Ghana’s crude oil production has seen a continuous decline for the fifth consecutive year, dropping from a peak of 71.44 million barrels in 2019 to 48.25 million barrels in 2024, according to the 2024 Annual Report by the Public Interest and Accountability Committee (PIAC).
This represents a slight year-on-year decrease of 0.01% and an average annual decline of 7.4% over the five-year period.
The ongoing drop in oil output raises serious concerns about the future viability of Ghana’s upstream petroleum sector and the broader economic impacts, especially since oil revenues play a crucial role in financing key national programs.
The report also points to significant issues in the management of petroleum revenues. It highlights that US$145.68 million from the Ghana National Petroleum Corporation (GNPC) Explorco’s 2024 liftings was not paid into the Petroleum Holding Fund (PHF), in direct violation of legal requirements. This failure to comply brings the total unpaid revenues to US$488.79 million by the end of 2024, a figure that PIAC continues to challenge.
GNPC, however, argues that these funds are not required to be deposited into the PHF, a stance that PIAC disputes.
The oversight committee has called for greater legal clarity and adherence to regulations to ensure transparency and accountability in the management of petroleum revenues.
Additionally, the report highlights ongoing issues with surface rental payments, revealing that international oil companies (IOCs) owe the government US$2.89 million in unpaid fees as of December 2024.
Alarmingly, 60% of these arrears are attributed to three companies whose contracts were terminated in 2021, raising concerns about the effectiveness of revenue enforcement and recovery mechanisms.
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