There is a new concern over Ghana’s oil production that requires urgent attention. Ghana has become heavily dependent on oil revenue since it became an oil-producing country.
Since production began years ago, the promise of oil wealth felt like a new hope and discovery that could change the fortunes of the country’s socio-economic fortunes. Petroleum revenues have become one of Ghana’s cash cows that fund its annual budgets and finance critical infrastructure projects.
Oil production has also become a critical source of employment, both direct and indirect jobs. For a resource with such a huge potential, it would be expected that production will be sustained to keep the revenues flowing.
Is the Cow Growing Lean?
Yet the latest data from the 2025 PIAC Annual Report tells a sobering story of a dream that is literally losing pressure.
In an interesting turn of events, Ghana’s crude oil production has hit a steep downward slope, marking its sixth consecutive year of decline.
The latest data cited by The High Street Journal indicates that from a record-breaking peak of 71.44 million barrels in 2019, the output has withered away, closing 2025 at just 37.3 million barrels.
This isn’t just a minor dip; it is a compounded annual average decline of 9% that has left petroleum revenues reeling, falling by over 43% in just the last year.
Why is the Tap Closing?
What is causing this slump? According to the report, the answer isn’t a single leak but a combination of several factors:
Maturing Fields
Like an old well, Ghana’s primary fields, Jubilee, TEN, and Sankofa, are experiencing natural reservoir depletion. This is an indication that the “easy oil” has been taken, and the fields are simply aging.
The Investment Drought
PIAC notes that there has been a worrying lack of significant new discoveries. Sadly, for five consecutive years, no new Petroleum Agreements were signed, meaning there are no “new engines” ready to replace the old ones.
Technical Gremlins
PIAC further attributes the situation to operational challenges that have plagued production, including planned maintenance shutdowns and complex geological issues.
For instance, in the TEN Field, a staggering 81% of gas had to be reinjected into the ground just to keep the oil flowing, signaling massive efficiency constraints.
Drilling Slump
Moreover, activity in the TEN field has dropped so sharply that production rates fell from 40,000 barrels per day in 2017 to approximately 16,000 barrels per day in 2025 due to a lack of sustained drilling.
What Does This Mean for the Average Ghanaian?
The major and main consequence when oil production drops is that the national purse shrinks. This shortfall directly impacts current initiatives, such as the “Big Push”, the government’s ambitious infrastructure agenda.
Even the District Assemblies Common Fund (DACF), which supports local development across the country, received only 0.43% of its expected funding, far below the required 5% minimum.
For the market woman in Madina asking how oil can support agriculture or the student hoping for a scholarship from the GNPC Foundation, these numbers are a wake-up call.
The Bottomline
PIAC is now calling for urgent reforms, more investment in existing fields, a holistic review of the laws, and a renewed focus on finding new basins before the existing ones truly run dry.
The story of Ghana’s oil isn’t over, but it has reached a critical chapter where transparency and new investment are the only ways to turn the tide.
