Ghana’s crude oil production has continued its downward trend for the fourth consecutive year, as detailed in the latest report from the Public Interest and Accountability Committee (PIAC).
In 2023, the West African nation extracted approximately 48,247,036.61 barrels of oil from its principal fields—Jubilee, Tweneboa Enyenra and Ntomme (TEN), and Sankofa Gye Nyame (SGN).
This figure represents a notable decrease from the 2022 production of 51,756,481.12 barrels, marking nearly a seven per cent decline year-over-year.
PIAC attributes the reduction in output to operational challenges across all three major oil fields. Emerita Prof. Elizabeth Ardayfio-Schandorf, Chairperson of PIAC, emphasized the significant impact of ageing infrastructure and insufficient investments in new exploration ventures.
This decline in production has had a direct impact on Ghana’s economy. The country’s petroleum revenues mirrored the decline in production, totalling 1,062,323,419.12 USD in 2023 compared to 1,428,760,076.93 USD in 2022. This reduction in revenue can be attributed to the decrease in crude oil production.
Meanwhile, gas production from these fields experienced a slight increase, reaching 255,171.97 million standard cubic feet (MMSCF) in 2023, up from 253,555.05 MMSCF in the previous year.
Since discovering commercially viable crude oil deposits in 2007, Ghana has accumulated a total revenue of approximately 9.85 billion USD.
This period has been crucial for Ghana’s energy sector amidst ongoing efforts to reverse production declines and stimulate investment in new oil reserves, offering a hopeful potential for growth in the future.
The situation underscores the broader challenges facing Ghana’s oil industry, prompting calls from PIAC for proactive measures by governmental and regulatory bodies.
The significance of these recommendations cannot be overstated, as they are crucial for bolstering production levels and sustaining revenues amid fluctuating global energy markets.
