- PIAC has released its 2023 report
- PIAC identified high development and production costs
- JOHL failed to pay its total proceeds of $70,456.93
The Public Interest and Accountability Committee (PIAC) has released its 2023 report on the management and use of Ghana’s petroleum revenue, raising concerns about high development costs and declining production.
Key Findings:
High Development Costs and Low Production: PIAC identified high development and production costs in the Tweneboa Enyenra Ntomme (TEN) oil field, despite a significant drop in oil production for the fourth consecutive year. Production fell from 71.44 million barrels in 2019 to 48.25 million barrels in 2023.
Unpaid Funds and Outstanding Debts: The report revealed that Jubilee Oil Holdings Limited (JOHL) failed to pay its total proceeds of $70,456.93 into the Heritage Fund for the second year in a row. Additionally, Surface Rentals owed by International Oil Companies remained high at $2.7 million at the end of 2023.
Allocation Concerns: PIAC noted that since 2011, the Annual Budget Funding has been based on a medium-term plan instead of a long-term national development plan. They also found discrepancies in the capping of the Ghana Stabilization Fund, suggesting a misapplication of the formula.
Limited Enforcement Power:
The report launch included a discussion on PIAC’s limited power to enforce its recommendations. Despite making 62 recommendations since its inception, only 37 have been implemented. Participants called for a stronger collaboration between PIAC and investigative bodies to ensure proper investigation and action on their recommendations.
