Ghana’s crude oil output tumbled to 18.42 million barrels in the first half of 2025, down sharply from 24.86 million barrels during the same period last year, according to the Public Interest and Accountability Committee’s latest semi-annual report.
The 25.9 percent production decline slashed petroleum receipts by 56 percent, dropping from US$840.77 million to just US$370.34 million. PIAC attributes the downturn to operational shutdowns, natural reservoir decline, scheduled maintenance activities, and weakening global oil prices across Ghana’s three producing offshore fields.
The Jubilee Field, Ghana’s flagship offshore development that started production in December 2010, remains the country’s largest producer but experienced the sharpest fall. Output dropped 32.8 percent from 16.41 million barrels to 11.02 million barrels, with average daily production declining from 90,755 barrels per day to 60,898 barrels per day.
A planned shutdown from March 26 to 31, followed by continued maintenance works from April 1 to 8, significantly constrained Jubilee operations during the period. After 14 years of production, the field shows signs of natural maturity as reservoir pressure declines.
The Tweneboa, Enyenra and Ntomme Field recorded the second steepest decline at 18.2 percent. Production fell from 3.45 million barrels to 2.98 million barrels, with daily output dropping from 19,059 to 16,462 barrels. TEN’s declining performance raises particular concerns about field viability given its substantially high production and development costs relative to output.
Despite receiving no revenue from TEN during the first half of 2025, Ghana National Petroleum Corporation spent US$2.45 million to meet equity financing obligations for the field. This situation required GNPC to draw on limited resources to cover costs in a field currently yielding no returns, raising questions about cash flow sustainability.
The Sankofa Gye Nyame Field saw the smallest decline among the three, with output falling 11.6 percent to 4.42 million barrels compared to 5.00 million barrels last year. Average daily production decreased from 27,600 to 24,463 barrels per day. PIAC linked the decline to intermittent operational disruptions and reservoir management challenges, though less severe than those affecting Jubilee and TEN.
In terms of production composition for the first half of 2025, Jubilee accounted for 60 percent of total output, Sankofa Gye Nyame contributed 24 percent, and TEN provided 16 percent. This represents a shift from 2024’s annual distribution when Jubilee dominated with 66 percent, Sankofa held 20 percent, and TEN contributed just 14 percent.
Gas production told a slightly more encouraging story. Ghana produced 130.4 million standard cubic feet of raw gas in the first half of 2025, with the predominantly gas focused Sankofa Gye Nyame field delivering 53 percent of output. Jubilee and TEN followed with their respective contributions to gas volumes.
The country exported 44.6 percent of its gas production, up marginally from 43.3 percent in the first half of 2024. Gas flaring decreased to 10.6 percent from 11.3 percent over the same period, showing modest improvement in gas utilization efficiency.
Petroleum revenue sources for the first half of 2025 break down as follows: Carried and Additional Participating Interest contributed US$178.48 million, representing 48 percent of total receipts. Corporate Income Taxes generated US$148.75 million, accounting for 40 percent. Royalties yielded US$40.15 million, about 10.8 percent of inflows. Interest on the Petroleum Holding Fund amounted to US$2.10 million, while surface rentals brought in just US$863,000, less than one percent.
Since oil production commenced in 2011, Ghana’s cumulative petroleum revenue has reached US$11.58 billion. The sector’s peak revenue year was 2022, when receipts hit US$1.4 billion. Ghana’s highest annual production figure was 71.44 million barrels in 2019, while the highest half year production reached 34.3 million barrels, also in 2019.
What troubles industry observers most is the sustained nature of the decline. Crude oil production has fallen for five consecutive years from that 2019 peak, suggesting structural problems rather than temporary operational setbacks. Previous PIAC reports consistently documented this downward trajectory even before the dramatic first half 2025 figures emerged.
The committee notes that no new Petroleum Agreement has been signed since 2018, describing this investment drought as a threat to long term output and government revenue. As of June 2025, Ghana maintained 13 active petroleum agreements, but only three fields are currently producing.
The Deepwater Tano/Cape Three Points block received approval for its Plan of Development, yet field work has not begun. Other contract areas remain at varying stages of exploration with no guarantee of commercial viability. Drilling activity slowed during the period under review, underscoring the sector’s loss of momentum.
Ghana has not made significant new oil discoveries recently, which is critical for sustaining long term production as existing fields mature and decline naturally. The country’s inability to sign new petroleum agreements since 2018 suggests potential investors view the regulatory environment as unattractive or unstable compared to competing jurisdictions in West Africa and beyond.
Recent developments offer glimmers of hope. Eni declared commerciality for the Eban Akoma offshore development in July 2025, while Tullow Oil and partners secured license extensions for the Jubilee and TEN fields, indicating continued investment interest despite production challenges.
However, converting exploration success and license extensions into sustained production increases requires substantial investment and effective field management. The lag between discoveries and commercial production means near term revenue improvements remain uncertain.
PIAC warned that continued declines in oil production could negatively affect petroleum revenue inflows and energy sector stability. The committee urged government and industry stakeholders to tackle operational inefficiencies, invest in reservoir maintenance, and attract new upstream investments to sustain production.
The committee further called for greater transparency in petroleum revenue management and enhanced oversight of state owned enterprises in the upstream sector to ensure maximum returns to the state. Strengthening field management, attracting fresh investment, and accelerating exploration of new blocks could help reverse production declines.
Unpaid surface rentals climbed to US$2.82 million by mid 2025, compared with just US$439,011 at the same time last year, despite repeated recovery efforts. PIAC called for tightened collaboration between Ghana Revenue Authority, the Petroleum Commission, Bank of Ghana, and Ministry of Energy to recover arrears and stabilize the industry.
The production and revenue figures come amid broader challenges for petroleum sector institutions. PIAC itself faces severe funding constraints after the Petroleum Revenue Management Amendment Act of 2025 removed the committee from direct petroleum revenue allocations, forcing it to compete for general budgetary resources from the Ministry of Finance.
Without urgent policy interventions and renewed investor confidence, Ghana risks seeing its petroleum sector become increasingly marginal to national revenues. The country needs strategic review of upstream operations, particularly fields like TEN struggling to maintain output while imposing high costs on the state.
Source: newsghana.com.gh
