Ghana’s Crude Oil Production Continues Decline, Gas Production Sees Marginal Increase

Ghana’s crude oil production has experienced a notable decline, as outlined in the Public Interest Accountability Committee’s (PIAC) 2023 Annual Report on the Management and Use of Petroleum Revenue. The report reveals a 6.78% decrease in crude oil production in 2023 compared to the previous year, marking a continuation of the downward trend observed over the past four years.

In 2023, Ghana produced 48,247,036.61 barrels of oil, down from 51,756,481 barrels in 2022. This decline follows a pattern from the peak production year of 2019, where 71,439,585 barrels were produced. Subsequently, production fell to 66,926,806 barrels in 2020 (a 6.32% decline), 55,050,391 barrels in 2021 (a 17.75% decline), and 51,756,481 barrels in 2022 (a 5.98% decline).

The report highlights that this reduction represents the fourth consecutive year of declining annual production volumes since 2010. Ghana’s crude oil is sourced from three main fields: Jubilee, TEN, and Sankofa Gye-Nyame (SGN). The Jubilee Field, operational since December 2010, remains a significant contributor, accounting for 63% of total crude oil production in 2023 with 30,444,217 barrels.

The Chairperson of PIAC, Emerita Professor Ardayfio-Schandorf, attributes the production decline to both a lack of investment in discovering new fields and the natural ageing of existing fields, leading to diminished output. Despite the downturn in crude oil production, gas production experienced a slight increase.

A total of 255,171.97 million standard cubic feet (MMSCF) of raw gas, comprising both Associated Gas (AG) and Non-Associated Gas (NAG), was produced in 2023, representing a 0.64% rise from 253,555.05 MMSCF in 2022. The SGN field, known for its gas concentration, recorded the highest volume of combined AG and NAG production with 127,203.02 MMSCF, while the Jubilee and TEN fields produced 77,900.05 MMSCF and 50,068.90 MMSCF, respectively.

The contrasting trends in crude oil and gas production underscore the complexities and challenges faced by Ghana’s petroleum sector, emphasizing the need for strategic investments and exploration efforts to sustain production levels and maximize resource utilization in the coming years.