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Crude oil production in Ghana declines by 6.3% – PIAC report

By PrimeNewsGhana
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Ghana’s crude oil production in 2020 fell by 6.3 per cent when compared to 2019 volumes, the 2020 Annual Management Report of the Public Interest and Accountability Committee (PIAC) has revealed.

According to the report, this is the first such decline in over three consecutive oil production increases.

Ghana’s total gas production, however, increased by 40 per cent, while the Sankofa Gye Nyame (SGN) field increased its output by 60 per cent being the highest volume in both Associated and Non-Associated Gas, the report noted.

The 2020 PIAC Annual Report encompasses a high range of issues associated with management and utilisation of petroleum revenues, including crude production, revenue accrued, revenue received, liftings, allocation and utilization of revenue by government and management set aside in the Ghana Petroleum Funds (Ghana Stabilisation Fund (GSF) and Ghana Heritage Fund (GHF).

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The report is a result of a continuous collaboration of PIAC and its stakeholders.  It also contains other issues and finding pertinent to the performance of various institutions.

The report said the COVID-19 pandemic contributed to a general revenue decline, following a fall in crude oil prices at the local and the international market.

The report said Surface Rental payments remained in arrears of U$2.1 million in 2020 an increase over the 2019 arrears of $1,566.463.12.  Nonpayment of income denies the PHF the necessary funds for development projects.

According to the report, the Petroleum Revenue Management Act (PRMA) could not present the 2020 – 2022 priority areas selected for Annual Budget Funding Amount (ABFA) disbursement to Parliament for approval.

The recommendation for the Annual Budget Funding Amount (ABFA) should not be used to serve the purpose of filling expenditure gaps when there is a revenue shortfall in the Budget.

PIAC, therefore, recommended that the Ghana Revenue Authority should initiate action to recover surface Rental Arrears.

It also called on the Ministry of Finance to ensure that Priority Arrears are approved by Parliament before implementation as required by Section 21 (5) of the PRMA.