The Public Interest and Accountability Committee (PIAC), tasked with ensuring the transparency and accountability of Ghana’s petroleum revenue management, is considering court action to resolve a $488 million dispute with the Ghana National Petroleum Corporation (GNPC) over oil revenues not remitted to the Petroleum Holding Fund (PHF).
The amount includes $145 million in proceeds from 2024 liftings by GNPC’s subsidiary, GNPC Explorco. According to PIAC’s 2024 Annual Report, total outstanding petroleum revenues, also involving Jubilee Oil Holdings Limited (JOHL), stood at $488 million as of December 31, 2024.
“The Committee reiterates its position that proceeds from liftings by GNPC Explorco constitute indirect participation of the State and therefore must be paid into the Petroleum Holding Fund,” said PIAC Chair, Constantine Kudzedzi Esq. at the report launch.
Legal Showdown Looms Over PRMA Interpretation
GNPC, however, disputes PIAC’s reading of the Petroleum Revenue Management Act (PRMA), arguing that Explorco’s proceeds fall outside the remit of the PHF. PIAC disagrees, insisting the funds qualify as petroleum revenue under the law.
“We have done all the analysis and stick to our position that GNPC Explorco’s proceeds should be paid into the PHF,” Kudzedzi said. “However, GNPC holds a different opinion. So, we may have to seek an interpretation from the courts on what constitutes petroleum revenue under the PRMA Act, and this will be our last resort.”
The PRMA was enacted to provide a framework for the upstream petroleum sector on the collection, distribution, and management of all revenue associated with the sale or other commercial activities of oil and gas resources produced in Ghana for the benefit of Ghanaians.
Rising Debt Concerns at Explorco
PIAC’s report also highlights a new financial risk: the transfer of sovereign loan obligations from GNPC to Explorco. These include liabilities linked to government-backed guarantees involving Karpowership and Litasco.
“There is a worrying development where some loan obligations, initially borne by GNPC on behalf of the State… are being offloaded to GNPC Explorco,” the report stated. “This will potentially saddle Explorco with debt and defeat its purpose as a solely commercial wing of GNPC capable of sustaining the Corporation when it no longer benefits from disbursements from the PHF.”
As GNPC prepares for eventual weaning from the PHF, PIAC warns that loading debt onto its commercial arm could weaken its financial autonomy and expose it to solvency risks.
PIAC Calls for Parliamentary Action
To mitigate future exposure, PIAC is urging Parliament to pass legislation barring GNPC and Explorco from assuming government-related liabilities, including guarantees for infrastructure and energy deals.
