmos energy 13. Oranto 2012/2013 rental fees 14. Income on Investment of Undistributed funds 15. Q1 2014 corporate tax by kosmos 16. Q1 2014 corporate tax by Tullow Gh 17. Q1 2014 corporate tax by Anadarko 18 .Income on Investment of Undistributed funds 19 Surface Rental by Cola Natural Resource 20. Lushann Int energy ltd (Saltpond) 21. Surface Rental by Lukoil Overseas 22. Surface Rental by Eni Ghana EP 23. Surface Rental by Eni Ghana EP 24 2013 Petroleum Price differential paid by UNIPEC 25. Hess Gh Expl Ltd 26. Tullow additional income tax for 2013 27. Balance on Account
Page 8
906,567.46 217,832,955.89 15,431,379.00 41,048,728.00 48,624,836.00 17,864.45 73,207.54 96,013.39 13,135,763.00 15,532,675.00 17,341,575.00 8,248.94 78,230.00 151,986.14 154,398.60 176,000.00 22,600.00 297,248.72 150,750.00 10,471,629.83
68,319,783.18
Sub Total
Notes
103,223,299.50 101,918,372.12 103,522,459.50
257,115,443.09
for 1ST to 9TH lifting for 10TH to 15TH lifting for 16TH lifting for 17TH lifting for 18TH lifting
& stabilisation & stabilisation & stabilisation & stabilisation & stabilisation
985,196,046.53 628,580,078.49 101,775,877.39
2,405,768,790.49
Financing Cost for 1ST to 9TH lifting Financing Cost for 10th to 15th lifting Financing Cost for 16th lifting Financing Cost for 17th lifting Financing Cost for 18th lifting
CAPI CAPI CAPI CAPI CAPI
(US$)
93,324,707.97 351,048,145.30 76,052,424.67 76,678,840.60 20,435,822.47
617,539,941.01
27
2,290,543,361.44 115,225,429.05 115,225,429.05
SEMI-ANNUAL REPORT
Schedule 2: Ghana Petroleum Funds- Semi Annual Report: January 1 - June 30 2014 GHANA PETROLEUM FUNDS GHANA STABILISATION FUND ACCOUNT US$ Opening book Value (1 January 2014)
319,034,153.16
Receipt during the period
121,216,961.42
Bank Charges
(9,321.63)
946,146.91
Income from Investments Withdrawal
(176,491,336.87)
Closing book Value (30 June 2014)
264,696,602.99
Net Income for the 1st Half of 2014 comprised the Following INCOME
US$
946,146.91
Investment Income Less: Bank Charges
(9,321.63)
Net Return for the Period
936,825.28
GHANA HERITAGE FUND ACCOUNT US$
128,125,942.40
Opening book Value (1 January 2014) Receipt during the period
51,950,126.32
Bank Charges
(4,856.53)
888,702.38
Income from Investments Closing book Value (30 June 2014)
180,959,914.57
Net Income for the 1st Half of 2014 comprised the Following: INCOME
US$
888,702.38
Investment Income Less: Bank Charges
(4,856.53)
Net Return for the Period
883,845.85
Page 9
