ghana petroleum funds secretariat - Bank of Ghana
BANK OF GHANA PETROLEUM HOLDING FUND & GHANA PETROLEUM FUNDS SEMI ANNUAL REPORT: July 1 – December 31, 2013
Jubilee Oil Field
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
CONTENTS 1.
INTRODUCTION ................................................................................................................................................... 3
2.
OIL MARKET REVIEW......................................................................................................................................... 3
A)
WORLD MARKET REVIEW................................................................................................................................. 3
B)
DEVELOPMENTS IN THE GHANAIAN OIL & GAS SECTOR......................................................................... 3
I)
EXPLORATION DISCOVERIES .......................................................................................................................... 3
II)
PRODUCTION ....................................................................................................................................................... 4
3.
CRUDE OIL LIFTING & ALLOCATION .............................................................................................................. 5
A)
JULY–DECEMBER 2013 LIFTING AND ALLOCATION .................................................................................. 5
4.
SURFACE RENTALS, ROYALTIES AND TAXES ............................................................................................ 7
5.
PORTFOLIO PERFORMANCE ........................................................................................................................... 8
6.
PETROLEUM HOLDING FUND ........................................................................................................................ 11
7.
CONCLUSION ..................................................................................................................................................... 11
ABBREVIATIONS: ABFA: bbl/d: bbls: Brent Crude: bopd. CAPI: CDS: ECB: FOMC: FPSO: GHAPET: GHF: GSF: GNPC: mb/d: MTAB: OPEC: PBOC: PHF: PRMA: TEN: WTI:
Annual Budget Funding Amount barrels per day barrels of oil Price Index for light sweet crude oil sourced from North sea barrels of oil per day Carried and Participating Interest Credit Default Swaps European Central Bank Federal Open Market Committee Floating, Production, Storage and Offloading vessel Ghana Petroleum Holding Fund Account at Federal Reserve Bank of New York Ghana Heritage Fund Ghana Stabilisation Fund Ghana National Petroleum Corporation Million barrels per day Mahogany, Teak, Akasa and Banda oil wells Organization of the Petroleum Exporting Countries People’s Bank of China Petroleum Holding Fund Petroleum Revenue Management Act 2011 (815) Tweneboa, Enyenra, Ntomme oil wells West Texas Intermediate (Benchmark for light sweet crude oil from the Americas)
Page 2
GHANA PETROLEUM FUNDS SECRETARIAT 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 second half of 2013 ended December 31, 2013.
2. OIL MARKET REVIEW a)
World Market Review
Figure 1: Spot Brent Crude Price July 1 – December 31, 2013
Source: Bloomberg
Second half of 2013(H2) started with Brent crude priced at US$102.76. The Price rose to US$118.11 on August 28, 2013 which was the highest price attained in the second half of 2013. Brent crude fell and ended the year on December 31, 2013 at the price of US$110.82. The Commodity is forecast to trade range bound between US$102.16 and US$106.27 for 2014.
b) Developments in the Ghanaian Oil & Gas Sector
i)
Exploration Discoveries
Tweneboa-Enyenra-Ntomme (TEN) which represents the second major deep oil development project in Ghana is forecast to deliver its first oil in 2016 with a daily production output of 80,000 barrels. Major contracts for the Tweneboa-Enyenra-Ntomme (TEN) project have been awarded including the FPSO subsea systems and others by the development partners. Page 3
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
The expansion of the gas handling capacity associated with the Jubilee FPSO and a third gas injection well enhancement was slated to have been completed in the fourth quarter. This enhancement was meant to have increased daily production to 120,000 barrels of oil per day. Appraisal of the Mahogany-Teak-Akasa (MTA) pre-development area continued in the third quarter. Appraisal of the Akasa-2A tested well and water injectivity test with Akasa-1 discovery well was done in quarter 3 and continued through quarter 4.
ii)
Production Production in H2 2013 from the Jubilee field was 16.63 million bbls as compared to 18.75 bbls in H1 2013 representing, an 11% decrease over H1 2013 production. This was as a result of a planned maintenance project on the Jubilee Field floating production, storage and offloading (FPSO) vessel which ended in late September. Average daily production per month decreased from 112,031 bopd in June to 93,791 bopd in December 2013. Figure 2. Jubilee Field Production Jul – Dec 2013 JUBILEE FIELD PRODUCTION JUL-DEC 2013( BBLS) 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000
(BBLS) 1,000,000 500,000 0 Jul-2013 Aug-2013 Sep-2013 Oct-2013 Nov-2013 Dec-2013
Source: GNPC
Page 4
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
Figure 3. Jubilee Field Production Jan – Jun 2013
JUBILEE FIELD PRODUCTION JAN-JUNE 2013( BBLS) 3,400,000 3,300,000 3,200,000 3,100,000 3,000,000
(BBLS) 2,900,000 2,800,000 2,700,000 Jan-2013 Feb-2013 Mar-2013 Apr-2013 May-2013 Jun-2013
Source: GNPC
3. CRUDE OIL LIFTING & ALLOCATION
a) July–December 2013 Lifting and Allocation
During the period under review, the Ghana Group (GNPC lifting on behalf of Government of Ghana), lifted three crude oil parcels (14th, 15th, 16th) with total cargo value of US$ 307.59 million compared to four lifting’s in the 1st half of the year 2013 with a total cargo value of US$ 422.77 million. Table 1 below outlines the details of the three liftings. TABLE 1. GHANA GROUP LIFTING AND ALLOCATION JUL 2013 - DEC 2013
TABLE 1 GHANA GROUP LIFTING AND ALLOCATION JUL 2013 - DEC 2013 NARRATION Actual (US$) Actual (US$) Actual (US$) LIFTING 13th Lifting*** 14th Lifting 15th Lifting LIFTING DATE 23-Jun-13 11-Aug-13 1-Nov-13 PROCEEDS RECEIVED 103,296,344.64 111,093,923.70 94,720,758.72 Other Receipts* 53,280,658.58 110,554.00 44,768,566.00 TOTAL 156,577,003.22 111,204,477.70 139,489,324.72 ALLOCATION: ANNUAL BUDGET FUNDING AMOUNT 68,299,391.66 68,299,391.66 GNPC 32,687,149.41 35,141,266.30 36,230,615.63 GHANA STABILISATION FUND 86,722,897.67 5,434,673.82 24,471,522.20 GHANA HERITAGE FUND 37,166,956.14 2,329,145.92 10,487,795.23 TOTAL 156,577,003.22 111,204,477.70 139,489,324.72
Actual (US$) 16th Lifting** 20-Dec-13 101,775,877.39
*** Proceeds for 13th lifting reported in H1 2013 report
Page 5
410,886,904.45 98,031,145.00
101,775,877.39 -
-
* Other Petroleum Reciepts includes: Taxes, Royalties, Surface Rentals shown in Table 4 **Proceeds received in Jan 2014
Total (US$)
136,598,783.32 104,059,031.34 116,629,093.69 49,983,897.29
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
The lifting proceeds for H2 2013 were allocated as follows: The Annual Budget Fund Amount (ABFA) received an amount of US$136.60 million for H2 in support of 2013 budget. The same amount was received by ABFA in H1 of 2013. GNPC received an amount of US$104.05 million (Carried and Participating interest(CAPI) & Equity Finance) for H2 of 2013 and represents 12.0% decrease against H1 2013 ( US$118.26 million). The Ghana Stabilisation Fund and the Ghana Heritage Fund received US$116.63 million and US$49.98 million, respectively, for H2 2013 compared to US$129.10 million and US$55.33 million for H1 of 2013.
Lifting and Allocation from inception Since inception to December 31, 2013, Ghana Group has lifted 16 parcels of crude oil with a net cargo value of US$1.61 billion. .
TABLE 2 TABLE 2: TOTAL LIFTINGS 2013 H1 Quarters US$ Quarters Jan 112,667,389.05 Jul Feb Aug Mar Sept Apr 108,207,352.62 Oct May Nov Jun 103,296,344.64 Dec* TOTAL 324,171,086.31 * Amount to be recieved on the 20th of Jan 2014
TABLE 3: PETROLEUM REVENUE QUARTERLY ALLOCATION FOR 2013 H1 & H2 ALLOCATION H2 (2013) Jul Aug Sept Oct Nov Dec TOTAL H1 (2013) Jan Feb Mar Apr May Jun TOTAL
GNPC US$
ABFA US$
STAB US$
HERT US$
TOTAL US$
32,687,149.41 35,141,266.30
68,299,391.66
86,722,897.67 5,434,673.82
37,166,956.14 2,329,145.92
156,577,003.22 111,204,477.70
36,230,615.63 104,059,031.34
68,299,391.66 136,598,783.32
24,471,522.20 116,629,093.69
10,487,795.23 49,983,897.29
139,489,324.72 407,270,805.64
42,342,760.10
68,299,391.66
29,812,640.61
12,776,845.98
153,231,638.35
48,732,304.09
20,885,273.18
108,105,062.47
50,559,663.32 129,104,608.02
21,668,427.14 55,330,546.30
177,959,581.66 439,296,282.48
38,487,485.20 37,432,099.54 118,262,344.84
68,299,391.66 136,598,783.32
Page 6
2013 H2 US$ 111,093,923.70
94,720,758.72 101,775,877.39 307,590,559.81
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
Figure 6: ALLOCATION OF GHANA GROUP PROCEEDS FROM INCEPTION
0.01% $200,000
ABFA 36% $661,235,605
1
7%, $126,950,251
17% $317,422,602
GH HERITAGE
40% $726,707,094
GH STAB
GNPC
Mandatory Bal(GHAPET)
source: Bank of Ghana
Total lifting proceeds and other income allocated from inception to the end of December 2013 amounted to US$1.833 billion. ABFA has received a total of US$726.7 million representing 39.66% of the total revenue since inception. GNPC has received a total amount of US$661.2 representing 36.08% of total revenue. GSF and GHF have each received an amount of US$317.42 (17.32%) and US$126.95 (6.93%) respectively (Figure 6). SURFACE RENTALS, ROYALTIES AND TAXES
TABLE 4. SURFACE RENTALS, ROYALTIES & TAXES RECEIVED JUL - DEC 2013 TABLE 4: CORPORATE TAXES & ROYALTY RECEIVED JULY- DECEMBER 2013 Value Date Ordering Institution Amount Paid Narration (US$) 2013 26-Aug-13 Saltpond Offshore Prod Comp 110,554.00 Royalty (3%) TOTAL 6-Aug-13 9-Aug-13 9-Aug-13 29-Oct-13 30-Oct-13 31-Oct-13
KOSMOS TULLOW GH LIMITED ANARDARKO TULLOW GH LIMITED KOSMOS ANARDARKO TOTAL
TOTAL
110,554.00 20,862,618.00 Corporate Tax 17,986,677.00 Corporate Tax 14,302,730.00 Corporate Tax
9,685,889.00 Corporate Tax 18,220,994.00 Corporate Tax 16,861,683.00 Corporate Tax 97,920,591.00 98,031,145.00
Page 7
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
Other petroleum receipts comprising corporate taxes, royalties and surface rentals received in H2 amounted to US$98.03 million as compared to US$119.8 million received in H1. Details are as shown in Table 4 above. A surface rental bill dated February 21, 2013 for US$67,438.36 was outstanding in the name of Oranto/Stone Energy. TABLE 5 OUTSTANDING INVOICES (SURFACE RENTALS) JAN-JUL 2013 Date of Invoice Period Name of Company Amount Invoiced (US$) 21-Feb-13 Jan- Dec 2013 ORANTO/STONE ENERGY 67,438.36 TOTAL AMOUNT RECEIVABLE 67,438.36
4.
PORTFOLIO PERFORMANCE
In the second half of 2013, the Ghana Petroleum Funds returned 0.48 percent compared to 0.30 percent net of fees for the first half of 2013. In absolute terms, total return on the funds amounted to US$1,734,764.17 compared to a return of US$784,377.30 for first half of 2013. Contribution by GSF and GHF was US$786,325.61 and US$948,438.56 respectively compared to US$615,538.16 and US$168,839.14 in H1 2013. Both funds contributed positive returns to the Ghana Petroleum Funds. Details are shown in figures 7,8 and table 5). In H2, 2013, monetary authorities took divergent policy actions. The ECB lowered the interest rate on main refinancing operations by 25 basis points to 0.25%. The concern was further diminishing price pressures in the euro area over the medium term. The FOMC reduced the pace of Quantitative Easing from US$85 billion a month to US$75 billion a month given the improved labor market in the U.S. While the ECB rate cut caused core and peripheral bonds to rally, the FOMC December 19th, 2013 taper triggered a sell-off with the 10 year US Treasury note yield ending the year at 3.028%.
Page 8
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
Figure 7: Return on Ghana Stabilisation Fund Jul – Dec 2013
Returns in USD
Ghana Stabilization Fund
$ USD
H1 2013 H2 2013 Since Inception
H1 2013
H2 2013
Since Inception
615,538.16
786,325.61
1,611,551.08
Source: Bank of Ghana
Figure 8: Return on Ghana Heritage Fund Jan – June 2013
Returns in USD
Ghana Heritage Fund
$ USD
H1 2013 H2 2013 Since inception
H1 2013
H2 2013
Since inception
168,839.17
948,438.56
1,175,691.10
Source: Bank of Ghana
Page 9
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
table 5 Ghana Petroleum Funds- Semi Annual Report: JULY1 - DEC 31 2013 GHANA PETROLEUM FUNDS GHANA STABILISATION FUND ACCOUNT US$ Opening book Value (1 July 2013)
201,618,733.86
Receipt during the period
116,629,093.69
Bank Charges
(6,830.44)
793,156.05
Income from Investments Closing book Value (31 Dec 2013)
319,034,153.16
Net Income for the 1st Half of 2013 comprised the Following INCOME
US$
793,156.05
Investment Income Less: Bank Charges
(6,830.44)
Net Return for the Period
786,325.61
GHANA HERITAGE FUND ACCOUNT US$ Opening book Value (1 July 2013)
77,193,606.55
Receipt during the period
49,983,897.29
Bank charges
(7,627.76)
956,066.32
Income from Investments Closing book Value (31 Dec 2013)
128,125,942.40
Net Income for the 1st Half of 2013 comprised the Following: INCOME
US$
956,066.32
Investment Income Less: Bank Charges
(7,627.76)
Net Return for the Period
948,438.56
Page 10
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
5. PETROLEUM HOLDING FUND
As at December 31, 2013 the Petroleum Holding Fund Account (GHAPET) held a balance of US$296,069.48. The balance on the account comprised interest earned on PHF since inception of US$96,069.48 a mandatory balance of US$200,000.00 (See Schedule 3 attached).
6. CONCLUSION The GSF and GHF continued to earn positive returns during the second half of 2013. The value of the Ghana Stabilisation Fund increased by US$0.786 million in H2 to US$319.034 million compared to US$0.615 million in H1, and the Ghana Heritage Fund increased by US$0.948 million in H2 to US$128.126 million compared to US$ 0.168 million in H1.
Prepared by Ghana Petroleum Funds Secretariat, Bank of Ghana
February 06, 2014
Page 11
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT Schedule 1
(A) INFLOWS: Date LIFTING PROCEEDS
PETROLEUM ACCOUNT AT FEDERAL RESERVE BANK OF NEW YORK Value of Volume Of Crude Shipped (BBLS) Shipment (US$) Notes
APRIL 2011 TO DEC 2012 4th February 2013 3rd April 2013
8,861,223 995,550 996,201
20th May 2013
995,520
23th June 2013
995,685
11th August 2013
994,966
3rd December 2013
898,338
985,590,355.05 112,667,389.05 108,207,352.62
1 2 3
98,594,309.76
4
103,296,344.64
111,093,923.70 94,720,758.72
5 6 7
OTHER INCOME MAR 2012 TO DEC 2012 7th February 2013 8th February 2013 11th February 2013 22nd February 2013 26th April 2013 29th April 2013 6th May 2013 9th May 2013 13th May 2013 13th May 2013 13th May 2013 23rd May 2013 23rd May 2013 28th May 2013 25th June 2013
8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
26th July 2013
24
29th July 2013
25
31st July 2013
26
26th August 2013
27
31st October 2013
28
TOTAL (B) DISBURSEMENTS MAY 2011 TO DEC 2012 20th FEB 2013 18th APR 2013 13th JUN 2013 13th SEPT 2013
GNPC Equity GNPC Equity GNPC Equity GNPC Equity GNPC Equity GNPC Equity GNPC Equity
GNPC 40% GNPC 40% GNPC 40% GNPC 40% GNPC 40% GNPC 40% GNPC 40%
Financing Cost for 1ST TO 9TH lifting Financing Cost for 10th lifting Financing Cost for 11th lifting Financing Cost for 12th lifting Financing Cost for 13th lifting Financing Cost for 14th lifting Financing Cost for 15th lifting
APRL 2011 TO DEC 2012 20th FEB 2013 13th JUN 2013 13th SEPT 2013 17th OCT 2013 23rd DEC 2013
Annual Annual Annual Annual Annual Annual
CAPI CAPI CAPI CAPI CAPI CAPI CAPI
52,491.80 20,862,618.00 17,986,677.00 14,302,730.00 110,554.00 44,768,566.00
12,258,684.00 14,957,392.00 4,787,197.00 5,126,315.18 14,818,316.00 325,435,195.82
for 1ST TO 9TH lifting for 10TH lifting for 11TH lifting for 12TH lifting for 13TH lifting for 14TH lifting for 15TH lifting
181,798,825.22 25,970,881.10 26,228,801.20 22,474,707.54 27,899,952.41 30,041,951.12 21,412,299.63 335,827,418.22 453,509,518.42 68,299,391.66 68,299,391.66 68,299,391.66 68,299,399.66 726,707,093.06
Sub Total
Ghana Heritage Ghana Heritage Ghana Heritage Ghana Heritage Ghana Heritage Ghana Heritage Ghana Heritage
906,567.46 40,210,099.56 16,985.00 16,953.90 63,866.95 15,921,230.00 39,026,706.00 60,000.00 23,906,871.00 82,189.73 43,501.00 555.00 285,457.53 38,761.64 76,141.78
16,371,879.00
Budget Funding Amount for 1ST TO 9TH lifting Budget Funding Amount for 10TH lifting Budget Funding Amount for 12TH lifting Budget Funding Amount for 13TH lifting Budget Funding Amount for 14TH lifting Budget Funding Amount for 15TH lifting
Transfer to Transfer to Transfer to Transfer to Transfer to Transfer to Transfer to
108,207,352.62 98,594,309.76 103,296,344.64 111,093,923.70 94,720,758.72
257,115,412.64
Sub Total
NOV 2011 TO AUG 2012 20th FEB 2013 18th APR 2013 13th JUN 2013 13th SEPT 2013 17th OCT 2013 23rd DEC 2013
985,196,046.53 112,667,389.05
1,832,515,648.37
Sub Total
AUG 2011 TO DEC 2012 20th FEB 2013 18th APR 2013 13th JUN 2013 13th SEPT 2013 17th OCT 2013 23rd DEC 2013
(US$)
& stabilisation & stabilisation & stabilisation & stabilisation & stabilisation & stabilisation & stabilisation
1st - 9th 10th Lifting 10th Lifting 12th Lifting 13th Lifting 14th Lifting 15th Lifting
93,324,707.97 42,589,486.59 69,617,577.27 72,228,090.46 123,889,853.81 7,763,819.74 34,959,317.43
444,372,853.27
Sub Total TOTAL DISBURSEMENTS BALANCE ON ACCOUNT INTEREST EARNED TOTAL BALANCE ON ACCOUNT
Notes 1. April 2011 to Dec 2012 Proceeds 2.Proceeds for tenth oil lift 3. Proceeds for eleventh oil lift 4. Proceeds for twelve oil lift 5. Proceeds for thirteenth oil lift 6. Proceeds for fourteenth oil lift 7. Proceeds for fifteenth oil lift 8. Other Income from March 2012 to Dec 2012 9. Corporate tax by by all partners 10. 3% Royalties from LUSHANN INT GH LTD 11.Surface Rental payment from KOSMOS ENERGY GHANA 12.Surface Rental payment from TULLOW 13.Corporate tax by Kosmos 14. Corporate tax by Tullow 15.Surface Rental payment from OPHIR GHANA LIMITED 16. Corporate tax by Anardarko 17.Surface Rental payment from HESS GHANA EXPLORATION LTD 18. Royalties for 2013 Lushann International Ghana(Saltpond) 19.Surface rental for 2013 Lushann International Ghana(Saltpond) 20.Surface rental from ENI-keta jv account 21.Surface rental from ENI-EP LTD OCTP JOINT ACCOUNT 22. Lukoil overseas Ghana Ltd for Surface Rental 23. Surface rental from Surface Rental from Tullow 24. Corporate Tax by Kosmos for Quarter 2 2013 25. Corporate tax by Tullow Ghana Limited for Quarter 2 2013 26. Corporate tax by Anadarko WCTP company for Quarter 2 2013 27. Royalties for 2013 Lushann International Ghana (Saltpond) 28. Corporate tax from Tullow, Kosmos, Anardarko
Page 12
29 30 31
1,832,342,560.37 200,000.00 96,069.48 296,069.48
Jubilee Oil Field
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
CONTENTS 1.
INTRODUCTION ................................................................................................................................................... 3
2.
OIL MARKET REVIEW......................................................................................................................................... 3
A)
WORLD MARKET REVIEW................................................................................................................................. 3
B)
DEVELOPMENTS IN THE GHANAIAN OIL & GAS SECTOR......................................................................... 3
I)
EXPLORATION DISCOVERIES .......................................................................................................................... 3
II)
PRODUCTION ....................................................................................................................................................... 4
3.
CRUDE OIL LIFTING & ALLOCATION .............................................................................................................. 5
A)
JULY–DECEMBER 2013 LIFTING AND ALLOCATION .................................................................................. 5
4.
SURFACE RENTALS, ROYALTIES AND TAXES ............................................................................................ 7
5.
PORTFOLIO PERFORMANCE ........................................................................................................................... 8
6.
PETROLEUM HOLDING FUND ........................................................................................................................ 11
7.
CONCLUSION ..................................................................................................................................................... 11
ABBREVIATIONS: ABFA: bbl/d: bbls: Brent Crude: bopd. CAPI: CDS: ECB: FOMC: FPSO: GHAPET: GHF: GSF: GNPC: mb/d: MTAB: OPEC: PBOC: PHF: PRMA: TEN: WTI:
Annual Budget Funding Amount barrels per day barrels of oil Price Index for light sweet crude oil sourced from North sea barrels of oil per day Carried and Participating Interest Credit Default Swaps European Central Bank Federal Open Market Committee Floating, Production, Storage and Offloading vessel Ghana Petroleum Holding Fund Account at Federal Reserve Bank of New York Ghana Heritage Fund Ghana Stabilisation Fund Ghana National Petroleum Corporation Million barrels per day Mahogany, Teak, Akasa and Banda oil wells Organization of the Petroleum Exporting Countries People’s Bank of China Petroleum Holding Fund Petroleum Revenue Management Act 2011 (815) Tweneboa, Enyenra, Ntomme oil wells West Texas Intermediate (Benchmark for light sweet crude oil from the Americas)
Page 2
GHANA PETROLEUM FUNDS SECRETARIAT 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 second half of 2013 ended December 31, 2013.
2. OIL MARKET REVIEW a)
World Market Review
Figure 1: Spot Brent Crude Price July 1 – December 31, 2013
Source: Bloomberg
Second half of 2013(H2) started with Brent crude priced at US$102.76. The Price rose to US$118.11 on August 28, 2013 which was the highest price attained in the second half of 2013. Brent crude fell and ended the year on December 31, 2013 at the price of US$110.82. The Commodity is forecast to trade range bound between US$102.16 and US$106.27 for 2014.
b) Developments in the Ghanaian Oil & Gas Sector
i)
Exploration Discoveries
Tweneboa-Enyenra-Ntomme (TEN) which represents the second major deep oil development project in Ghana is forecast to deliver its first oil in 2016 with a daily production output of 80,000 barrels. Major contracts for the Tweneboa-Enyenra-Ntomme (TEN) project have been awarded including the FPSO subsea systems and others by the development partners. Page 3
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
The expansion of the gas handling capacity associated with the Jubilee FPSO and a third gas injection well enhancement was slated to have been completed in the fourth quarter. This enhancement was meant to have increased daily production to 120,000 barrels of oil per day. Appraisal of the Mahogany-Teak-Akasa (MTA) pre-development area continued in the third quarter. Appraisal of the Akasa-2A tested well and water injectivity test with Akasa-1 discovery well was done in quarter 3 and continued through quarter 4.
ii)
Production Production in H2 2013 from the Jubilee field was 16.63 million bbls as compared to 18.75 bbls in H1 2013 representing, an 11% decrease over H1 2013 production. This was as a result of a planned maintenance project on the Jubilee Field floating production, storage and offloading (FPSO) vessel which ended in late September. Average daily production per month decreased from 112,031 bopd in June to 93,791 bopd in December 2013. Figure 2. Jubilee Field Production Jul – Dec 2013 JUBILEE FIELD PRODUCTION JUL-DEC 2013( BBLS) 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000
(BBLS) 1,000,000 500,000 0 Jul-2013 Aug-2013 Sep-2013 Oct-2013 Nov-2013 Dec-2013
Source: GNPC
Page 4
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
Figure 3. Jubilee Field Production Jan – Jun 2013
JUBILEE FIELD PRODUCTION JAN-JUNE 2013( BBLS) 3,400,000 3,300,000 3,200,000 3,100,000 3,000,000
(BBLS) 2,900,000 2,800,000 2,700,000 Jan-2013 Feb-2013 Mar-2013 Apr-2013 May-2013 Jun-2013
Source: GNPC
3. CRUDE OIL LIFTING & ALLOCATION
a) July–December 2013 Lifting and Allocation
During the period under review, the Ghana Group (GNPC lifting on behalf of Government of Ghana), lifted three crude oil parcels (14th, 15th, 16th) with total cargo value of US$ 307.59 million compared to four lifting’s in the 1st half of the year 2013 with a total cargo value of US$ 422.77 million. Table 1 below outlines the details of the three liftings. TABLE 1. GHANA GROUP LIFTING AND ALLOCATION JUL 2013 - DEC 2013
TABLE 1 GHANA GROUP LIFTING AND ALLOCATION JUL 2013 - DEC 2013 NARRATION Actual (US$) Actual (US$) Actual (US$) LIFTING 13th Lifting*** 14th Lifting 15th Lifting LIFTING DATE 23-Jun-13 11-Aug-13 1-Nov-13 PROCEEDS RECEIVED 103,296,344.64 111,093,923.70 94,720,758.72 Other Receipts* 53,280,658.58 110,554.00 44,768,566.00 TOTAL 156,577,003.22 111,204,477.70 139,489,324.72 ALLOCATION: ANNUAL BUDGET FUNDING AMOUNT 68,299,391.66 68,299,391.66 GNPC 32,687,149.41 35,141,266.30 36,230,615.63 GHANA STABILISATION FUND 86,722,897.67 5,434,673.82 24,471,522.20 GHANA HERITAGE FUND 37,166,956.14 2,329,145.92 10,487,795.23 TOTAL 156,577,003.22 111,204,477.70 139,489,324.72
Actual (US$) 16th Lifting** 20-Dec-13 101,775,877.39
*** Proceeds for 13th lifting reported in H1 2013 report
Page 5
410,886,904.45 98,031,145.00
101,775,877.39 -
-
* Other Petroleum Reciepts includes: Taxes, Royalties, Surface Rentals shown in Table 4 **Proceeds received in Jan 2014
Total (US$)
136,598,783.32 104,059,031.34 116,629,093.69 49,983,897.29
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
The lifting proceeds for H2 2013 were allocated as follows: The Annual Budget Fund Amount (ABFA) received an amount of US$136.60 million for H2 in support of 2013 budget. The same amount was received by ABFA in H1 of 2013. GNPC received an amount of US$104.05 million (Carried and Participating interest(CAPI) & Equity Finance) for H2 of 2013 and represents 12.0% decrease against H1 2013 ( US$118.26 million). The Ghana Stabilisation Fund and the Ghana Heritage Fund received US$116.63 million and US$49.98 million, respectively, for H2 2013 compared to US$129.10 million and US$55.33 million for H1 of 2013.
Lifting and Allocation from inception Since inception to December 31, 2013, Ghana Group has lifted 16 parcels of crude oil with a net cargo value of US$1.61 billion. .
TABLE 2 TABLE 2: TOTAL LIFTINGS 2013 H1 Quarters US$ Quarters Jan 112,667,389.05 Jul Feb Aug Mar Sept Apr 108,207,352.62 Oct May Nov Jun 103,296,344.64 Dec* TOTAL 324,171,086.31 * Amount to be recieved on the 20th of Jan 2014
TABLE 3: PETROLEUM REVENUE QUARTERLY ALLOCATION FOR 2013 H1 & H2 ALLOCATION H2 (2013) Jul Aug Sept Oct Nov Dec TOTAL H1 (2013) Jan Feb Mar Apr May Jun TOTAL
GNPC US$
ABFA US$
STAB US$
HERT US$
TOTAL US$
32,687,149.41 35,141,266.30
68,299,391.66
86,722,897.67 5,434,673.82
37,166,956.14 2,329,145.92
156,577,003.22 111,204,477.70
36,230,615.63 104,059,031.34
68,299,391.66 136,598,783.32
24,471,522.20 116,629,093.69
10,487,795.23 49,983,897.29
139,489,324.72 407,270,805.64
42,342,760.10
68,299,391.66
29,812,640.61
12,776,845.98
153,231,638.35
48,732,304.09
20,885,273.18
108,105,062.47
50,559,663.32 129,104,608.02
21,668,427.14 55,330,546.30
177,959,581.66 439,296,282.48
38,487,485.20 37,432,099.54 118,262,344.84
68,299,391.66 136,598,783.32
Page 6
2013 H2 US$ 111,093,923.70
94,720,758.72 101,775,877.39 307,590,559.81
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
Figure 6: ALLOCATION OF GHANA GROUP PROCEEDS FROM INCEPTION
0.01% $200,000
ABFA 36% $661,235,605
1
7%, $126,950,251
17% $317,422,602
GH HERITAGE
40% $726,707,094
GH STAB
GNPC
Mandatory Bal(GHAPET)
source: Bank of Ghana
Total lifting proceeds and other income allocated from inception to the end of December 2013 amounted to US$1.833 billion. ABFA has received a total of US$726.7 million representing 39.66% of the total revenue since inception. GNPC has received a total amount of US$661.2 representing 36.08% of total revenue. GSF and GHF have each received an amount of US$317.42 (17.32%) and US$126.95 (6.93%) respectively (Figure 6). SURFACE RENTALS, ROYALTIES AND TAXES
TABLE 4. SURFACE RENTALS, ROYALTIES & TAXES RECEIVED JUL - DEC 2013 TABLE 4: CORPORATE TAXES & ROYALTY RECEIVED JULY- DECEMBER 2013 Value Date Ordering Institution Amount Paid Narration (US$) 2013 26-Aug-13 Saltpond Offshore Prod Comp 110,554.00 Royalty (3%) TOTAL 6-Aug-13 9-Aug-13 9-Aug-13 29-Oct-13 30-Oct-13 31-Oct-13
KOSMOS TULLOW GH LIMITED ANARDARKO TULLOW GH LIMITED KOSMOS ANARDARKO TOTAL
TOTAL
110,554.00 20,862,618.00 Corporate Tax 17,986,677.00 Corporate Tax 14,302,730.00 Corporate Tax
9,685,889.00 Corporate Tax 18,220,994.00 Corporate Tax 16,861,683.00 Corporate Tax 97,920,591.00 98,031,145.00
Page 7
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
Other petroleum receipts comprising corporate taxes, royalties and surface rentals received in H2 amounted to US$98.03 million as compared to US$119.8 million received in H1. Details are as shown in Table 4 above. A surface rental bill dated February 21, 2013 for US$67,438.36 was outstanding in the name of Oranto/Stone Energy. TABLE 5 OUTSTANDING INVOICES (SURFACE RENTALS) JAN-JUL 2013 Date of Invoice Period Name of Company Amount Invoiced (US$) 21-Feb-13 Jan- Dec 2013 ORANTO/STONE ENERGY 67,438.36 TOTAL AMOUNT RECEIVABLE 67,438.36
4.
PORTFOLIO PERFORMANCE
In the second half of 2013, the Ghana Petroleum Funds returned 0.48 percent compared to 0.30 percent net of fees for the first half of 2013. In absolute terms, total return on the funds amounted to US$1,734,764.17 compared to a return of US$784,377.30 for first half of 2013. Contribution by GSF and GHF was US$786,325.61 and US$948,438.56 respectively compared to US$615,538.16 and US$168,839.14 in H1 2013. Both funds contributed positive returns to the Ghana Petroleum Funds. Details are shown in figures 7,8 and table 5). In H2, 2013, monetary authorities took divergent policy actions. The ECB lowered the interest rate on main refinancing operations by 25 basis points to 0.25%. The concern was further diminishing price pressures in the euro area over the medium term. The FOMC reduced the pace of Quantitative Easing from US$85 billion a month to US$75 billion a month given the improved labor market in the U.S. While the ECB rate cut caused core and peripheral bonds to rally, the FOMC December 19th, 2013 taper triggered a sell-off with the 10 year US Treasury note yield ending the year at 3.028%.
Page 8
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
Figure 7: Return on Ghana Stabilisation Fund Jul – Dec 2013
Returns in USD
Ghana Stabilization Fund
$ USD
H1 2013 H2 2013 Since Inception
H1 2013
H2 2013
Since Inception
615,538.16
786,325.61
1,611,551.08
Source: Bank of Ghana
Figure 8: Return on Ghana Heritage Fund Jan – June 2013
Returns in USD
Ghana Heritage Fund
$ USD
H1 2013 H2 2013 Since inception
H1 2013
H2 2013
Since inception
168,839.17
948,438.56
1,175,691.10
Source: Bank of Ghana
Page 9
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
table 5 Ghana Petroleum Funds- Semi Annual Report: JULY1 - DEC 31 2013 GHANA PETROLEUM FUNDS GHANA STABILISATION FUND ACCOUNT US$ Opening book Value (1 July 2013)
201,618,733.86
Receipt during the period
116,629,093.69
Bank Charges
(6,830.44)
793,156.05
Income from Investments Closing book Value (31 Dec 2013)
319,034,153.16
Net Income for the 1st Half of 2013 comprised the Following INCOME
US$
793,156.05
Investment Income Less: Bank Charges
(6,830.44)
Net Return for the Period
786,325.61
GHANA HERITAGE FUND ACCOUNT US$ Opening book Value (1 July 2013)
77,193,606.55
Receipt during the period
49,983,897.29
Bank charges
(7,627.76)
956,066.32
Income from Investments Closing book Value (31 Dec 2013)
128,125,942.40
Net Income for the 1st Half of 2013 comprised the Following: INCOME
US$
956,066.32
Investment Income Less: Bank Charges
(7,627.76)
Net Return for the Period
948,438.56
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GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT
5. PETROLEUM HOLDING FUND
As at December 31, 2013 the Petroleum Holding Fund Account (GHAPET) held a balance of US$296,069.48. The balance on the account comprised interest earned on PHF since inception of US$96,069.48 a mandatory balance of US$200,000.00 (See Schedule 3 attached).
6. CONCLUSION The GSF and GHF continued to earn positive returns during the second half of 2013. The value of the Ghana Stabilisation Fund increased by US$0.786 million in H2 to US$319.034 million compared to US$0.615 million in H1, and the Ghana Heritage Fund increased by US$0.948 million in H2 to US$128.126 million compared to US$ 0.168 million in H1.
Prepared by Ghana Petroleum Funds Secretariat, Bank of Ghana
February 06, 2014
Page 11
GHANA PETROLEUM FUNDS SECRETARIAT SEMI-ANNUAL REPORT Schedule 1
(A) INFLOWS: Date LIFTING PROCEEDS
PETROLEUM ACCOUNT AT FEDERAL RESERVE BANK OF NEW YORK Value of Volume Of Crude Shipped (BBLS) Shipment (US$) Notes
APRIL 2011 TO DEC 2012 4th February 2013 3rd April 2013
8,861,223 995,550 996,201
20th May 2013
995,520
23th June 2013
995,685
11th August 2013
994,966
3rd December 2013
898,338
985,590,355.05 112,667,389.05 108,207,352.62
1 2 3
98,594,309.76
4
103,296,344.64
111,093,923.70 94,720,758.72
5 6 7
OTHER INCOME MAR 2012 TO DEC 2012 7th February 2013 8th February 2013 11th February 2013 22nd February 2013 26th April 2013 29th April 2013 6th May 2013 9th May 2013 13th May 2013 13th May 2013 13th May 2013 23rd May 2013 23rd May 2013 28th May 2013 25th June 2013
8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
26th July 2013
24
29th July 2013
25
31st July 2013
26
26th August 2013
27
31st October 2013
28
TOTAL (B) DISBURSEMENTS MAY 2011 TO DEC 2012 20th FEB 2013 18th APR 2013 13th JUN 2013 13th SEPT 2013
GNPC Equity GNPC Equity GNPC Equity GNPC Equity GNPC Equity GNPC Equity GNPC Equity
GNPC 40% GNPC 40% GNPC 40% GNPC 40% GNPC 40% GNPC 40% GNPC 40%
Financing Cost for 1ST TO 9TH lifting Financing Cost for 10th lifting Financing Cost for 11th lifting Financing Cost for 12th lifting Financing Cost for 13th lifting Financing Cost for 14th lifting Financing Cost for 15th lifting
APRL 2011 TO DEC 2012 20th FEB 2013 13th JUN 2013 13th SEPT 2013 17th OCT 2013 23rd DEC 2013
Annual Annual Annual Annual Annual Annual
CAPI CAPI CAPI CAPI CAPI CAPI CAPI
52,491.80 20,862,618.00 17,986,677.00 14,302,730.00 110,554.00 44,768,566.00
12,258,684.00 14,957,392.00 4,787,197.00 5,126,315.18 14,818,316.00 325,435,195.82
for 1ST TO 9TH lifting for 10TH lifting for 11TH lifting for 12TH lifting for 13TH lifting for 14TH lifting for 15TH lifting
181,798,825.22 25,970,881.10 26,228,801.20 22,474,707.54 27,899,952.41 30,041,951.12 21,412,299.63 335,827,418.22 453,509,518.42 68,299,391.66 68,299,391.66 68,299,391.66 68,299,399.66 726,707,093.06
Sub Total
Ghana Heritage Ghana Heritage Ghana Heritage Ghana Heritage Ghana Heritage Ghana Heritage Ghana Heritage
906,567.46 40,210,099.56 16,985.00 16,953.90 63,866.95 15,921,230.00 39,026,706.00 60,000.00 23,906,871.00 82,189.73 43,501.00 555.00 285,457.53 38,761.64 76,141.78
16,371,879.00
Budget Funding Amount for 1ST TO 9TH lifting Budget Funding Amount for 10TH lifting Budget Funding Amount for 12TH lifting Budget Funding Amount for 13TH lifting Budget Funding Amount for 14TH lifting Budget Funding Amount for 15TH lifting
Transfer to Transfer to Transfer to Transfer to Transfer to Transfer to Transfer to
108,207,352.62 98,594,309.76 103,296,344.64 111,093,923.70 94,720,758.72
257,115,412.64
Sub Total
NOV 2011 TO AUG 2012 20th FEB 2013 18th APR 2013 13th JUN 2013 13th SEPT 2013 17th OCT 2013 23rd DEC 2013
985,196,046.53 112,667,389.05
1,832,515,648.37
Sub Total
AUG 2011 TO DEC 2012 20th FEB 2013 18th APR 2013 13th JUN 2013 13th SEPT 2013 17th OCT 2013 23rd DEC 2013
(US$)
& stabilisation & stabilisation & stabilisation & stabilisation & stabilisation & stabilisation & stabilisation
1st - 9th 10th Lifting 10th Lifting 12th Lifting 13th Lifting 14th Lifting 15th Lifting
93,324,707.97 42,589,486.59 69,617,577.27 72,228,090.46 123,889,853.81 7,763,819.74 34,959,317.43
444,372,853.27
Sub Total TOTAL DISBURSEMENTS BALANCE ON ACCOUNT INTEREST EARNED TOTAL BALANCE ON ACCOUNT
Notes 1. April 2011 to Dec 2012 Proceeds 2.Proceeds for tenth oil lift 3. Proceeds for eleventh oil lift 4. Proceeds for twelve oil lift 5. Proceeds for thirteenth oil lift 6. Proceeds for fourteenth oil lift 7. Proceeds for fifteenth oil lift 8. Other Income from March 2012 to Dec 2012 9. Corporate tax by by all partners 10. 3% Royalties from LUSHANN INT GH LTD 11.Surface Rental payment from KOSMOS ENERGY GHANA 12.Surface Rental payment from TULLOW 13.Corporate tax by Kosmos 14. Corporate tax by Tullow 15.Surface Rental payment from OPHIR GHANA LIMITED 16. Corporate tax by Anardarko 17.Surface Rental payment from HESS GHANA EXPLORATION LTD 18. Royalties for 2013 Lushann International Ghana(Saltpond) 19.Surface rental for 2013 Lushann International Ghana(Saltpond) 20.Surface rental from ENI-keta jv account 21.Surface rental from ENI-EP LTD OCTP JOINT ACCOUNT 22. Lukoil overseas Ghana Ltd for Surface Rental 23. Surface rental from Surface Rental from Tullow 24. Corporate Tax by Kosmos for Quarter 2 2013 25. Corporate tax by Tullow Ghana Limited for Quarter 2 2013 26. Corporate tax by Anadarko WCTP company for Quarter 2 2013 27. Royalties for 2013 Lushann International Ghana (Saltpond) 28. Corporate tax from Tullow, Kosmos, Anardarko
Page 12
29 30 31
1,832,342,560.37 200,000.00 96,069.48 296,069.48
