The Petroleum Commission says its regulatory interventions in Ghana’s upstream petroleum industry have generated about US$2.2 billion in savings and potential financial gains for the state.

The Commission says the amount represents savings and financial benefits secured through its assessment of field development plans, procurement and tender processes, contractors’ work programmes and budgets, as well as a recent audit of petroleum costs.

The interventions form part of the Commission’s mandate to ensure that Ghana derives maximum value from its hydrocarbon resources.

According to the Commission’s Chief Executive Officer, Emeafa Hardcastle, reviews of major field development plans have accounted for about US$2 billion of the reported savings.

She said the review of the Greater Jubilee Full Field Development Plan alone generated about US$1 billion in savings.

The review of the Jubilee Plan of Development Phase 1A resulted in about US$210 million in savings, while the review of the TEN Plan of Development generated approximately US$510 million.

A further US$200 million was saved through a review of costs associated with the OCTP SURF and T&I components.

“The Petroleum Commission has over the years maintained efficient stewardship of Ghana’s hydrocarbon resources and has saved the State millions of dollars,” Ms Hardcastle said.

She said the regulatory interventions had also contributed to “enhanced revenue to the State from exploitation of our hydrocarbons.”

Cost audits uncover US$229m in infractions

Beyond field development plans, the Commission said it continues to scrutinise procurement and tender processes to ensure that expenditure by upstream operators represents value for money.

Its regulatory oversight also extends to contractors’ work programmes and budgets, allowing the Commission to assess proposed expenditure against approved activities.

Ms Hardcastle further disclosed that a recent audit of petroleum costs identified US$229 million in infractions in one of Ghana’s contract areas.

She said the amount had subsequently been excluded from allowable petroleum costs, a move that could increase the state’s future receipts through Corporate Income Tax and Additional Oil Entitlement.

“These have since been struck out from the pool of allowable petroleum costs,” she said.

The Petroleum Commission said its regulatory interventions were aimed not only at safeguarding the state’s financial interests but also at strengthening accountability and efficiency within the upstream petroleum sector.

The disclosures were made as the Commission launched activities to mark its 15th anniversary.

The Commission also highlighted its contribution to increasing Ghanaian participation in the upstream petroleum industry, saying its regulatory work was helping to ensure that the benefits of the country’s oil and gas resources extended beyond direct petroleum revenues.