Ghana’s Crude oil production has declined for the fourth consecutive year in 2023, dropping from a high of 71.44 million barrels in 2019 to 48.25 million barrels in 2023, according to figures in the 2023 Annual Public Interest and Accountability Committee (PIAC) report.

The production decline since 2019 transalates into an annual average decline of 9.2%

Petroleum revenue for 2023 also recorded a 25.65% decline from the $1.65bn accrued in 2022 to a lower accrument of $1.06bn.

The report also highlights the failure of authorities, for the 2nd consecutive, to pay into the Petroluem Holding Fund (PHF) total proceeds from JOHL liftings received in 2023, amounting to US$70,456,718.93.

PIAC also observed as worrying the continuous rise in GNGLC’s indebtedness to GNPC despite the use of the Cash Waterfall Mechanism to address the legacy debt, warning, “the trend, if not mitigated, could impair the operational viability of GNGLC”.

Below are the key findings of the report:

• 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 total proceeds from JOHL liftings received in 2023, amounting to US$70,456,718.93, were not paid into the 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.

An ABFA amount of US$108,750,000 was disbursed to the GIIF-SPV Viability Fund for the Accra-Tema Motorway Extensions Project in 2023, instead of GIIF. The Committee finds the transfer of funds to be contrary to Section 21(4)(b) of the PRMA.

• An amount of US$24,298,598.18 (GH¢270,907,662.28), representing 5 percent of the 2023 ABFA, was disbursed to the DACF in compliance with the decision of the Supreme Court of Ghana in the case of Kpodo and Another vrs Attorney General in 2019, to transfer at least 5 percent of the ABFA to the Fund.

• The Annual Budget Funding Amount disbursed to support the Government’s Agenda 111 project was GH¢758,975,487.29 in 2023. The ABFA component (GH¢1,708,287,215.59) of the total expenditure (GH¢2,618,287,215.59) on the Project since its inception is 65.24 percent.

• Surface Rental owed by IOCs remain high at US$2,738,365.29 as at the end of 2023.

• Allocation and disbursements of annual ABFA to the Industrialisation Priority Area has reduced from 1.15% in 2020 to 0.11% in 2023, thereby undermining the essence of prioritisation.

The Public Interest and Accountability Committee (PIAC) 2023 Annual Report on the management and use of petroleum revenues is in fulfilment of Section 56 of the Petroleum Revenue Management Act (PRMA), 2011 (Act 815). The Committee, with an oversight of the management and use of the country’s petroleum revenues, prepares and publishes Statutory Reports every six months to inform Ghanaians and other stakeholders about the management and utilisation of the country’s petroleum revenues. Since its establishment, the Committee has published a total of 25 Reports – 12 Semi-Annual and 13 Annual. The 2023 Annual Report covers the period January to December 2023 and includes a broad range of issues relating to petroleum revenue management such as information on production, liftings, total revenues accruing and allocation by Government, ABFA utilisation, and the management of the funds set aside in the Ghana Petroleum Funds (Ghana Stabilisation Fund and the Ghana Heritage Fund). The Report also examines other issues pertinent to the performance of various institutions charged with responsibilities in the PRMA, including PIAC.

A copy of the full report can be obtained on www.piacghana.org