Ghana’s Oil Output Falls For The Fifth Straight Year

Ghana’s crude oil production has continued its downward trend for a fifth consecutive year, with total output for 2024 dropping to 48.25 million barrels, down from a peak of 71.44 million barrels in 2019.

This development, revealed in the 2024 Annual Report of the Public Interest and Accountability Committee (PIAC), highlights concerns over the long-term viability of the country’s upstream petroleum sector.

The report, released on 29 April 2025, attributes the 2024 figure to a marginal year-on-year decline of 0.01 per cent, translating to an average annual decrease of 7.4 per cent over the past five years. The Jubilee Field remained the dominant contributor to national output, accounting for 66 per cent of production, followed by SGN (20 per cent) and TEN (14 per cent).

Beyond falling production levels, the report also highlights troubling issues with petroleum revenue management. PIAC found that a total of US$145.68 million earned from liftings by GNPC’s commercial subsidiary, Explorco, was not paid into the Petroleum Holding Fund (PHF), in contravention of the Petroleum Revenue Management Act. This brings the cumulative untransferred revenue held by Explorco and the Jubilee Oil Holdings Limited (JOHL) to US$488.79 million by the end of 2024.

Despite GNPC’s continued assertion that Explorco’s liftings are exempt from PHF payments, PIAC maintains that such proceeds constitute indirect state participation and must be accounted for under the law. The committee has reiterated its call for Parliament to ensure strict compliance with the PRMA to safeguard transparency and accountability in the sector.

The report further exposes persistent revenue collection failures, with international oil companies owing the state US$2.89 million in surface rental arrears. About 60% of these outstanding payments are linked to three companies whose petroleum agreements were terminated in 2021, raising questions about enforcement and the state’s ability to recover lost funds.

In terms of earnings, the report shows that Ghana’s total petroleum receipts rose by 27.8% from US$1.06 billion in 2023 to US$1.36 billion in 2024. This marks the second-highest revenue figure since the inception of oil production in the country, driven mainly by higher global crude prices.

However, PIAC cautioned that Ghana failed to sign any new petroleum agreements in 2024—the fifth consecutive year without a new deal—despite efforts by the Energy Ministry to attract investment. The report also expressed concern over the absence of allocations to industrialisation in the use of the Annual Budget Funding Amount (ABFA), despite the sector being listed as a priority area.

The committee’s findings suggest a need for stronger institutional coordination and accountability across state agencies, including the Ghana Revenue Authority, Petroleum Commission, and Bank of Ghana, to ensure efficient revenue collection and optimal use of petroleum resources.

PIAC concluded by urging Parliament and relevant stakeholders to intensify oversight, attract upstream investment, and uphold statutory requirements that safeguard national interest in the management of Ghana’s petroleum wealth.

Source: Graphiconline