PIAC RECOMMENDS URGENT STEPS TO STEM DECLINE IN CRUDE OIL PRODUCTION LEVELS

The Public Interest and Accountability Committee (PIAC) says it has observed with concern, a decline in crude oil production for four years running.

According to the Committee, this is a worrying trend that must be curbed.

“Crude oil production declined for the fourth consecutive year in 2023. Production dropped from a high of 71.44 million barrels in 2019 to 48.25 million barrels in 2023 representing an annual average decline of 9.2 percent,” the Committee noted in its 2023 Annual Report launched on May 21 in Accra.

The Committee therefore recommended urgent steps to forestall a recurrence.

“Government and the relevant regulatory bodies should take the appropriate steps to reverse production decline on existing oil fields and ensure investments in unexploited fields,” the report said.

PIAC also found that “The total proceeds from Jubilee Oil Holdings Limited (JOHL) liftings received in 2023, amounting to US$70,456,718.93, were not paid into the Petroleum Holding Fund (PHF) for the second consecutive year. This brings the cumulative proceeds of unpaid revenue into the PHF by JOHL to US$343,108,927.88 as at end of 2023.”

In this regard, the Committee reiterated its position that “proceeds from liftings of JOHL and other subsidiaries of GNPC constitute petroleum revenues within the meaning of Section 6(e) of the Petroleum Revenue Management Act, 2011 (Act 815) and Section 2 of the Petroleum Revenue Management (Amendment), 2015 (Act 893), and therefore must be paid into the PHF.”

SOURCE: 3NEWS.COM

Previous PIAC REPORT: GHANA’S CRUDE OIL PRODUCTION DECLINES FOR FOURTH CONSECUTIVE YEAR

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