Ghana’s petroleum revenue increased by 52 per cent to US$561.41 million in the first half of 2026, up from US$370.34 million recorded during the same period in 2025, according to the Public Interest and Accountability Committee (PIAC).
The increase was driven mainly by higher realised crude oil prices and a corresponding 37 per cent rise in corporate income tax collections, the Committee said in its 2026 Semi-Annual Report on the Management and Use of Petroleum Revenues, covering January to June 2026.
However, PIAC cautioned that the revenue gains were largely price-driven, recommending that the Ministry of Finance treat them as volatile and ensure that any revenue exceeding the benchmark is transferred promptly to the Ghana Petroleum Funds in accordance with the Petroleum Revenue Management Act, 2011 (Act 815), as amended.
In a press statement dated October 21, 2026, PIAC said the report was available on its official website and provided an assessment of petroleum production, revenue receipts, allocations and the management of the Ghana Stabilisation Fund and the Ghana Heritage Fund.
The Committee, which is mandated to monitor and evaluate the management and use of Ghana’s petroleum revenues, said it had published 30 reports since its establishment.
Crude oil production increases
The report showed that crude oil production rose by 11.73 per cent, from 18.42 million barrels in the first half of 2025 to 20.58 million barrels in the corresponding period of 2026.
PIAC attributed the increase primarily to higher output from the Jubilee and SGN fields.
Despite the improvement, the Committee urged the government to develop a framework to attract investment into existing producing fields, particularly the Tweneboa-Enyenra-Ntomme (TEN) field, where production has underperformed initial projections.
It acknowledged government efforts to attract investors, including recent memoranda of understanding with Shell and Chevron, but called for improvements to the regulatory and fiscal frameworks, as well as data acquisition in new basins.
Gas flaring declines across producing fields
PIAC reported a marked reduction in gas flaring across the Jubilee, TEN and SGN fields in the first half of 2026 compared with the corresponding period in 2025.
The Committee commended field operators for the progress, which it said reflected improved compliance with flaring limits approved by the Environmental Protection Authority (EPA).
It, however, recommended that the EPA, in collaboration with the Petroleum Commission and the Energy Commission, establish a system to monitor and report gas venting volumes across all producing fields.
The proposed system, according to PIAC, would provide a more complete account of gas losses and emissions in Ghana’s upstream petroleum sector.
Surface rental arrears remain outstanding
The report also highlighted outstanding surface rental liabilities of approximately US$2.41 million at the end of June 2026, excluding US$1.73 million owed under terminated petroleum agreements.
Although the Ghana Revenue Authority (GRA) had made efforts to recover the outstanding amounts, PIAC called for stronger enforcement against operators that persistently default on their obligations.
It recommended the application of penalties and interest where appropriate and urged authorities to make the settlement of outstanding arrears a precondition for the renegotiation, renewal or reallocation of contract areas.
The Committee specifically cited the ongoing renegotiation involving Swiss African Oil Company Ltd. as an instance where outstanding liabilities should be addressed.
Concerns over gas revenue collection
PIAC raised concerns about the financial sustainability of the Ghana National Gas Limited Company (GNGLC), despite improved cash-flow predictability resulting from Volta River Authority (VRA) settlements and regular cash water methane (CWM) receipts.
The report indicated that the total value of CWM declined by 17.53 per cent year-on-year, while improvements in collections remained limited.
PIAC warned that continued financial pressure on GNGLC could threaten payments to the Ghana National Petroleum Corporation (GNPC) and undermine the long-term reliability of gas infrastructure and supply.
It urged GNGLC to strengthen its revenue collection arrangements, reduce outstanding receivables and consolidate improvements in payment discipline among major off-takers, particularly those with weaker collection ratios.
PIAC questions use of Jubilee equity financing
The report further raised concerns about GNPC’s use of petroleum revenue allocations, particularly funds intended to support production and development costs in the Jubilee field.
According to PIAC, GNPC received US$85.98 million, representing 39.9 per cent of the Annual Budget Funding Amount (ABFA) component identified in the report as CAPI, during the period.
However, only US$23.45 million of the US$40.14 million received as Jubilee Equity Financing was applied to Jubilee production and development costs.
The remaining US$16.69 million, together with GNPC’s Level B receipts, was used to finance non-field expenditure, including staff costs and the construction of the corporation’s corporate head office.
PIAC recommended that GNPC apply its Level A receipts strictly to its share of field production and development costs, as intended under Act 815, and account for the US$16.69 million that was not applied to Jubilee costs.
It also called on the Ministry of Finance to link the release of Level A funds to verified cash calls from operators.
Petroleum revenue utilisation data missing
PIAC disclosed that the section of the report covering the utilisation of petroleum revenues could not be included because the Ministry of Finance had not submitted the requested data.
The omission means the report does not provide the intended assessment of how petroleum revenues were utilised during the six-month period.
The Committee said its reports were intended to inform policy decisions, strengthen institutional accountability and promote the prudent, transparent and sustainable management of Ghana’s petroleum resources for the benefit of present and future generations.
Public urged to review report
PIAC has encouraged the public, media organisations and other stakeholders to access and review the full report on its official website, www.piacghana.org, and submit feedback through [email protected] or its published contact numbers and social media platforms.
The Committee also urged the media to analyse the report’s findings and recommendations to support informed public discussion on the management and use of Ghana’s petroleum revenues.
PIAC was established under Section 51 of the Petroleum Revenue Management Act and inaugurated on September 15, 2011, to monitor and evaluate compliance with the law.
The statement announcing the report’s publication was signed by PIAC Chair Richard Ellimah.
Source: www.kumasimail.com
