Crude oil production has been on the decline at an average of 10 per cent per annum for three consecutive years, the Public Interest and Accountability Committee (PIAC) has observed.
It explained that a volume of 71,439,585 barrels (bbls) was produced in 2019, but declined to 66,926,806 bbls in 2020, representing 6.32 percent.
PIAC noted that production declined to 55,050,391 bbls in 2021, representing 17.75 per cent and then to 51,756,481 bbls in 2022, showing a 5.98 per cent decrease.
The findings were highlighted in the 2022 Annual Report on the Management and Use of Petroleum Revenue, which PIAC launched on Thursday.
The report was in fulfilment of PIAC’s statutory obligation under the Petroleum Revenue Management Act, 2011 (Act 815), as amended by Act 893, to publish Semi-Annual and Annual Reports.
Speaking at the launch, the Chairperson of the committee, Professor Kwame Adom-Frimpong indicated that production from the three producing oil fields- Jubilee, Sankofa Gye-Nyame (SGN) and the Tweneboa-Enyenra-Ntomme (TEN)- were 87 per cent of the 2022 Benchmark crude oil output of 59.51 million bbls.
“The relatively lower production volume in 2022 was due to reduced production on the TEN and SGN field,” he said.
According to the report, Jubilee produced 30,523,813 bbls representing 59 per cent of total output with SGN producing 12,619,846.12 bbls, while TEN produced 8,612,822 bbls representing 24 per cent and 17 per cent, respectively.
It indicated that the Jubilee field increased production by 11.7 per cent from the 2021 output of 27,335,481 bbls to 30,523,813 bbls in 2022 due to the successful drilling and completion campaign of three wells.
The TEN Field’s production declined by 28 per cent from 11,978,064 bbls in 2021 to 8,612,822 bbls in 2022 due to technical challenges on the Enyenra reservoir.
The SGN Field recorded a reduced output of 19.8 per cent as it produced 12,619,846.12 bbls in 2022 compared to 15,736,846.10 bbls in 2021, due to planned shutdown activities and facility equipment upsets.
The report also indicated a 7.7 per cent decrease in gas production, where a total of 253,555.05 million Standard Cubic Feet (MMSCF) of raw gas including Associated Gas [AG] and Non-Associated Gas (NAG) was produced in 2022 from the three Fields.
These were lower compared to the 2021 volume of 256,262.04 MMSCF of raw gas produced.
“The SGN Field, relatively gas-concentrated, produced the highest volume of combined AG and NAG of 129,394.66 MMSCF while the Jubilee and TEN Fields produced 68,481.76 MMSCF and 55,678.63 MMSCF” the report stated.
Based on its findings, Prof Adom-Frimpong said PIAC has recommended the need to speed up the sustainable development of petroleum resources to attract new investors and reverse the decline in petroleum production.
Mr Kwame Jantuah, the Chief Executive Officer of the African Energy Consortium Limited said the country had missed the opportunity to increase production and maximise its revenue from the Oil sector, especially when the price of the commodity had gone up.
“For the last six years we haven’t done any new exploration and that doesn’t help” he said.