Advertisement
Advertisement
Ghana News

PIAC recommends speeding up sustainable development of petroleum resources in Ghana

Advertisement

Ghana must act quickly to develop its petroleum resources sustainably to combat the decline in production, says the 2022 annual report of the Public Interest and Accountability Committee (PIAC), which monitors petroleum funds utilization.

The report revealed that crude oil production had been declining for three consecutive years, with production dropping from 71,439,585 barrels in 2019 to 66,926,806 barrels in 2020, representing 6.32%. Production continued to decrease to 55,050,391 barrels in 2021, representing a 17.75% drop and then further decreased to 51,756,481 barrels in 2022, representing a 5.98% decrease. The report highlighted that the average decline over the three-year period is 10%.

Advertisement

The PIAC report recommends that Ghana needs to speed up the sustainable development of its petroleum resources to reverse the decline in production, encouraging the attraction of new investors, and the early completion of ongoing projects.

Surface rental arrears also continued to increase, with the arrears rising from US$2.58 million in 2021 to US$2.77 million in 2022. 65% (US$1.80 million) of the increase was owed by four contractors whose Petroleum Agreements were terminated in 2021. The report notes that efforts made by the Ghana Revenue Authority (GRA) to retrieve the arrears were yet to yield the desired results.

The PIAC report recommends that the GRA intensifies its efforts in the collection of surface rental arrears, particularly the amount owed by the four contractors whose Petroleum Agreements were terminated in 2021.

In a nutshell, the PIAC report calls on the Ghanaian government to take the necessary steps to reverse the decline in petroleum production by attracting new investors and speeding up the sustainable development of its petroleum resources. Furthermore, it recommends that the GRA intensifies its efforts in the collection of surface rental arrears to ensure revenue collection.

Advertisement
Advertisement

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement
Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker!