An energy analyst has urged Ghana to urgently reform its upstream petroleum sector after a step fall in crude oil and overall petroleum revenues, raising concerns about the sustainability of the industry.
The Executive Director of the Centre for Environmental Management and Sustainable Energy (CEMSE), Mr. Benjamin Nsiah, made the call in an interview with Accra-based Citi FM’s Citi Business News, citing official data that point to one of the sector’s weakest performances in recent years.
He said declining production levels, waning investor interest and weaker future cash flows are undermining the sector at a critical time for the West African producer.
Official figures show crude oil lifting receipts fell to $198.25 million in the second half of 2025, down from $369.25 million a year earlier, a drop of more than 46%.
Total petroleum revenues declined by about 43% to $769 million in 2025 from roughly $1.3 billion in 2024, reflecting what Mr. Nsiah described as deep structural problems rather than short-term price effects.
He attributed the downturn mainly to reduced exploration and field development, which have curbed output and discouraged new investment.
Mr. Nsiah said Ghana’s oil production has halved in recent years, falling from around 70 million barrels to about 35 million barrels, underscoring the lack of major upstream investment since 2019.
He called for strong leadership from the Ministry of Energy and Green Transition to empower the Petroleum Commission to revise regulatory and investment frameworks.
Without decisive reforms, he warned, the sector risks becoming “almost comatose,” threatening state revenues and the financial health of the Ghana National Petroleum Corporation.
A prolonged slump, he added, could limit GNPC’s ability to fund exploration in areas such as the Volta Basin, deepening Ghana’s revenue challenges in the medium term.