The Public Interest and Accountability Committee have disclosed in their annual report that majority of oil companies in Ghana are indebted to government to the tune of $721,000.

Licensed upstream companies paid $465,920 in 2015 compared to about $907,501 in 2014, representing 49% drop, according to the Ghana Revenue Authority and Bank of Ghana 2016 report.

READ MORE: Massive Layoffs Oil companies sack 300 Ghanaians, more to follow

The Public Interest and Accountability Committee was established by an act of parliament to serve as a supervisory body for revenues generated in the oil and gas exploration sector.

Meanwhile, the Africa Centre for Energy Policy has predicted an increase in government debts, as government would look to borrowing as a way to plug the revenue generation gap.

According to the Head of Policy at the Africa Centre for Energy Policy, Dr. Ishmael Ackah,  oil companies who have acquired licenses for operations but are not engaging in any meaningful commercial exploration activities must be checked, as they are causing financial loss to the state.

“This is a very bad thing and I think it will affect government revenue”, says the Head of Policy at ACEP, “Some are now going to raise funds to look for the oil meanwhile we have given them provisional licences”, Dr. Ackah laments.