Ghana’s crude oil production witnessed a decline of 6.78% in 2023, marking a continued downward trend over the past four years, as highlighted in the Public Interest Accountability Committee’s (PIAC) 2023 Annual Report on the Management and Use of Petroleum Revenue.
Production Figures
In 2023, Ghana produced 48,247,036.61 barrels of oil, a decrease from 51,756,481 barrels in 2022. This decline is part of a consistent pattern since the peak production year of 2019 when 71,439,585 barrels were produced. Subsequent years saw reductions to 66,926,806 barrels in 2020, 55,050,391 barrels in 2021, and 51,756,481 barrels in 2022, culminating in the 6.78% decrease observed in 2023.
Contributing Factors
The decline in production is attributed to several factors, including a lack of investment in discovering new fields and the natural ageing of existing fields. As fields mature, their output diminishes, necessitating proactive measures to sustain production levels.
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Field Contribution
Ghana’s crude oil production is sourced from three main fields: Jubilee, TEN, and Sankofa Gye-Nyame (SGN). In 2023, the Jubilee field accounted for 63% of total production with 30,444,217 barrels, while SGN and TEN fields contributed 23% and 14% respectively.
Gas Production
While crude oil production declined, gas production saw a slight increase in 2023. A total of 255,171.97 million standard cubic feet (MMSCF) of raw gas, including both Associated Gas (AG) and Non-Associated Gas (NAG), was produced, representing a 0.64% increase from 2022. The SGN field, known for its gas concentration, recorded the highest volume of combined AG and NAG production, followed by the Jubilee and TEN fields.
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Conclusion
With the decline in Ghana’s crude oil production, the importance of strategic investment in exploration and the development of new fields to sustain the country’s oil revenue can not go unnoticed. Efforts to enhance efficiency and optimize existing operations are crucial for reducing the impact of natural field ageing. As Ghana go through these challenges, a balanced approach that prioritizes both exploration and field management will be essential to ensure the long-term sustainability of its oil sector.