Ghana’s state oil company, the Ghana National Petroleum Corporation (GNPC), is facing one of its toughest financial years in recent memory, with both revenues and expenditures recording sharp declines in the first half of 2025.
According to data from the latest Public Interest and Accountability Committee (PIAC) report, GNPC’s total allocation from the country’s oil-producing fields dropped to US$65.26 million, representing a 42.9 percent fall compared to the same period in 2024. The corporation’s expenditure also fell by 62.4 percent to US$59.45 million, marking the lowest level of receipts and spending since 2017.
No Revenue from TEN Field
A key concern in the report is the complete absence of revenue from the TEN Field (Tweneboa, Enyenra, Ntomme), one of Ghana’s flagship oil fields. Despite receiving no funds from the field, GNPC still spent US$2.45 million to meet its equity financing obligations during the period.
This means GNPC had to rely on its limited resources to cover costs in a field that is currently not yielding returns. The situation raises questions about the field’s productivity and the long-term sustainability of GNPC’s cash flow.
The Bigger Picture
Analysts say the drop in GNPC’s income is not just a corporate issue but a broader economic one. As Ghana continues to rely heavily on oil revenues to support its budget, any reduction in upstream inflows could strain public finances.
Oil revenues feed into the Annual Budget Funding Amount (ABFA), which supports critical infrastructure projects and social programs. A drop in GNPC’s receipts therefore translates to less funding for development and lower reserves for future investments in the energy sector.
Energy experts suggest the decline could be linked to lower production levels, fluctuating global oil prices, and rising operational costs. Some also point to Ghana’s maturing oil fields, which are beginning to produce less than they did during their peak years.
Financial Strain and Policy Implications
The situation could force GNPC to tighten its spending further, potentially delaying exploration programs or partnerships aimed at boosting domestic production. With no new major discoveries coming onstream soon, the pressure is mounting on policymakers to review how the country manages its petroleum resources and diversifies its energy investments.
“This is a signal that Ghana’s oil sector is entering a more challenging phase,” said one industry analyst. “If production continues to dip and costs remain high, GNPC’s ability to meet its obligations and by extension, the government’s, could weaken.”
Looking Ahead
The PIAC report underscores the urgent need for a strategic review of Ghana’s upstream petroleum operations, particularly fields like TEN, which have struggled to maintain output. Strengthening field management, attracting fresh investment, and accelerating exploration of new blocks could help reverse the decline.
For now, the drop in GNPC’s revenue paints a sobering picture of the realities confronting Ghana’s oil economy, where falling production, rising costs, and lower global prices could erode the fiscal gains made since the country joined the ranks of oil producers in 2010.
