10
Ghana’s petroleum revenue experienced a remarkable rise in 2024, reaching US$1.36 billion, representing a 27.8 percent increase from US$1.06 billion in 2023, according to the latest Annual Report by the Public Interest and Accountability Committee (PIAC). This significant growth, despite a continuous drop in crude oil production, reflects the resilience of the country’s petroleum sector, even amidst global oil challenges. The report was presented by Mr. Samuel Bekoe, a member of PIAC representing Think Tanks, during an Eastern Zonal Media Engagement held in Koforidua.
The petroleum revenue increase in 2024, although impressive, still falls short of the record high achieved in 2022, which stood at US$1.42 billion. Notably, the country earned its second-highest revenue since the onset of oil production in 2010, driven largely by favorable global oil prices despite a slight decline in crude oil output. In total, Ghana’s petroleum production decreased to 48.24 million barrels in 2024, continuing a steady decline from a peak of 71.44 million barrels in 2019.
While Ghana’s oil production figures have been shrinking for the past five years, the significant rise in revenue underscores the country’s ability to adapt to global market shifts. Mr. Bekoe pointed out that the performance of the petroleum sector reflects resilience, as the country’s revenue continues to grow even as production dwindles.
In addition to crude oil, gas production also saw notable figures in 2024, with raw gas production reaching 280,511.03 MMSCF. The SGN field played a central role, contributing nearly half of the total gas output. The gas utilization data showed that 41.3 percent was exported, 44.3 percent was injected into the system, 4.2 percent was used as fuel, and 10.2 percent was flared.
Cumulatively, Ghana has produced over 1.77 trillion MMSCF of commercial raw gas since 2014. Revenue from petroleum activities is generated through various sources, including Carried and Participating Interest (CAPI), which contributed US$603.5 million; Corporate Income Tax (CIT), which brought in US$502.87 million; Royalties amounting to US$239.98 million; and other income streams like surface rentals and PHF interest.
For 2024, the Petroleum Holding Fund (PHF) allocated revenues to several bodies: the Ghana National Petroleum Corporation (GNPC) received US$280.6 million; the Annual Budget Funding Amount (ABFA) was granted US$493.3 million; the Ghana Stabilisation Fund (GSF) was allocated US$409 million; and the Ghana Heritage Fund (GHF) received US$175.3 million.
Since the start of oil production in Ghana, the cumulative total of petroleum receipts has reached US$11.21 billion, with the same amount being distributed through the PHF. In terms of spending, the ABFA allocated funds to four priority areas approved by Parliament for 2023–2025: agriculture and fisheries, education and health infrastructure, roads, rail, and other critical infrastructure, and industrialization.
However, there were no funds allocated to industrialization in 2024, raising concerns about Ghana’s commitment to this priority area, as outlined under the Petroleum Revenue Management Act (PRMA). The report also highlighted some ABFA-funded projects in the Eastern Region, such as a GHC7 million road construction project in Atekyem, Koforidua, and a GHC2.6 million CHPS compound in Asuogyaman. Additionally, GHC1 million was spent on bitumen surfacing of feeder roads, and GHC600,000 was used to fund rural market and borehole projects in Upper Manya Krobo.
Despite these positive developments, the report revealed several concerns. For instance, no new petroleum agreements were signed in 2024, continuing a trend that has lasted for the past five years. Furthermore, the GNPC Explorco failed to remit US$145.7 million from its liftings into the PHF, resulting in nearly US$489 million in cumulative unpaid revenues. Additionally, international oil companies owed Ghana US$2.89 million in surface rental arrears, with 60 percent of this amount owed by companies whose agreements were terminated in 2021. Moreover, the country forfeited 1,186.81 MMSCF of Make-Up Gas (MUG) from the SGN field.
The TEN field, although it recorded the lowest output, incurred the highest development costs, with state contributions rising by over 400 percent. PIAC recommended that Parliament enforce compliance with the PRMA, particularly regarding the GSF cap, which was retained at US$100 million instead of the required US$517.43 million. The committee also emphasized the need to insulate GNPC and GNPC Explorco from loan obligations unrelated to their core mandates. Moreover, the Ministry of Energy was urged to intensify efforts to attract upstream investments, while the Ghana Revenue Authority, Petroleum Commission, and Bank of Ghana were called upon to recover outstanding surface rental payments.
