Introduction to Ghana’s Petroleum Revenues
Ghana’s petroleum revenues have taken a significant hit in the first half of 2025. According to the Bank of Ghana, revenues from petroleum fell by more than half, dropping 56 percent year-on-year to US$370.6 million. This decline is a stark contrast to the same period in 2024, when receipts stood at US$840.8 million.
Causes of the Decline
The slump in petroleum revenues can be attributed to a 25.5 percent drop in the volume of crude oil lifted by the Ghana Group. In the first half of 2024, 3.77 million barrels were lifted, compared to 2.81 million barrels in the first half of 2025. Furthermore, the average achieved price for crude oil also dropped from US$84.08 per barrel to US$75.69 over the same period.
Historical Context
Ghana’s crude oil production has been on a downward trajectory since 2019, when output peaked at 71.44 million barrels. By the end of 2024, production had dropped to 48.25 million barrels, representing a 7.4 percent average decline over five years. The situation worsened in the first half of 2025 due to operational disruptions, including a 14-day shutdown of production activities.
Impact on Government Revenue
The collapse in petroleum receipts has significant implications for government revenue. Mark Obeng Adu Agyemang, Technical Manager-Public Interest and Accountability Committee (PIAC), noted that additional production-related issues, including unscheduled shutdowns, have undermined output and, by extension, government revenue. The lack of fresh investments in the upstream oil sector has also raised concerns about long-term sustainability.
Concerns Over Long-Term Sustainability
The Africa Centre for Energy Policy (ACEP) has expressed alarm at the continued drought in exploration, with no new petroleum agreement signed in 2024. This marks the fifth consecutive year without a new deal, with the last agreement inked in 2018. Kodzo Yaotse, Policy Lead for Petroleum and Conventional Energy at ACEP, warned that the sharp decline in revenue will constrain the government’s ability to fund critical development initiatives.
Conclusion
In conclusion, Ghana’s petroleum revenues have declined significantly in the first half of 2025, primarily due to a drop in crude oil production and average achieved price. The lack of fresh investments in the upstream oil sector has raised concerns about long-term sustainability, and the government’s ability to fund critical development initiatives may be constrained. It is essential for stakeholders to address these challenges and work towards reviving the petroleum sector to ensure a stable and sustainable revenue stream for the country.
