BusinessEnergy

PIAC calls for action to reverse oil production decline and attract investment

Ghana’s oil production has seen a concerning downward trend for the past four years, according to a report by the Public Interest and Accountability Committee (PIAC).

The report highlights a significant drop from a peak of 71.44 million barrels in 2019 to 48.25 million barrels in 2023, representing an annual average decline of 9.2%.

The PIAC urges the government and relevant regulatory bodies to take immediate steps to address this issue. Their recommendations include:

PIAC, in its report, said strategies are needed to improve efficiency and potentially revitalise existing fields.
According to PIAC, Ghana holds promising untapped potential, and attracting investment is crucial for exploration and development.

The report emphasises the importance of collaboration among all stakeholders involved in managing and utilizing Ghana’s petroleum revenue.

It working together is vital to create an attractive environment for investment in the country’s sedimentary basins.
Need to sign new agreements

Furthermore, the PIAC stresses the need for increased exploratory activities by International Oil Companies (IOCs).

Speaking at a media engagement in Koforidua in the Eastern Region last Saturday (25 May), the coordinator of PIAC, Isaac Dwamena said intensified exploration efforts can significantly increase the chances of discovering new oil fields, leading to a rise in both production and revenue.

The lack of new Petroleum Agreements since 2018 is another concerning aspect highlighted in the report.
Securing fresh agreements is essential for attracting investment and ensuring the long-term sustainability of Ghana’s oil production.

“So, if you can get only one company to invest in a well, what happens? If you can get only one company sinking one well, compared to getting five companies sinking five wells, you are more likely to rely on the five wells as likely to lead to a find than just one wellbeing sunk.”

“So, the more the petroleum agreements entered into, the more the work on the field, the more the work in the basin. And then the higher the probability of making a find.”

“If I am to go there, then I’m going there with superior technology or with something that will improve my data. And that is my chance of making a find. Otherwise, we operate in that area, I would rather work around the areas where data shows that it is likelier to make a find,” Dwamena said.

He added, “So that is why it is important to have as many petroleum agreements in operation than just a few petroleum agreements.”

PIAC said by taking these recommendations into account and fostering a collaborative approach, Ghana can address the decline in oil production and unlock the full potential of its petroleum resources.

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