By Nadia Ntiamoah
Ghana’s crude oil production has declined for the fifth consecutive year, raising red flags about the long-term viability of the country’s upstream petroleum sector, according to the 2024 Annual Report of the Public Interest and Accountability Committee (PIAC), released on April 29, 2025.
Once hailed as one of Africa’s most promising oil producers following the 2010 commencement of production from the Jubilee Field, Ghana has since faced persistent operational and regulatory challenges.
The latest PIAC report shows that crude oil output in 2024 stood at 48.25 million barrels—down significantly from the 2019 peak of 71.44 million barrels.
This represents a 0.01% drop from 2023 and an average annual production decline of 7.4% over the past five years.
Jubilee Field Dominates Output Amid Shrinking Reserves.
The Jubilee Field continues to serve as the country’s primary oil-producing asset, contributing 66% of the total output in 2024.
This was followed by the Sankofa Gye Nyame (SGN) Field at 20% and the Tweneboa-Enyenra-Ntomme (TEN) Field with 14%.
However, the overall downward trend has raised serious concerns about field maturity and insufficient new investments in exploration and development.
Revenue Management Under Scrutiny
In addition to the declining output, the PIAC report sheds light on disturbing lapses in revenue management.
It revealed that a cumulative total of US$488.79 million earned by Ghana National Petroleum Corporation (GNPC) subsidiaries—Explorco and Jubilee Oil Holdings Limited (JOHL)—had not been transferred into the Petroleum Holding Fund (PHF) as required by the Petroleum Revenue Management Act (PRMA).
Specifically, in 2024 alone, US$145.68 million from Explorco’s liftings were retained outside the PHF.
Although GNPC maintains that these earnings are exempt from the PRMA due to the commercial nature of Explorco’s operations, PIAC has challenged this assertion.
The Committee insists that such revenues constitute indirect state participation and must be remitted to the PHF to ensure legal compliance and fiscal transparency.
Rising Earnings
Despite the structural weaknesses, Ghana’s petroleum earnings rose by 27.8% from US$1.06 billion in 2023 to US$1.36 billion in 2024—driven primarily by high global oil prices rather than increased production or efficiency.
This marks the second-highest revenue figure since commercial production began, but PIAC cautioned that the gains may be short-lived without deeper reforms.
PIAC also flagged the continued absence of budgetary allocations to industrialisation projects under the Annual Budget Funding Amount (ABFA)—a legally designated priority sector.
This persistent neglect, the Committee warned, undermines Ghana’s long-term development goals and squanders opportunities for value addition within the oil and gas value chain.
Uncollected Surface Rentals
Another troubling revelation in the report is that international oil companies operating in Ghana owe the state US$2.89 million in surface rental arrears.
Roughly 60% of this amount is owed by companies whose petroleum agreements were terminated in 2021. The failure to recover these funds points to institutional enforcement weaknesses and undermines confidence in regulatory oversight.
PIAC’s Call for Action
In response, PIAC is urging Parliament to tighten oversight and enforce stricter adherence to the PRMA.
The Committee also recommends improved inter-agency coordination between the Ghana Revenue Authority, Petroleum Commission, and Bank of Ghana to enhance revenue tracking and ensure better fiscal management.
With oil production declining and governance issues deepening, PIAC’s 2024 report serves as a stark warning: without urgent reforms in investment policy, legal compliance, and resource allocation, Ghana risks squandering its petroleum wealth and compromising its economic future.
