Ghana’s petroleum revenue watchdog is considering escalating its $561 million dispute with the Ghana National Petroleum Corporation (GNPC) to the Supreme Court, after years of failed attempts to compel the corporation’s commercial subsidiary to remit funds into the state’s oil account.
The Public Interest and Accountability Committee (PIAC) Chairman Richard Ellimah confirmed at the launch of the committee’s 2025 Annual Report on April 8 that the standoff with GNPC over revenues held by Explorco, its commercial subsidiary, remains unresolved. He said both sides have exchanged positions repeatedly without movement, with PIAC insisting the $561 million generated from Explorco’s petroleum liftings between 2022 and 2024 belongs to the Ghanaian public and must be deposited into the Petroleum Holding Fund (PHF).
GNPC has maintained that revenues from Explorco liftings are not obligated to be deposited into the PHF, a position PIAC has repeatedly challenged, arguing that such proceeds constitute indirect state participation and must be accounted for under the Petroleum Revenue Management Act (PRMA).
With the impasse showing no sign of resolution, PIAC is now considering seeking a Supreme Court interpretation of the PRMA to establish a binding legal answer on whether a state-owned subsidiary can operate outside the country’s petroleum revenue laws.
The financial stakes extend beyond the headline figure. PIAC has separately raised alarm over GNPC’s decision to transfer major loan obligations, including crystallised guarantees related to Karpowership and a restructured facility involving Litasco, onto Explorco’s books. The committee warned these moves could saddle Explorco with debt and undermine its purpose as a self-sustaining commercial entity capable of supporting GNPC when petroleum holding fund disbursements eventually wind down.
The dispute is unfolding against a backdrop of sharply falling oil revenues. Total petroleum receipts for 2025 dropped to US$770.27 million, a 43.27 percent decline from the US$1.36 billion recorded in 2024, with crude production falling for a sixth consecutive year from 71.44 million barrels in 2019 to 37.3 million barrels in 2025.
PIAC also noted that in 2025, only US$1.87 million representing 0.43 percent of the Annual Budget Funding Amount (ABFA) was disbursed to the District Assemblies Common Fund (DACF) against the legally mandated five percent, describing this as a breach of the law and calling for corrective action.
A Supreme Court ruling, if pursued, would provide the first definitive legal determination on whether Explorco’s commercial structure shields its oil revenues from statutory accountability requirements, a question with lasting consequences for the governance of Ghana’s petroleum wealth.
