Operational Results Of Jubilee Fields From 2011 - 31st March 2014 Under Current Prevailing System

'Minimum Government take' set by the US Government Accountability Office (GAO) is pegged at 42% of total revenue from oil production and it can rise above 60%. Minimum Government take is the total economic returns that accrues to the host Government from total production revenue by allowing it's oil and gas resources to be exploited under any fiscal arrangement or contract.

The total economics returns are made of royalties, taxes, bonuses, participation and carried interests and any other form of payments. Estimated Government take in sub Saharan Africa is between 44% - 85% (DCMNR 2006).

Applying the US - GAO 'minimum Government take' of 42% standard, Ghana should have earned US$4,425,769,922 to date under the current prevailing system - Modern Concession. However, what Ghana earned for 31/4 years as the minimum government take from the Jubilee fields was 19.82% representing US$2,089,530,547.

If Ghana had adopted a simple PSA and opted for Profit Oil only, US$5,026,409,329 would have been earned, representing 47.7% of total revenue.On the other hand if Ghana insisted taking Royalty and Profit Oil, US$5,235,052,735 would accrued to Ghana representing 49.68% of total revenue.

The earnings under PSA are taxes exclusive.

DAVID AGBEE

EXECUTIVE DIRECTOR

SOLOMON KWAWUKUME

SENIOR RESEARCH OFFICER

OIL AND GAS

Data source: Petroleum Receipts and Distribution Reports

Ministry of Finance and Economic Planning

DCMNR - Department of Communication, Marine and Natural Resources Dublin, Ireland

2014-07-30 093507