In this article, we report the absolute production cross-section of 6.13, 6.92 and 7.12 MeV γ-rays from the 16O(p,p ′γ )16O reaction for incident proton energy range of 8-16 MeV. Angular distributions of the three γ-rays have been measured for seven angles at 9 MeV proton energy. A detailed phenomenological optical model potential (OMP) was set up to analyse the cross-section data. The OMP parameters were optimised using elastic, polarization and total reaction data available in the literature for protons and neutrons. Low-lying states of 16O were coupled, the optical potential was deformed using deformation parameters, and several resonances were included in the calculations to account for the nuclear structure effects. The potentials so generated have been used to calculate the differential and total cross sections for both 16O(p,p ′ )16O and 16O(p,p ′γ )16O reactions. Our calculated cross-sections are in fairly good agreement with our measured data for 6.13, 6.92 and 7.12 MeV γ-rays. However, there still exist discrepancies in reproduction of the finer details of the cross sections. The comparisons of the calculations with the data bring forth the rather complex roles of channel couplings, resonances in the p+16O system and target deformation in the variation of the cross sections with projectile energy. The increased contribution of nuclear structure effects in light mass nuclei, leads to an apparent loss of predictive power of the theoretical calculation, as we approach the low-energy region of less than 10 MeV projectile energy.