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Ghana Oil Boon Not Enough to Plug Budget Hole as Prices Drop

  • Average Brent price this year below nation’s forecasts
  • West African nation sees oil output climbing 39% in 2017
Updated on

A surge in Ghana’s oil output this year may do little to ease the West African nation’s fiscal strains as crude prices are lower than what it budgeted, eroding the gains from extra production.

This year’s average Brent crude price of $52 a barrel is below the $56 forecast in the budget, which could complicate the state’s plans to narrow the fiscal deficit. Output is set to climb by more than a third in 2017 from a year earlier after Eni SpA started up the Sankofa field in May, and as production rises at Tullow Plc’s second project in the country.