The 2024 Annual Report recently published by the Public Interest and Accountability Committee (PIAC) reveals a trend. Ghana’s crude oil production has decreased for the fifth year in a row. It has gone down from its highest point of 71.44 million barrels in 2019 to 48.25 million barrels in 2024.
The report showcases a slight decrease of 0.01 percent compared to the previous year and an average yearly drop of 7.4 percent during the five years.
The decrease in production is ongoing. This causes worry about the future viability of Ghana’s upstream petroleum industry. It also raises concerns about its potential effects on the economy. This is especially concerning since the country heavily depends on oil profits to support critical national initiatives.
In addition, the report raises significant issues surrounding petroleum revenue management. It discloses that in 2024, GNPC Explorco did not deposit US$145.68 million — the full amount from their liftings — into the Petroleum Holding Fund (PHF), as mandated by law. This exclusion brings the total unpaid revenue held by JOHL and GNPC Explorco to US$488.79 million by the end of 2024.
According to GNPC, the funding from Explorco liftings should not automatically go towards the PHF fund, which has been a concern for PIAC. In response, the oversight committee has consistently requested clear guidelines and proper adherence to laws in managing these funds to promote transparency and accountability within the industry.
Moreover, the report draws attention to ongoing surface rental delinquencies. According to the report, the IOCs had an outstanding balance of US$2.89 million in rental fees owed to the government as of December 2024. Three companies account for approximately 60 percent of these arrears, and their petroleum agreements were revoked in 2021. This raises concerns about the effectiveness of enforcement and revenue retrieval measures.
