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

Ghana's crude oil production has declined for five straight years. 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 potential long-term economic issues. The country relies heavily on oil revenues for key national programs.

The report raises serious concerns about petroleum revenue management. It states that total proceeds from GNPC Explorco’s liftings in 2024 were US$145.68 million. These funds were not paid into the Petroleum Holding Fund (PHF), as required by law.

This omission brings unpaid revenues held by JOHL and GNPC Explorco to US$488.79 million by the end of 2024. GNPC argues that these revenues are not required to go into the PHF, a claim PIAC disputes.

PIAC has called for clarity and legal adherence in managing these revenues. They emphasize the need for transparency and accountability in the sector.

Additionally, the report notes persistent surface rental arrears. International oil companies (IOCs) owe the government US$2.89 million in unpaid fees as of December 2024.

About 60 percent of these arrears come from three companies whose agreements were terminated in 2021. This situation raises questions about enforcement and revenue recovery mechanisms.