Ghana’s oil production falls for fifth consecutive year – PIAC Report

Ghana's crude oil production has declined for five years in a row. It fell from 71.44 million barrels in 2019 to 48.25 million barrels in 2024. This information comes from the 2024 Annual Report by the Public Interest and Accountability Committee (PIAC).

The report shows a slight year-on-year decline of 0.01 percent. Over five years, there has been an average annual drop of 7.4 percent. This ongoing decline raises concerns about Ghana’s upstream petroleum sector.

It also highlights the economic implications of relying on oil revenues for national programs. The report points out serious issues with petroleum revenue management. In 2024, total proceeds from GNPC Explorco’s liftings were US$145.68 million.

These funds were not paid into the Petroleum Holding Fund (PHF), as required by law. This brings unpaid revenues held by JOHL and GNPC Explorco to US$488.79 million by the end of 2024.

GNPC argues that these revenues do not need to go into the PHF, which PIAC disputes. The oversight committee calls for clarity and legal compliance in revenue management to ensure transparency.

Additionally, the report notes persistent surface rental arrears owed by international oil companies (IOCs). As of December 2024, IOCs owe the government US$2.89 million in unpaid fees. About 60 percent of these arrears are from three companies whose agreements were terminated in 2021.

This situation raises questions about enforcement and revenue recovery mechanisms in Ghana's oil sector.