Halt decline in crude oil production - PIAC to government

The Chairman of the Public Interest and Accountability Committee (PIAC), Prof. Kwame Adom-Frimpong, has called on the government to halt the decline in crude oil production.

He said oil production in the country had declined for three consecutive years, with the average decline being 10 per cent.

The chairman was speaking at the 2023 Bono Regional Public Forum in Sunyani on the management and use of petroleum revenue.

According to Prof. Adom-Frimpong, a volume of 71,439,585 barrels (bbls) that was produced in 2019, declined to 66,926,806 bbls in 2020, representing 6.32 per cent.

It further declined to 55,050,391 bbls in 2021, representing 17.75 per cent and 51,756,481 bbls in 2022, representing six per cent.

He, however, said that the total petroleum revenue in 2022 was the highest in a single year, amounting to $1.43 billion since the inception of petroleum production in the country. 

Currently, oil is produced from three fields in the country - Jubilee, Tweneboa, Enyenra, Ntomme (TEN) and Sankofa Gye Nyamme (SGN).

The forum, which was organised by PIAC, sensitised the people on how the government was managing petroleum revenue and also solicited their views on the way forward.

It was attended by traditional leaders, civil society organisations, the clergy, some security agencies, municipal and district chief executives and some assembly members.

The participants demanded answers on what had caused the continual decline in crude oil production, how the situation could be reversed, and the state of the Heritage Fund.

Others suggested a five per cent increase in the annual budget funding amount (ABFA), a portion of the petroleum revenue to assemblies to embark on more development projects.

Appeal

Prof. Adom-Frimpong further entreated the government to speed up sustainable development of its petroleum resources to reverse the decline in production.

He called for more investment in the refinery of oil and appealed for the early completion of ongoing projects in the crude oil industry.

According to him, the country's crude oil was witnessing a decline because of continual refining of oil at a particular destination without expansion, and, therefore, urged the government to speed up processes to reverse the trend.

Commitment

The Bono Regional Minister, Justina Owusu-Banahene, said the government was committed to the judicious use of petroleum revenue for the accelerated development of the country.

According to the minister, part of the revenue was being channelled into flagship programmes such as the Free Senior High School, provision of infrastructure and logistics in schools.

She, however, expressed the hope that more of the revenue would be channelled into the agric sector to drive economic activities in the region.

Writer’s email: biiya.ali@graphic.com.gh