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Forecasting Ghana's Oil Revenues for the 2015 Budget Using a Fiscal Model of the Jubilee Field

19 December 2014
Author
David Mihalyi
Download
Forecasting Oil Revenues for the 2015 Ghana Budget (PDF 930.13 KB)
Jubilee Model (XLSX 245.78 KB)
Countries
Ghana
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In order to help Ghanaian MPs and the general public understand the potential impact of volatile petroleum prices on the implementation of the 2015 budget, we have built an oil revenue forecasting model. The tool uses only publicly available data and information. It is provided in Microsoft Excel (.xlsx), and released under an open licence so that it can be used by anyone. It can also be edited ,refined, and updated as events in Ghana and the world evolve.

This modeling was only made possible due to the advanced state of oil sector disclosures in Ghana: contracts for the most important producing oil field (the Jubilee oil field) are published, the country is EITI compliant, national laws require transparency and regular reporting, and international oil companies such as Tullow and Kosmos disclose further key information.

Click here to enlarge

 

With a publicly available model, engaged citizens can calculate the impact of different price scenarios on Ghana’s 2015 budget. We have presented our findings at budget review hearings and to the Public Interest and Accountability Committee, an institution created by revenue management legislation to publicly monitor implementation of the law. And we will continue to engage with stakeholders to support effective planning and oversight of the budget throughout 2015.

The open model not only helps individuals understand the effects of petroleum revenues on the budget, but it also clarifies the dynamics of taxation from the Jubilee oil project, including petroleum contract implementation by the oil companies in the joint venture. If the model exposes a large shortfall in a particular revenue stream, that would flag the need for further investigation of revenues, costs and tax levies.

Despite our best efforts, this model still comes with important limitations compared to those of government authorities, oil companies and international financial institutions like the IMF and the World Bank, which have access to proprietary or privileged information. Although we are confident that our model captures magnitudes and trends with a reasonable degree of accuracy, it may be less precise because it is based solely on public information.

We also hope that the model will provide grounds for collaborative work and learning. We will henceforth continue working with stakeholders in Ghana to refine the model and encourage disclosure of additional open data. No model is perfect, and we welcome feedback from users.

Please be in touch with us at [email protected] (David Mihalyi).

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  • Topics
    Beneficial ownership
    Civic space
    Commodity prices
    Contract transparency and monitoring
    Coronavirus
    Corruption
    Economic diversification
    Energy transition
    Gender
    Global initiatives
    Legislation and regulation
    Licensing and negotiation
    Mandatory payment disclosure
    Measurement of environmental and social impacts
    Measurement of governance
    Open data
    Revenue management
    Revenue sharing
    Sovereign wealth funds
    State-owned enterprises
    Subnational governance
    Tax policy and revenue collection
  • Approach
    • Stakeholders
    • Natural Resource Charter
    • Regional knowledge hubs
  • Priority
    Countries
    • Colombia
    • Dem. Rep. of Congo
    • Ghana
    • Guinea
    • Mexico
    • Mongolia
    • Nigeria
    • Peru
    • Senegal
    • Tanzania
    • Tunisia
    • Uganda
  • Learning
    • Training
    • Primers
  • Analysis & Tools
    • Publications
    • Tools
    • Economic models
  • About Us
    • What we do
    • NRGI impact
    • Board of Directors
    • Emeritus Board Members
    • Advisory Council
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    • Careers and opportunities
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    • Contact us
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