Ghana and other African countries like Angola, Senegal, Nigeria, Cameroon, and Nigeria are susceptible to oil revenue drop in the wake of international oil price drop and coronavirus. This means these countries are likely to experience an oil deficit or loss and/or a dip in revenue. The production of oil in these countries has reduced since the advent of coronavirus.
In Ghana, Kosmos Energy has been a major player in the oil industry including Springfield, Aker Energy, and others. Springfield recently discovered 1.5 billion barrels.
A reduction in the oil price on the international market which is caused by a coronavirus and falling production and depreciation of major trading currencies like the dollar and Pounds Sterling may affect oil revenue projections for these countries. The falling production was exacerbated by the dreadful coronavirus.
Ghana’s budget forecasted $58.66 oil price per barrel at the end of 2020 predictably may not be a reality if the prevailing market situations linger.
“If prices should stay around the US$30 mark, then the government is less likely to get half of the revenue that is projected. Already, we’ve seen Tullow cut back it’s production. So aside from the international fall in crude oil price that we have to match within selling our own bit of oil that we get as a country, production is also falling in our own shores,” said Paa Kwasi Anamua Sakyi, Executive Director at the Institute for Energy Security.