Ghana’s crude oil production has declined for the sixth consecutive year, raising fresh concerns about the sustainability of the country’s petroleum sector and its contribution to national revenue, the Public Interest and Accountability Committee (PIAC) has reported.
According to PIAC’s 2025 Annual Report, total crude oil output dropped sharply from 71.44 million barrels in 2019 to 37.3 million barrels in 2025, representing an average annual decline of about nine percent.
The report attributes the sustained downturn to a combination of maturing oil fields, natural reservoir depletion, technical challenges, and limited investment in upstream exploration and development.
PIAC also highlighted operational inefficiencies, particularly in gas management. It noted that gas reinjection levels remain high, especially in the TEN Field, where reinjection reached about 81 percent—an indication of constraints in gas utilisation and reduced field efficiency.
The continued decline in production has had a direct impact on petroleum revenues. In 2025, total petroleum receipts fell by 43.27 percent to $770.27 million, down from $1.36 billion recorded in 2024. Crude oil lifting revenues alone dropped by over 50 percent, while the absence of inflows from the TEN Field further weakened overall performance.
The report further pointed out that Ghana’s petroleum revenue base remains heavily concentrated in just two fields—Jubilee and Sankofa Gye Nyame (SGN)—leaving the sector vulnerable to shocks.
Beyond production and revenue concerns, PIAC raised serious governance and compliance issues in the management of petroleum funds. It revealed that $434.55 million allocated under the 2025 Annual Budget Funding Amount (ABFA) for infrastructure development remained unutilised in a suspense account during the period under review.
Additionally, only 0.43 percent of ABFA was transferred to the District Assemblies Common Fund (DACF), far below the statutory minimum of five percent, constituting a breach of legal requirements.
The report also flagged accountability concerns within the Ghana National Petroleum Corporation (GNPC), disclosing that $561.65 million in petroleum revenue held by its subsidiary, Explorco, remains unaccounted for.
In the gas sector, PIAC warned of mounting financial risks, noting that the Ghana National Gas Limited Company (GNGLC) continues to carry a high debt burden of $620.54 million, which could threaten stability across the energy value chain if not addressed.
To reverse the decline, PIAC called for urgent reforms to boost investment in existing oil fields and improve regulatory and fiscal conditions to attract new exploration.
