Crude oil production experienced a significant decline for the fourth consecutive year in 2023, falling from a peak of 71.44 million barrels in 2019 to 48.25 million barrels in 2023.
This represents a decrease of approximately 23.19 million barrels over the period.
The production volume, which was 71.44 million barrels in 2019, dropped to 66.93 million barrels in 2020, marking a difference of 4.5 million barrels.
It further declined to 55.05 million barrels in 2021, a 17.75% decrease, and then to 51.76 million barrels in 2022, a reduction of 5.98%.
The average annual decline over the three-year period stood at 10%.
This decline is compounded by the fact that Ghana has not signed a new petroleum agreement in the past six years.
According to the 2023 annual report of the Public Interest and Accountability Committee (PIAC), the last petroleum agreement was signed in 2018.
The report also noted that there were no drilling activities in the TEN (Tweneboa, Enyenra, Ntomme), SGN (Sankofa Gye-Nyame), and Cape Three Points fields during this period.
The decline in the SGN field was primarily attributed to natural field decline after reaching peak production, while the rapid and unexpected decline in the TEN field was a major contributor to the overall drop in Ghana’s oil production.
PIAC recommended that the government and relevant regulatory bodies take steps to reverse the production decline in existing fields and ensure investment in untapped fields.
PIAC’s 2022 report emphasized the need for Ghana to expedite the sustainable development of its petroleum resources to reverse the declining production trend by attracting new investors and completing ongoing projects.
The Tweneboa, Enyenra, Ntomme (TEN) oil fields have faced significant production declines from 2020 to 2023 due to subsurface challenges.
However, there have been some positive developments in the Jubilee Field. In July 2023, two new wells, J61-P and J63-P, came online to boost overall field production.
Additionally, the J66-P well was brought online in September 2023, completing the Jubilee southeast project expansion and resulting in a peak production rate of 100,950.60 barrels per day.
In terms of investment climate in the upstream industry, several companies expressed interest in various opportunities in 2023. Notably, Planet One Oil and Gas Limited acquired stakes in the Deepwater Cape Three Points (DWCTP) Block in February 2024, partnering with GOIL Upstream Limited to fulfill the remaining obligations following the exit of ExxonMobil Exploration and Production Ghana (Deepwater) Limited.
These developments underscore the urgent need for strategic interventions to rejuvenate Ghana’s oil production capabilities and attract new investments to ensure the long-term sustainability of the sector.
