PIAC tells Ministry of Energy to increase investments in Ghana’s upstream petroleum industry

The 2024 annual report on petroleum revenue utilisation produced by the Public Interest and Accountability Committee (PIAC) has said that Ghana’s upstream petroleum industry looks to have hit a slump with the five-year declining trend of crude oil production as well as challenges with securing investments in the industry.

Nonetheless, the report said, with recent developments towards the operationalisation of the Onshore Petroleum Exploration and Production Policy, Ghana looks to take a pre-emptive approach to increasing activity in the industry and showing its attractiveness for investment.

This is a signal of commitment to attracting necessary capital for development, it stated.

Additionally, the report, which was released in Accra on Tuesday, April 29, added, the ongoing review of the Petroleum Revenue Management Act (PRMA) and Act 919 is crucial for ensuring streamlined regulatory frameworks that benefit the State as well as fostering a competitive landscape for exploration and production.

Collectively, these initiatives, if implemented, will reinforce the nation’s position in the global energy market and optimise Ghana’s petroleum resources for sustainable economic growth, it said.

PIAC, based on its analysis, has highlighted key findings and observations in the report that require attention.

PIAC, the body mandated to monitor the utilisation of petroleum revenue, recommended that Parliament should ensure that the Ministry of Energy and its allied agencies increase efforts to secure investments in Ghana’s upstream petroleum industry.

“The Committee reiterates its position that proceeds from liftings by GNPC Explorco constitute indirect participation of the State and therefore must be paid into the Petroleum Holding Fund. The Ghana Revenue Authority, the Petroleum Commission, the Bank of Ghana and the Ministry of Energy should collaborate to recover the Surface Rental arrears. Government should expedite action to expand its gas infrastructure capacity to take up more raw gas. Government should determine specific programmes for implementation over the course of Priority Areas before selection of the Priority Area.

“Parliament should ensure that the Ministry of Finance complies with Regulation 8 of L.I. 2381 in setting the cap on the GSF. PIAC reiterates its recommendation in its 2024 Semi-annual Report that the State conducts cost and technical audits on the TEN Field to establish the basis for cost escalation and technical challenges on the Field in recent years. Parliament must take steps to insulate GNPC and GNPC Explorco from loans and guarantees on behalf of Government, its agencies as well as national and local infrastructure projects.”

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