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PIAC calls for increase in Ghana’s oil production

Oil and Gas PIAC calls for increase in Ghana’s oil production
MON, 03 JUN 2024 LISTEN

The Public Interest and Accountability Committee (PIAC) has expressed worry about the decline in oil production by Ghana and has called on the government and other relevant regulatory bodies to take steps to reverse the production decline on existing oil fields and ensure investments in unexpected fields.

Crude oil production declined for the fourth consecutive year in 2023. Production dropped from a high of 71.44 million barrels in 2019 to 48.25 million barrels in 2023 representing an annual average decline of 9.2%.

Media engagement
Mr. Edward Afriyie, a Member of PIAC, said these at a media engagement session in Sunyani yesterday the 2023 PIAC annual report. Media personnel from Bono East, Bono and Ahafo regions participated in the engagement session.

The engagement sought to equip participants with the necessary knowledge to help understand, analyze, and shape the reportage on petroleum revenue management and use in Ghana.

Giving highlights of the 2023 PIAC Annual Report, Mr Afriyie said parliament should take into consideration Regulation 8 of L.I 2381 with regards to the cap on the GSF in approving Appropriation.

“While it is commendable that the Ministry of Finance disbursed five percent of the Annual Budget Funding Amount (ABFA) to the District Assemblies Common Fund (DACF), the Committee urges the Ministry to ensure that subsequent disbursements to the DACF meet the minimum requirements of five percent of the ABFA”, Mr Afriyie added.

He also said PIAC was worried that the allocation and disbursements of annual ABFA toward industrialization has reduced from 1.15% in 2020 to 0.11 in 2023, thereby undermining the essence of prioritization.

He further complained that about 54% of the ABFA disbursed to the DACF was used for recurrent expenditure such as goods and services, contrary to Section 21(4)(a) of the Petroleum Revenue Management Act, as amended, which provides that not more than 30% of ABFA shall be used for goods or services.

Accountability
Mr. Ransford Tetteh, a Member of PIAC, who presided over the session, reminded the media of their constitutional mandate under Article 162(5), which enjoins them to hold government accountable to Ghanaians.

“You are key stakeholders of PIAC…and you must ensure that you keep power to account. Sometimes, it seems to me that, we as the media fraternity are not holding government enough to account…”, he added.

Mr. Tetteh, a former News Editor of the Daily Graphic and currently the GJA’s representative on PIAC, said the media should be interested in finding out how the country’s oil revenues are being used over time.

According to him, Ghana has received about ten billion dollars from her oil revenue since 2010 but very little can be shown for it and charged the media to inquire about how this money has been used and keep the public updated on their enquiries.

The Acting Regional Chairperson of the Ghana Journalists Association for Bono, Bono East and Ahafo, Mrs. Regina Benneh Siaw, moderated a session on how best the media can collaborate with PIAC to disseminate credible information about its activities and to hold duty-bearers to account for the use of the country’s oil revenues.

Richard Kofi Boahen
Richard Kofi Boahen

Bono, Bono East and Ahafo CorrespondentPage: RichardBoahen

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