By Franklin ASARE-DONKOH
The 2024 Annual Report of the Public Interest and Accountability Committee (PIAC) has raised concerns about the long-term sustainability of Ghana’s upstream petroleum sector.
According to the report, Ghana’s crude oil production declined for the 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.
The PIAC report, released on 29 April 2025, attributes the 2024 figure to a marginal year-on-year decline of 0.01 per cent, resulting in an average annual decrease of 7.4% over the past five years.
The Jubilee Field, the report revealed, remained the dominant contributor to national output, accounting for 66% of production, followed by SGN (20%) and TEN (14%).
In addition to falling production levels, the report highlights troubling issues with petroleum revenue management.
PIAC explained that a total of US$145.68 million earned from liftings by the Ghana National Petroleum Corporation’s (GNPC) commercial subsidiary, Explorco, was not paid into the Petroleum Holding Fund (PHF), a clear violation of the Petroleum Revenue Management Act (PRMA). This brings the cumulative untransferred revenue held by Explorco and Jubilee Oil Holdings Limited (JOHL) to US$488.79 million by the end of 2024.
Despite GNPC’s continued claim 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.
PIAC has therefore reiterated its call for Parliament to enforce strict compliance with the PRMA to uphold transparency and accountability in the sector. It also urged intensified oversight to attract upstream investment and protect national interests in the management of Ghana’s petroleum wealth.
The report also exposes persistent failures in revenue collection, revealing that international oil companies owe the state US$2.89 million in surface rental arrears. About 60% of this amount is owed by 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 start of oil production in the country, largely driven by higher global crude prices.
However, PIAC voiced concern over the continued lack of allocations to industrialisation in the use of the Annual Budget Funding Amount (ABFA), despite the sector being listed as a national priority.
The committee is calling for stronger institutional coordination and improved accountability among key state bodies, including the Ghana Revenue Authority, Petroleum Commission, and Bank of Ghana, to ensure efficient revenue collection and optimal use of the country’s petroleum resources.
