From 2011 – 31st March 2014 Under Current Prevailing System – Modern Concession
GHANA INSTITUTE OF GOVERNANCE AND SECURITY
US Dollars % of Total Revenue
Total Volume Lifted
Less Due to Ghana
1. Royalties, Carried & participation interests 16,601,892 1,819,327,713
2. Corporate taxes 268,938,415
3. Surface rentals 1,264,419
Total due to Ghana
Net Due to FOCs 79,068,693
“Minimum Government take” set by the US Government Accountability Office (GAO) is pegged at 42 per cent of total revenue from production and it can rise above 60 per cent. 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 per cent (DCMNR 2006).
Applying the US – GAO “minimum Government take” of 42 per cent 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 per cent 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 per cent 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 per cent of total revenue.
The earnings under PSA are taxes exclusive.