Ghana’s oil output has fallen sharply from 71.4 million barrels in 2019 to 37.3 million barrels in 2025, raising concerns about the sustainability of petroleum revenues that support the country’s budgets, infrastructure projects, and local development programs.
The steep decline marks the sixth consecutive year of falling production, representing a compounded annual decrease of around 9 percent, according to the 2025 Annual Report by the Public Interest and Accountability Committee (PIAC).
Ghana, which became an oil-producing nation in the late 2000s, has relied heavily on petroleum revenue as a “cash cow” for government financing. Oil earnings fund critical infrastructure initiatives and local development programs, including the District Assemblies Common Fund (DACF), which in 2025 received only 0.43 percent of its expected allocation, far below the statutory minimum of 5 percent.
Drivers of the decline
The PIAC report identifies multiple factors behind the slump in production:
- Maturing fields: The country’s main oilfields – Jubilee, TEN, and Sankofa – are experiencing natural reservoir depletion. “The easy oil has been extracted,” the report notes, highlighting the aging of these primary sources.
- Low investment: Over the past five years, no new petroleum agreements were signed, leaving no replacement projects to sustain output.
- Technical challenges: Operational difficulties, including maintenance shutdowns and complex geology, have limited production. In the TEN field, 81 percent of gas had to be reinjected just to maintain oil flow, illustrating efficiency constraints.
- Reduced drilling: Activity in the TEN field has fallen sharply, with production declining from 40,000 barrels per day in 2017 to roughly 16,000 barrels per day in 2025.
The overall effect is a 43 percent drop in petroleum revenues in just one year, putting pressure on the government’s infrastructure programs, social initiatives, and employment opportunities tied to the sector.
Impact on Ghanaians
The decline in oil production has far-reaching consequences. Reduced revenue affects national projects, local governance, and social programs, with funding shortfalls trickling down to ordinary citizens. Farmers, students, and local entrepreneurs, who benefit from oil-backed initiatives, face uncertainty as the state’s capacity to support development diminishes.
Calls for reform
PIAC is urging urgent action, including renewed investment in existing fields, legal and regulatory reforms, and exploration of new oil basins to replace declining reserves. The report emphasizes the need for transparency and fresh investment as the only way to prevent further erosion of Ghana’s oil-dependent fiscal stability.
Ghana’s oil sector has been a major source of both direct and indirect employment, contributing significantly to the country’s socio-economic development. The current decline underscores the challenges of sustaining a resource-dependent economy amid aging fields and limited new discoveries.
Experts warn that unless decisive measures are taken, the country risks further revenue shortfalls that could undermine infrastructure development, social programs, and long-term economic stability.
While the story of Ghana’s oil is not over, 2025 represents a critical turning point, signaling the urgent need for policy reform, investment, and exploration to secure the future of the sector and the country’s economic prospects.
