The 2023 Public Interest and Accountability Committee (PIAC) Annual Report has revealed a concerning decline in Ghana’s crude oil production for the fourth consecutive year. According to the report, crude oil production has dropped from a high of 71.44 million barrels in 2019 to 48.25 million barrels in 2023, representing an annual average decline of 9.2 percent.
The report also revealed that the total proceeds from the Jubilee Oil Holdings Limited (JOHL) liftings received in 2023, amounting to US$70,456,718.93, were not paid into the Petroleum Holding Fund (PHF) for the second consecutive year. This brings the cumulative proceeds of unpaid revenue into the PHF by JOHL to US$343,108,927.88 as of the end of 2023.
PIAC expressed concern over the decline and urged the government and relevant regulatory bodies to take the appropriate steps to reverse the production decline in existing fields and ensure investments in unexploited fields. PIAC further reiterated its position that proceeds from liftings of JOHL and other subsidiaries of GNPC constitute petroleum revenues within the meaning of Section 6(e) of the Petroleum Revenue Management Act, 2011 (Act 815) and Section 2 of the Petroleum Revenue Management (Amendment), 2015 (Act 893) and therefore must be paid into the Petroleum Holding Fund.
The decline in Ghana’s crude oil production for the fourth consecutive year raises concerns about the country’s petroleum industry. The report’s findings and recommendations highlight the need for urgent action to address the decline and ensure investments in unexploited fields.
