Ghana’s domestic petroleum revenue took a sharp hit in the latter half of 2024, plummeting by 62.63 percent as figures dropped from US$840.77 million in the first half to US$517 million by year’s end.
This news, detailed in the Bank of Ghana’s latest Petroleum Funds Report, has stirred apprehension among industry watchers who worry about the long-term sustainability of the sector—even as total annual receipts reached roughly US$1.3 billion.
The report paints a picture of mixed fortunes. While the early part of the year saw strong financial inflows, the second half was less robust. Between July and October, crude oil liftings from the Jubilee, TEN, and Sankofa Gye Nyame fields generated US$369 million, contributing significantly to the overall revenue. Meanwhile, additional sources such as US$144 million in corporate taxes, modest Surface Rental fees from Planet One Oil and Gas Limited, and accrued interest from the Petroleum Holding Fund helped push the H2 total past the half-billion-dollar mark.
A closer look at the allocation of funds reveals a strategic effort to balance immediate needs with future security. Out of US$454 million directed to Ghana’s Petroleum Funds, US$136.2 million was channeled into the Ghana Heritage Fund, an initiative aimed at preserving national wealth for future generations. The remaining US$317.8 million found its way into the Ghana Stabilisation Fund, designed to act as a buffer against the unpredictable swings of oil prices. Despite a notable 55.6 percent increase in lodgments into the Petroleum Holding Fund during the first half of 2024 compared to the same period in 2023, the revenue downturn in the latter months highlights underlying issues in production.
Industry insiders are particularly concerned about a trend that has persisted for years. Ghana’s oil output, which once peaked at 71.44 million barrels in 2019, has steadily declined to 48.25 million barrels by 2023—an average annual fall of about 9.2 percent. The country’s three main fields share the burden, with the Jubilee Field producing 63 percent of the output, the TEN fields 14 percent, and the Sankofa Gye Nyame field 23 percent. Gas production, too, reflects this uneven performance, with the SGN Field contributing half of the 255 million standard cubic feet produced in 2023.
Despite cumulative petroleum revenue reaching US$10.69 billion since the advent of production in 2011—a record for Ghana—the downward trajectory in production has prompted urgent calls for action. The Public Interest and Accountability Committee (PIAC) has repeatedly urged the government to invest in exploration data and overhaul regulatory frameworks to attract fresh capital. PIAC’s recommendations underscore a simple truth: without immediate measures to rejuvenate production and tap into unexploited reserves, Ghana risks compromising the long-term benefits that the petroleum sector has historically provided.
Analysts caution that the current scenario, with its stark contrast between early-year gains and later losses, serves as a wake-up call. While government revenues continue to fund infrastructure projects, social programs, and economic growth, the decline in production could spell trouble for a sector that has long been a cornerstone of national finances. As policymakers weigh their options, the need for a balanced strategy—one that nurtures both revenue generation and sustainable production—has never been more apparent.
