PIAC raises alarm over falling oil production, unutilised petroleum funds

 

By Kofi Ahovi

The Public Interest and Accountability Committee (PIAC) has raised concerns over Ghana’s declining crude oil production and the underutilisation of petroleum revenues, warning that the country risks further setbacks without urgent reforms and new investments in the sector.

In its 2025 Annual Report, PIAC disclosed that Ghana’s crude oil production declined for the sixth consecutive year, falling from 71.44 million barrels in 2019 to 37.3 million barrels in 2025, representing an average annual decline of about nine percent.

According to the report, the downward trend is being driven by natural depletion of mature oil fields, technical challenges and limited upstream investment.

The report confirms a sustained decline in Ghana’s crude oil production, which has now fallen for the sixth consecutive year,” PIAC stated, noting that the situation reflects “a combination of maturing fields, natural reservoir depletion, technical challenges, and limited upstream investment,” noted Samuel Bekoe  Executive Director of the Center for Extractives Development in Africa during a training workshop with members of the Institute of financial and Economic Journalists (IFEJ) and the Parliamentary Press Corps.

The committee further highlighted operational inefficiencies in the Tweneboa-Enyenra-Ntomme Field (TEN) Field, where gas reinjection reportedly reached 81 percent, pointing to constraints in gas utilisation and field efficiency.

To reverse the decline, PIAC recommended that government develop a framework to boost investment in existing oil fields, particularly the TEN Field, while improving fiscal and regulatory conditions to attract exploration in new basins. It also called for a medium-term plan to improve reservoir interconnectivity in the TEN Field and extend its productive life.

The report also revealed a sharp drop in petroleum revenues. Total petroleum receipts declined by 43.27 percent, from US$1.36 billion in 2024 to US$770.27 million in 2025, while crude oil lifting revenues fell by more than 50 percent.

PIAC said the Jubilee Oil Field accounted for 66.87 percent of lifting receipts, with the Sankofa-Gye Nyame Field contributing 33.13 percent.

Corporate Income Tax remained the highest source of petroleum revenue at US$346.85 million, followed by Carried and Participating Interest (CAPI) at US$339.27 million and royalties at US$77.61 million.

The committee also expressed concern about the management and utilisation of petroleum revenues under the Annual Budget Funding Amount (ABFA).

According to the report, US$434.55 million earmarked for infrastructure development under the government’s “Big Push” agenda remains unutilised in a suspense account.

PIAC further criticised the allocation of only 0.43 percent of ABFA to the District Assemblies Common Fund (DACF), instead of the constitutionally required minimum of five percent.

This raises constitutional and compliance concerns,” Bekoe noted.

On petroleum savings, PIAC reported that total reserves in Ghana’s petroleum funds increased by 6.59 percent to US$1.55 billion. The Ghana Heritage Fund grew by 9.36 percent, while the Ghana Stabilization Fund declined by 11.14 percent due to withdrawals and what the committee described as improper capping.

The report also pointed to financial pressures within the energy sector, revealing that receipts by the Ghana National Petroleum Corporation (GNPC) declined by 61.55 percent due to policy changes.

Additionally, PIAC warned that the debt exposure of the Ghana National Gas Company Limited (GNGLC) remains high at US$620.54 million, posing what it described as a systemic risk to Ghana’s energy value chain.

The PIAC was established under Section 51 of the Petroleum Revenue Management Act (PRMA), 2011 (Act 815), as a citizen-led statutory body to provide additional oversight over Ghana’s petroleum revenues. PIAC was created to support Parliament in monitoring how petroleum revenues are collected, allocated, managed, and utilised by government and relevant institutions.

The Committee’s core mandate includes monitoring and evaluating compliance with the PRMA, creating a platform for public debate on whether petroleum revenue spending aligns with national development priorities, and providing independent assessments on the management and use of petroleum revenues. Through these functions, PIAC supports both Parliament and the Executive in strengthening transparency, accountability, and oversight in Ghana’s petroleum sector.