COPEC flags mammoth loses in upstream sector

“We cannot produce 100,000 barrels of oil and only report 60,000. The missing 40,000 barrels raise questions. We lack mechanisms to verify production and export entries. The state is losing significant revenue without transparency,” he explained.

He urged government officials to prioritize upstream resource governance. This should be done like the monitoring systems benefiting downstream operations recently.

Mr. Amoah highlighted SML’s success in helping the GRA recover GH¢20 billion in revenues over four years. He argued that proper monitoring of the upstream segment could generate “two to three times more” revenue for the state.

“If we celebrate downstream gains, we must remember that upstream holds real volume,” he said. “We are losing too much because producers report what they choose.”

Mr. Amoah acknowledged being a harsh critic of SML initially due to misinformation about its contracts. However, after reviewing their operations and systems, he changed his view.

“I was not charitable towards SML at first,” he said. “But once I saw their technology and data, it became clear that SML is a technical solution to a longstanding problem.”

His remarks come amid growing scrutiny over managing the nation’s extractive resources. The country relies heavily on oil and mineral revenues for economic stability and public spending.

In response to these concerns, SML unveiled new real-time monitoring systems for upstream oil and solid minerals sectors. The company has built a reputation in downstream petroleum through digital tracking technologies.

SML announced its upstream system is now deployed across Ghana’s three Floating Production Storage and Offloading (FPSO) vessels.

“Our systems provide real-time data from production to storage to offtake,” said Hamdan Abubakar, Head of Engineering at SML. “Every litre is accounted for when a vessel arrives.”

The technology integrates flow meters, tank-level sensors, and offtake meters for comprehensive audits. It supports production forecasting, budgeting, and reconciliation.

According to SML, this system allows agencies like the GRA and Ministry of Finance to validate volumes in real time—eliminating long-standing data blind spots.

SML also introduced a Solid Mineral Monitoring System focused on gold initially. This platform uses AI tools to analyze weight, purity, and composition of gold bars.

Authorities can calculate royalties and trace commodities from mine site to refinery using this system's data co-managed by GRA and Minerals Commission.

Dr. Yaa Serwaa Sarpong from SML emphasized improving transparency with this system while removing manual bottlenecks that allow under-declaration.

“It’s about innovation giving the state control over its resources,” she stated.

The upstream and solid mineral systems are expected fully operational by Q3 2025 after integrating with industry stakeholders.

“These tools enable decision-making based on facts rather than estimates,” Dr. Sarpong added.

COPEC’s Duncan Amoah stressed that since technology exists to protect national interests, policymakers must ensure these systems function without interference.

“Otherwise, we will remain a nation that extracts but cannot account,” he warned.