Ghana’s upstream petroleum industry declining – PIAC

Ghana’s upstream petroleum industry has hit its lowest trend in crude oil production in the last five years, the Public Interest and Accountability Commitee (PIAC) has disclosed.

The industry is also facing challenges with securing investments.

Mr. Richard Ellimah, Chairman of the Technical Sub Committe of the PIAC, addressing the media in Tamale, said recent developments in the operations of the onshore petroleum exploration and production indicate that Ghana must take a pre-emptive approach to increase activity in the industry and to attract investment.

This would signal commitment to attracting necessary capital for development.

The media engagement, held in Tamale, and organised by the PIAC, was on the management and use of petroleum revenues in the country.

It was to equip the media with the necessary knowledge to help them understand, analyse, and shape the reportage on petroleum revenue management and use in Ghana.

He said the ongoing review of the Petroleum Revenue Management Act (PRMA) and Act 919 are crucial for ensuring streamlined regulatory frameworks that benefit the state as well as fostering a competitive landscape for exploration on the global energy market and to optimise Ghana’s petroleum resources for sustainable economic growth.

Mr. Ellimah stated that PIAC has made recommendations to parliament for it to ensure that the Ministry of Energy and its allied agencies increased efforts at securing investments for Ghana’s upstream petroleum industry.

He said the committee insists that proceeds from lifting by the Ghana National Petroleum Corporation (GNPC) constitute indirect participation of the state and therefore must be paid into the Petroleum Holding Fund.

Mr. Ellimah stated that 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 areas,” he stated.

Mr. Ellimah said: “Parliament should ensure that the Ministry of Finance complies with regulation eight of the L.I.2381 in setting the cap on the Ghana Stabilisation Fund (GSF).

He added that, “Government should pay more attention to GNPC’s rising expenditure on the ten-field vis a vis its revenue from the Field.”

Source: GNA

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