Ghana National Petroleum Corporation recorded its lowest revenues and expenditures since 2017 during the first half of 2025, as the state oil company grapples with declining production and reduced petroleum receipts.
GNPC’s total allocation from oil producing fields dropped to US$65.26 million in the first six months of 2025, representing a 42.9% decline compared to the same period in 2024, according to the Public Interest and Accountability Committee’s latest semi-annual report. The corporation’s expenditure fell 62.4% to US$59.45 million during the period.
The sharp decline coincides with broader challenges facing Ghana’s petroleum sector. Total petroleum receipts dropped 56% from US$840.7 million in the first half of 2024 to US$370.3 million in the corresponding period of 2025, primarily attributed to lower production and reduced crude oil prices.
A significant concern highlighted in the PIAC report involves the TEN Field, which comprises the Tweneboa, Enyenra and Ntomme offshore oil fields. Despite receiving no revenue from TEN during the period, GNPC 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 field productivity and cash flow sustainability.
The TEN Field contributed 14% of Ghana’s total oil production in 2024, with the Jubilee Field accounting for 66% and Sankofa Gye Nyame contributing 20%, according to previous PIAC reports. The absence of TEN revenues in early 2025 represents a notable shift in the field’s contribution pattern.
Ghana’s crude oil production has declined for five consecutive years, dropping from a peak of 71.44 million barrels in 2019 to 48.25 million barrels in 2024. This sustained production decline directly impacts GNPC’s revenues and the broader petroleum sector’s contribution to national finances.
Average achieved prices for crude oil sold on behalf of the Ghana Group fell approximately 13%, from US$86.12 per barrel in the first half of 2024 to US$74.93 per barrel in the same period of 2025. The combination of lower production and reduced prices compounds revenue challenges.
Under the Petroleum Revenue Management Act, GNPC receives up to 55% of net Carried and Participating Interest from petroleum revenues, in addition to equity financing costs. The corporation’s reduced allocation reflects both declining overall revenues and policy decisions about revenue distribution.
Government indebtedness to GNPC reached US$1.25 billion as of December 2024, adding financial pressure on the state corporation. This debt accumulation limits GNPC’s operational flexibility and investment capacity.
Reduced GNPC revenues have broader economic implications beyond the corporation itself. Oil revenues feed into the Annual Budget Funding Amount, which supports infrastructure projects and social programs. Declining petroleum receipts translate to reduced funding for development initiatives and lower reserves for future energy sector investments.
Energy analysts attribute the decline to multiple factors including lower production levels, fluctuating global oil prices, rising operational costs, and maturing oil fields producing less than during peak years. Ghana’s three main producing fields have operated for over a decade, with natural production decline expected in mature fields.
The situation may force GNPC to tighten spending further, potentially delaying exploration programs or partnerships aimed at boosting domestic production. Without new major discoveries coming onstream soon, pressure mounts on policymakers to review petroleum resource management and diversify energy investments.
Recent developments offer some optimism. 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 has emphasized the urgent need for strategic review of Ghana’s upstream petroleum operations, particularly fields like TEN struggling to maintain output. Strengthening field management, attracting fresh investment and accelerating exploration of new blocks could help reverse production declines.
The corporation’s financial strain illustrates broader challenges confronting Ghana’s oil economy, where falling production, rising costs and lower global prices threaten to erode fiscal gains made since the country began oil production in 2010.
Whether GNPC can reverse this downward trajectory depends on multiple factors including successful field optimization, new discoveries reaching production, sustained investment in existing assets, and favorable global oil price movements. The next several years will prove critical for determining the long term viability and contribution of Ghana’s petroleum sector.
