In its latest annual report, the 2023 Public Interest and Accountability Committee (PIAC) has shed light on concerning trends in Ghana’s crude oil sector. The report outlined a troubling pattern: for the fourth consecutive year, crude oil production in the country has seen a decline.
From a peak of 71.44 million barrels in 2019, production dwindled to 48.25 million barrels in 2023, marking an average annual decrease of 9.2 percent.
Of particular concern was the revelation that proceeds from the Jubilee Oil Holdings Limited (JOHL) liftings, totaling US$70,456,718.93 in 2023, were not directed into the Petroleum Holding Fund (PHF) for the second consecutive year. This failure to channel revenues into the PHF has resulted in a cumulative unpaid sum of US$343,108,927.88 by JOHL to the fund by the end of 2023.
PIAC voiced its apprehension over this decline and emphasized the need for governmental and regulatory intervention to reverse the downward trajectory in existing oil fields and to foster investment in untapped reserves.
PIAC reiterated its stance that revenues from liftings conducted by JOHL and other subsidiaries of the Ghana National Petroleum Corporation (GNPC) are classified as petroleum revenues under pertinent legislation, including Section 6(e) of the Petroleum Revenue Management Act, 2011 (Act 815), and Section 2 of the Petroleum Revenue Management (Amendment), 2015 (Act 893). As such, PIAC stressed the imperative for these revenues to be promptly deposited into the Petroleum Holding Fund.