Management

• Ghana Revenue Authority (GRA) - Collects taxes, royalties, and other fiscal payments from petroleum operations
• Ghana National Petroleum Corporation (GNPC) - Receives production entitlements on behalf of the state

• Royalties - Fixed percentage of gross production (typically 5% for oil, 3-5% for gas)
• Carried & Participating Interest - State's share in petroleum operations (minimum 15%)
• Corporate Income Tax - 35% on petroleum operations
• Additional Oil Entitlements (AOE) - Progressive resource rent tax based on profitability
• Surface Rentals - Charges for the area covered by petroleum agreements

Revenue collection is governed by:

• Petroleum Revenue Management Act (PRMA), 2011 (Act 815)
• Petroleum (Exploration and Production) Act, 2016 (Act 919)
• Income Tax Act, 2015 (Act 896)

The Petroleum Holding Fund (PHF) is a transitional fund established under Section 2 of the PRMA as the initial repository for all petroleum receipts. It serves as a clearinghouse before revenue is distributed according to the allocation formula.

The Bank of Ghana is responsible for operating the PHF, including:

• Receiving all petroleum revenues from the GRA and other sources
• Maintaining proper books of accounts and records
• Presenting reports on the PHF to the Minister of Finance
• Transferring funds according to the disbursement formula established by the PRMA

• No encumbrance or borrowing against the PHF is permitted
• No direct service of loans from the PHF
• Transfers out of the PHF must follow the allocation formula prescribed by the PRMA
• Maximum 7 working days holding period before transfers must be completed

The Ministry of Finance oversees the allocation of petroleum revenues from the PHF according to the formula prescribed by the PRMA:

• Ministry of Finance determines quarterly Benchmark Revenue
• Calculates percentages for each recipient according to the PRMA
• Issues transfer instructions to the Bank of Ghana
• The Bank of Ghana executes transfers to designated accounts

GNPC is Ghana's national oil company established by PNDC Law 64 of 1983. It receives 15% of petroleum revenues to fund its operations and investments.

• Equity Financing - Funding Ghana's participating interest in petroleum operations
• Exploration Activities - Investment in new exploration to discover additional petroleum reserves
• Technical Operations - Support for existing field development and production activities
• Capacity Building - Training and development of Ghanaian expertise in petroleum operations

• GNPC must submit annual program of activities to Parliament for approval
• Funding is capped at 30% of state's carried and participating interest
• Required to publish annual reports on fund utilization
• Subject to audit by the Auditor-General

The Annual Budget Funding Amount (ABFA) represents 70% of petroleum revenues allocated to support the national budget. It's designed to promote national development by supporting priority investment areas.

• A maximum of four priority areas must be selected for ABFA spending
• Priority areas are reviewed every three years
• At least 70% of the ABFA must fund public investment expenditures
• A minimum of 30% of the amount allocated for public investment must be spent on developing the agricultural sector

The Ghana Petroleum Funds (GPF) comprise 15% of petroleum revenues and are divided into two separate funds with distinct purposes:

• Bank of Ghana manages both funds according to investment guidelines
• Investment Advisory Committee provides guidance on investment strategy
• Funds are invested in qualifying instruments approved by the Minister of Finance
• Annual reports on fund performance are published

The Ghana Stabilisation Fund (GSF) is designed to cushion the impact on or sustain public expenditure capacity during periods of unanticipated petroleum revenue shortfalls.

• Receives 70% of the Ghana Petroleum Funds allocation (10.5% of total petroleum revenue)
• Managed for higher liquidity to enable quick access when needed
• Can be drawn upon when petroleum revenues fall below 25% of the forecast
• Maximum withdrawal in a financial year is 75% of the annual accrued amount
• Has a cap that when reached, excess funds are used to retire debt or allocated to contingency

The Stabilisation Fund is invested in:

• Short to medium-term highly liquid investments
• Low-risk securities and financial instruments
• Foreign currency assets to provide currency diversification

The Ghana Heritage Fund (GHF) serves as an endowment fund for future generations that will support development when petroleum reserves are depleted.

• Receives 30% of the Ghana Petroleum Funds allocation (4.5% of total petroleum revenue)
• No withdrawals permitted until petroleum reserves are depleted
• Principal and interest accumulated are preserved until petroleum reserves are exhausted
• Only Parliament can authorize use, and only after certification that petroleum reserves are depleted
• Annual returns are reinvested to grow the fund value

The Heritage Fund is invested in:

• Long-term higher-yielding investments
• Diversified portfolio including equities and other growth assets
• International financial instruments that provide geographic diversification
• Assets that offer protection against inflation

• Tema-Mpakadan Railway - Railway infrastructure development
• Free Senior High School Program - Education access initiative
• Pwalugu Multi-Purpose Dam - Energy and irrigation project
• Eastern Corridor Road - Major road infrastructure
• Agenda 111 Hospital Project - Healthcare infrastructure

Ghana's petroleum revenue management is subject to multiple layers of oversight to ensure transparency, accountability, and compliance with the PRMA.