Ghana Loses Substantial Oil Revenue Due To Cash Call Default - Africa’s premier report on the oil, gas and energy landscape.

Ghana Loses Substantial Oil Revenue Due To Cash Call Default

There was no lifting by the Ghanaian National Petroleum Corporation (GNPC) in respect of Carried and Participating Interest (CAPI) on the Sankofa Gye Nyame (SGN) Field, in the first half of 2019.

The refusal to allow GNPC to lift crude was due to the Corporation’s inability to honour outstanding payments (plus interest) in respect of its equity participation in the Field.

This was the second time this was happening and it is significant because CAPI is where Ghana makes its highest revenue from oil and gas proceeds. In the first half of 2019, CAPI from the two other oil fields alone, delivered 48% of total receipt of $363Million, whereas Royalty and Company Income Tax brought in 17.86% and 33.35% respectively.

Throughout 2018, there was no lifting on the SGN Field in respect of CAPI, as the other partners lifted GNPC’s share (called the Ghana Group’s share) of 1,853,785 barrels, yielding $141,321,927, to offset unpaid cash calls.

Partners involved in the SGN Field, located in Offshore Cape Three Points (OCTP) Block, include the Italian explorer ENI (47.22%), operator of the asset; crude oil trader Vitol (37.78%), and Ghana National Petroleum Corporation (15%).


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