GHANA’s upstream petroleum sector is facing renewed investor scrutiny as declining production, revenue shortfalls and unresolved governance issues weigh on the industry’s outlook, the Public Interest and Accountability Committee (PIAC) has warned.
In its 2025 Annual Report released in Accra on April 8, PIAC highlighted structural weaknesses that could undermine the country’s ability to attract fresh capital at a time when new investment is critical to reversing a sustained production decline.
According to the report, petroleum receipts fell sharply to US$770 million in 2025, down from US$1.36 billion in 2024 and below the US$1.43 billion peak recorded in 2022, reflecting both lower output and softer pricing.
Crude production also declined to 37.3 million barrels, extending a multi-year downward trend from 48.24 million barrels in 2024 and 71.44 million barrels at peak in 2019.
It added that the average realised price of US$69.47 per barrel also undershot the government’s budget benchmark of US$74.70, tightening fiscal space and amplifying pressure on public finances.
A key risk flagged in the report was the failure of the Ghana National Petroleum Corporation (GNPC) subsidiary Explorco to account for US$561.65 million in petroleum revenues due to the state between 2022 and 2024.
It noted that the funds remained outstanding and had not been transferred into the Petroleum Holding Fund despite repeated calls, raising transparency and accountability concerns in the management of oil revenues.
The report further said financial constraints at GNPC had intensified, with total receipts falling 61.55 per cent to US$107.89 million in 2025, following a reduction in its participation share.
The corporation also recorded no inflows from the TEN field during the year, despite a crude lifting valued at US$60.79 million, with proceeds deferred to 2026 due to sanctions-related payment delays.
At the same time, GNPC did not meet US$30.75 million in cash call obligations, contributing to a build-up of liabilities within joint venture operations and limiting reinvestment capacity.
TEN field
According to the report, TEN Field, operated by Tullow Oil, continues to face declining output and constrained economics.
It said production fell to approximately 16,000 barrels per day in 2025, down from more than 40,000 barrels per day in 2017, with no new drilling activity recorded during the year.
In response to high operating costs, particularly the floating production vessel lease, partners had agreed to acquire the FPSO for US$205 million to improve cost efficiency and extend field life.
PIAC, however, has recommended an independent technical and financial assessment of the transaction.
Government arrears to Tullow, estimated at about US$50 million in TEN-related obligations, add further strain to the asset’s financial profile.
Gas sector liabilities
The report also flags a US$620.54 million receivable owed by the Ghana National Gas Company (GNGC) to GNPC as a significant risk to the broader energy value chain.
PIAC warns that persistent indebtedness within the gas-to-power segment could undermine supply stability and weaken the financial sustainability of the sector.
Despite the headwinds, Ghana recorded US$3.5 billion in investment commitments in 2025, alongside progress on new exploration agreements and field developments.
The Ghana Heritage Fund grew to US$1.38 billion, signalling continued accumulation of long-term petroleum savings.
Outlook
PIAC emphasised that while underlying resource potential and investor interest remained intact, restoring fiscal discipline, strengthening revenue governance and resolving sector debts will be critical to sustaining investment flows.
With petroleum receipts projected at US$985.5 million in 2026, the report underscored the need for policy and institutional reforms to rebuild credibility and stabilise the sector’s medium-term outlook.
Source:
www.graphic.com.gh