PIAC orders GNPC, Explorco to account for US$561.8 million in petroleum revenues

The Public Interest and Accountability Committee (PIAC) has directed the Ghana National Petroleum Corporation (GNPC) and its subsidiary, Explorco, to fully account for petroleum revenues totaling US$561.8 million owed to the state and ensure that the funds are paid into the Petroleum Holding Fund.

Presenting the Committee’s 2025 Annual Report in Accra, Chairman Richard Ellimah disclosed that the amount represents petroleum revenues accrued between 2022 and 2024 that were not properly accounted for by Explorco.

He stressed that the failure to reconcile and remit the funds undermines transparency and accountability in the management of Ghana’s petroleum resources.

The Committee also raised concerns about the transfer of US$434.55 million in 2025 from the Annual Budget Funding Amount by the Ministry of Finance to a Special Purpose Vehicle established by the Ghana Infrastructure Investment Fund. The funds are intended to support infrastructure projects under the government’s “Big Push” initiative.

Mr Ellimah urged the Finance Minister to strictly adhere to parliamentary approvals in the disbursement of ABFA allocations, particularly with respect to statutory payments to the District Assemblies Common Fund.

He noted that GIIF has indicated the transferred funds are currently held in a suspense account at the Bank of Ghana pending the completion of feasibility studies for the proposed Accra Kumasi Expressway.

Although PIAC acknowledged recent amendments to the Petroleum Revenue Management Act that prioritise the use of ABFA for infrastructure, especially legacy projects such as the Accra Kumasi Expressway, it expressed concern over the absence of detailed public information on the project.

According to the Committee, key details including the project scope, contractor, contract value, and payments made to date have not yet been disclosed by government.

The report further highlighted non-compliance with statutory ABFA allocations. In 2025, only US$1.87 million, representing 0.43 percent of ABFA, was transferred to the District Assemblies Common Fund instead of the mandated five percent, equivalent to US$21.67 million, as required under the PRMA.

PIAC described the shortfall as a breach of the law and called for corrective measures.

Despite these challenges, the Committee pointed to some positive returns from previous investments. It noted that a US$30 million ABFA investment by GIIF in the Accra International Airport generated US$17.9 million in interest and fees between 2017 and 2025, representing nearly 60 percent of the initial investment.

On the upstream sector, PIAC urged government, through the Petroleum Commission, to establish a comprehensive framework to stimulate investment in existing oil fields, particularly the Tweneboa Enyenra Ntomme field, where production has underperformed expectations.

The Committee also called for improvements in regulatory and fiscal policies, alongside increased data acquisition in new exploration basins to support future discoveries.

The report indicated a continuing decline in oil production, with crude output falling for the sixth consecutive year. Production dropped from a peak of 71.44 million barrels in 2019 to 37.3 million barrels in 2025, reflecting an average annual decline of about nine percent.

Mr Ellimah warned that the trend suggests Ghana’s oil fields may have reached maturity and are now in decline.

Total petroleum receipts for 2025 amounted to US$770.27 million, representing a 43.27 percent decrease from the US$1.36 billion recorded in 2024. The decline was attributed to reduced production volumes and lower global crude oil prices.

Corporate Income Tax remained a major contributor to petroleum revenues, generating US$346.85 million into the Petroleum Holding Fund, with key contributors including ENI Ghana, Vitol Upstream, and Tullow Ghana.

PIAC emphasised that its findings are intended to inform policy direction and promote prudent, transparent, and accountable management of Ghana’s petroleum revenues.