While Ghana’s oil production faces a steady decline, there is also a high-stakes financial tug-of-war behind the scenes between the Public Interest and Accountability Committee (PIAC) and the national oil company, Ghana National Petroleum Corporation (GNPC).
At the center of this disagreement is a staggering US$561.65 million. a sum that the PIAC says belongs in the national purse.
However, GNPC believes otherwise and has kept the funds outside the country’s Petroleum Holding Fund (PHF), as required by the Petroleum Revenue Management Act (PRMA).
The Heart of the Dispute: What is “Explorco”?
The controversy revolves around Explorco, which is a subsidiary of GNPC designed to act as its commercial wing.
According to PIAC’s report, for the past years, Explorco has been lifting crude oil from Ghana’s offshore fields, but the proceeds from these sales have not been deposited into the central account from which oil money is distributed for national development.
By the end of 2024, PIAC says the unpaid revenues stood at US$488.79 million.
Fast forward to the latest 2025 PIAC Annual Report, and that figure has swelled to US561.65 million, marking a growing hole in the state’s official accounts.
The Two Sides: A Clash of Interpretations
The GNPC argument is based on commercial autonomy. Its argument is built on the legal separation of its subsidiary. According to the national oil company, proceeds from Explorco’s liftings do not constitute “petroleum revenue” as defined by the Petroleum Revenue Management Act (PRMA).
It maintains that because Explorco is a commercial entity, its earnings should stay within the company to fund operations and investments, rather than being treated as state taxes or royalties that must go to the PHF.
However, PIAC has taken the opposite position. PIAC, the statutory watchdog, isn’t buying the argument of GNPC. The Committee insists that Explorco’s activities represent the “indirect participation of the State” in the oil sector.
It says Explorco is 100% owned by the people of Ghana through GNPC. Therefore, any oil it lifts belongs to the Republic, and the law (PRMA) is clear that all petroleum receipts must pass through the PHF to ensure transparency and proper allocation.
Why It Matters to You
This isn’t just a technical disagreement between GNPC and PIAC. Should PIAC be right in its position, every dollar that stays with Explorco is a dollar that doesn’t reach the Annual Budget Funding Amount (ABFA) to build roads, the Ghana Heritage Fund for future generations, or the District Assemblies Common Fund for local community projects.
In a year where total petroleum receipts dropped by over 43 percent, the “missing” $561 million represents a massive missed opportunity for a nation struggling with a shrinking national purse.
A Looming Legal Showdown
It appears the standoff phase is gradually reaching a breaking point. PIAC has made numerous calls for these revenues to be accounted for, yet GNPC has stood its ground.
With the deadlock showing no signs of easing, PIAC is now considering seeking a Supreme Court interpretation of the PRMA.
The goal of such a move would be to provide a final, binding answer: Can a state-owned subsidiary bypass the nation’s petroleum laws?
As Ghana navigates a period of declining production, the resolution of this $562 million dispute will be a litmus test for the country’s commitment to transparency.
Will the “commercial wing” of the GNPC remain a law unto itself, or will the Supreme Court bring Explorco back into the light of national accountability? The answer could shape the future of Ghana’s oil legacy for decades to come.
