Underinvestment in exploration & production causing drop in Ghana’s crude oil production – PIAC

The Public Interest and Accountability Committee (PIAC) has said in a report that underinvestment in exploration and production is among the leading causes of the drop in crude oil production in Ghana.

PIUAC says that Ghana has not made significant new oil discoveries in recent years, which is key for sustaining long-term production.

Some production facilities have experienced technical challenges, particularly with equipment malfunctions and maintenance delays, it said.

PIAC notes in a report that the lack of adequate infrastructure for oil and gas processing, transport, and storage has also limited production capacity.

” The global energy transition, with increasing emphasis on renewable energy, has created uncertainty in the future of crude oil demand. This has influenced oil companies’ willingness to invest heavily in long-term oil exploration and production projects in regions like Ghana,” it said.

Regarding the operation of the Jubilee Field, PIAC said that Ghana’s flagship oil field is experiencing natural production declines as it matures.

“Production peaked early on and has since been on a downward trend,” it said.

Regarding the Tweneboa Enyenra Ntomme (TEN) and Sankofa Fields, PIAC said that they are beginning to follow a natural decline curve unless further investments are made to enhance production.

 

 

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