Ghanaian owned companies secured nearly half of all oil and gas service contracts in the second quarter of 2025, marking a significant shift in local participation within the petroleum sector, according to the Public Interest and Accountability Committee.
Indigenous Ghanaian firms earned approximately US$147 million of the US$296 million total value of services provided in the petroleum sector by end of Q2 2025, PIAC reported. Joint venture companies combining Ghanaian and foreign partners earned US$141 million, while purely foreign companies received only US$8 million.
The figures represent a dramatic change from 2024, when joint ventures dominated the market with US$547 million in service contracts compared to US$198 million for local firms and US$88 million for foreign companies.
However, the gains for indigenous companies come amid a sharp overall contraction in sector activity. Total service contract values dropped from US$833 million in 2024 to US$296 million in the first half of 2025, a decline of approximately 64%.
The reduction reflects broader challenges facing Ghana’s petroleum sector. Ghana’s crude oil production has declined for the fifth consecutive year, dropping from a peak of 71.44 million barrels in 2019 to 48.25 million barrels in 2024, according to PIAC’s 2024 Annual Report.
Additionally, petroleum receipts for the first half of 2025 fell by 56% compared to the same period in 2024, indicating reduced revenue generation across the sector.
Despite these headwinds, indigenous companies increased their market share substantially. Their growing participation means more petroleum sector revenue stays within Ghana, supporting local workers, suppliers and businesses while building domestic technical capacity.
To qualify as indigenous under Ghana’s local content regulations, companies must have at least 51% Ghanaian equity ownership, 80% of executive and senior management positions held by Ghanaians, and 100% of non management positions occupied by Ghanaians.
The Petroleum Commission enforces these local content and local participation regulations, which aim to maximize the use of Ghanaian expertise, goods, services and financing in petroleum operations.
PIAC has consistently advocated for greater opportunities for indigenous companies throughout the oil and gas value chain. The latest data suggests these policies are achieving their intended impact, though questions remain about sustainability given the sector’s production decline.
Lower production levels, reduced exploration activity and global price uncertainty likely contributed to the sharp drop in total contract values. Analysts note that while Ghanaian companies gained market share, the overall pie has shrunk considerably.
The shift toward indigenous participation addresses longstanding concerns that foreign companies captured most benefits from Ghana’s petroleum resources. Local content policies seek to ensure natural resource wealth translates into broader economic development through job creation, technology transfer and enterprise development.
Joint ventures, which bring together Ghanaian and foreign partners, continue playing a major role with nearly half of all contracts. These partnerships can provide capital, technology and expertise while involving Ghanaian stakeholders and building local capacity.
The near disappearance of purely foreign companies from the contract landscape, dropping from US$88 million in 2024 to just US$8 million in H1 2025, represents perhaps the most striking change. This reflects both local content policy enforcement and possibly reduced activity by international service companies.
Whether indigenous companies can maintain their enhanced position if sector activity rebounds remains to be seen. Capacity constraints, financing limitations and technical expertise gaps could challenge local firms in handling larger, more complex projects.
The decline in overall petroleum activity poses fiscal challenges for Ghana. Oil revenues contribute to government budgets and fund development priorities through the Annual Budget Funding Amount allocated from petroleum receipts.
PIAC previously proposed measures to address declining crude oil production, including economic diversification, sustainable exploitation of existing fields, and strategies to attract new investment in exploration and development.
If current trends continue with indigenous companies maintaining strong participation even as activity levels recover, Ghana could see most petroleum sector work handled by its own citizens and companies, from logistics and engineering to maintenance and catering.
This would mark progress toward ensuring natural resources benefit Ghanaians more directly, though the sector’s production challenges must be addressed to realize the full potential of enhanced local participation.
