File picture A maze of crude oil pipes and valves is pictured throughout a tour by the Division of Power on the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. REUTERS/Richard Carson
Ghana’s crude oil manufacturing has declined for the fifth consecutive 12 months, dropping to 48.25 million barrels in 2024 from a peak of 71.44 million barrels in 2019, in response to the most recent annual report by the Public Curiosity and Accountability Committee (PIAC).
The report exhibits a mean annual decline of seven.4% over the 5 years.
Past declining manufacturing, PIAC’s 2024 report highlights main points with petroleum income administration.
It revealed that GNPC Explorco did not pay US$145.68 million in oil lifting proceeds into the Petroleum Holding Fund (PHF) in 2024. This brings the whole unpaid revenues by JOHL and GNPC Explorco to US$488.79 million by the top of the 12 months.
Regardless of GNPC’s insistence that these proceeds don’t qualify as PHF funds, PIAC maintains they symbolize oblique State participation and should be paid into the fund.
One other key concern is the US$2.89 million in floor rental arrears owed by Worldwide Oil Corporations (IOCs), most of that are tied to firms whose petroleum agreements have been terminated in 2021.
Key Suggestions
In response to the findings, PIAC has made a number of suggestions to strengthen governance, accountability, and funding within the petroleum sector:
1. Parliament ought to make sure that the Ministry of Power and its allied businesses enhance efforts to safe investments in Ghana’s upstream petroleum business.
2. The Committee reiterated its place that proceeds from liftings by GNPC Explorco represent oblique participation of the State and due to this fact should be paid into the Petroleum Holding Fund.
3. The Ghana Income Authority, the Petroleum Fee, the Financial institution of Ghana and the Ministry of Power ought to collaborate to recuperate the Floor Rental arrears.
4. Authorities ought to expedite motion to increase its gasoline infrastructure capability to take up extra uncooked gasoline.
5. Authorities ought to decide particular programmes for implementation over the course of the Precedence Areas earlier than number of the Precedence Space.
6. Parliament ought to make sure that the Ministry of Finance complies with Regulation 8 of L.I. 2381 in setting the cap on the GSF.
7. PIAC reiterates its advice in its 2024 Semi-annual Report that the State conducts value and technical audits on the TEN Subject to ascertain the premise for value escalation and technical challenges on the Subject in recent times.
8. Parliament should take steps to insulate GNPC and GNPC Explorco from loans and ensures on behalf of Authorities, its businesses in addition to nationwide and native infrastructure tasks.
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