Ghana’s crude oil production has hit its lowest point in five years, sparking alarm over the sector’s sustainability and financial transparency. According to the Public Interest and Accountability Committee’s (PIAC) 2024 Annual Report, production fell to 48.25 million barrels—down from a peak of 71.44 million in 2019—marking a fifth consecutive year of decline.
The report notes a marginal year-on-year dip of 0.01% in 2024, translating to an average annual decline of 7.4% since 2019. This consistent downturn is raising red flags about the viability of Ghana’s upstream petroleum industry, especially given the nation’s heavy reliance on oil revenues for national development.
More troubling, however, are ongoing concerns about revenue management. PIAC revealed that proceeds from GNPC Explorco’s liftings—amounting to US$145.68 million in 2024—were not deposited into the Petroleum Holding Fund (PHF) as required by law. This adds to a cumulative US$488.79 million in petroleum revenues held outside the PHF by Explorco and JOHL since inception.
GNPC insists the funds from Explorco are exempt from PHF obligations, a claim PIAC continues to dispute. The oversight body is now calling for urgent legal clarity and strict adherence to existing laws to restore public trust in the sector.
The report also exposes continued lapses in surface rental payments, with international oil companies owing the government US$2.89 million in arrears as of December 2024. Alarmingly, about 60% of these unpaid fees are linked to companies whose petroleum agreements were revoked in 2021, casting doubt on enforcement efforts and the government’s ability to recover lost revenue.
PIAC’s findings have renewed calls for a comprehensive review of Ghana’s petroleum governance framework to safeguard future revenues and ensure transparency.
