The Public Interest and Accountability Committee (PIAC) has highlighted underinvestment in exploration and production as a major contributor to the decline in crude oil production in Ghana.
In its latest report, PIAC points out that Ghana has not seen significant new oil discoveries in recent years, a critical factor in maintaining long-term production levels. The report also notes technical challenges at production facilities, including equipment malfunctions and maintenance delays, which have hampered output.
Additionally, PIAC notes that the lack of adequate infrastructure for oil and gas processing, transportation, and storage has further constrained production capacity. This infrastructural gap has limited Ghana’s ability to fully capitalize on its oil resources.
The report also identifies the global shift towards renewable energy as a contributing factor. The growing emphasis on renewable energy has created uncertainty about the future demand for crude oil, which has influenced oil companies’ willingness to invest heavily in long-term exploration and production projects in countries like Ghana.
PIAC also provided an update on Ghana’s flagship oil field, the Jubilee Field, which has experienced a natural decline in production as it matures. The field, which saw its peak production early on, has been on a downward trajectory.
Similarly, the report notes that the Tweneboa Enyenra Ntomme (TEN) and Sankofa Fields are following a natural decline curve unless additional investments are made to enhance production. Without further capital injection, these fields may face similar production challenges as the Jubilee Field.
