The Public Interest and Accountability Committee (PIAC) has called on Parliament to support the Ministry of Energy and its allied agencies in securing greater investment for Ghana’s upstream petroleum sector. This recommendation forms part of PIAC’s 2024 Annual Report on the management and utilisation of petroleum revenues, published in fulfillment of Section 56 of the Petroleum Revenue Management Act (PRMA), 2011 (Act 815), as amended.
Despite ongoing efforts by the Ministry of Energy, the report noted that 2024 marked the fifth consecutive year without the signing of a new Petroleum Agreement. This trend reflects growing concerns over investor hesitancy and declining exploration activity within Ghana’s oil and gas sector.
Crude oil production continues to fall, dropping from a high of 71.44 million barrels in 2019 to 48.25 million barrels in 2024, a year-on-year decline of 0.01% and an average annual decline of 7.4% over five years.
While total petroleum revenues increased by 27.8% to over $1.35 billion in 2024, largely due to favorable pricing, PIAC warns that this windfall masks deeper structural concerns, especially the stagnation in upstream growth. The report also flagged critical issues such as the failure of GNPC Explorco to pay US$145.7 million from crude liftings into the Petroleum Holding Fund, bringing total unpaid revenue to nearly US$489 million.
In light of these developments, PIAC urged Parliament to intensify oversight and policy support to reverse the declining production trend and help Ghana remain competitive in attracting exploration capital. It also reiterated that revenues from GNPC Explorco’s operations should be considered state resources and paid into the Petroleum Holding Fund as required by law.
Additionally, the Committee recommended improved inter-agency collaboration between the Ghana Revenue Authority, Petroleum Commission, Bank of Ghana, and Ministry of Energy to recover nearly US$2.9 million in surface rental arrears, much of it owed by companies whose contracts were terminated in 2021.
