Public Interest and Accountability Committee (PIAC), has disclosed the precipitous drop in Ghana’s upstream petroleum activity, revealing that crude oil production has declined from a peak of 71.4 million barrels to 37.3 million barrels in 2025.
This latest contraction marks the sixth consecutive year of dwindling output for the West African nation, which once reached a production zenith of 71.4 million barrels.
“In 2025, crude oil production declined for the sixth consecutive year, falling from a high of 71.4 million barrels to 37.3 million barrels. This represents a compounded annual average decline of 9%, which should be a concern for every Ghanaian.”
Richard Ellimah, Chairman of PIAC
The detailed findings, released in the PIAC 2025 Annual Report during a presentation, highlight a structural decay in the nation’s primary revenue-generating fields.
Since the peak in 2019, the industry has struggled to sustain its momentum, with the current 37.3-million-barrel figure representing a near 50% loss in volume over a six-year window. This trajectory suggests that without immediate intervention or a shift toward more sustainable energy investments, Ghana’s status as a significant African oil producer is at risk.
Investment Deficits and Underperforming Assets
The persistent downturn is largely attributed to a lack of fresh capital and the underperformance of key operational areas.
Mr. Ellimah pointed specifically to the Tweneboa-Enyenra-Ntomme (TEN) field as a primary source of concern, noting that its output has consistently failed to meet projected benchmarks.
He urged the government to “strengthen collaboration with the Petroleum Commission” to create a robust framework that could entice technical and financial partners back to the table.
According to the report, the stagnation is not merely a geological issue but a result of a “slowdown in fresh investment” as global players pivot toward renewable portfolios, leaving frontier markets like Ghana in a difficult lurch.
Fiscal Vulnerability and Revenue Shortfalls
The economic ripples of this production slump are becoming tidal waves in the national treasury.
Research indicates that total petroleum receipts crashed to approximately $769 million, a staggering 43% drop from the $1.35 billion recorded in 2024.
This revenue shortfall has forced critical cuts to the Annual Budget Funding Amount (ABFA), which finances essential infrastructure and social interventions.
Furthermore, the corporate income tax from the sector a major pillar of domestic revenue fell from over $500 million to just $346 million, reflecting the diminished profitability of aging fields like Jubilee and Sankofa-Gye Nyame.
A Crossroads for Ghana’s Energy Future
To “stabilise and increase production,” the Public Interest and Accountability Committee (PIAC) Chairman advised that the state must act swiftly to reverse the “downward trend” before the fiscal gap becomes unbridgeable.
While the immediate recommendation focuses on boosting investment in existing producing fields, the broader energy discourse in Ghana is increasingly looking toward the green transition as a long-term safeguard.
The current crisis underscores the danger of relying on “vanishing barrels” to fund national development.
If Ghana is to safeguard its long-term economic gains, it must balance the pursuit of additional oil investments with a transparent, accountable management system that prepares the economy for a post-petroleum era.
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