Editorial:Budget 2026 moves to reverse declining oil production

Ghana’s crude output has fallen to its lowest level in six years, deepening concerns over sustainability of the upstream petroleum sector and its capacity to support critical development financing.

Data from the Public Interest and Accountability Committee (PIAC) show that crude production dropped nearly 26 percent year-on-year in first-half 2025, falling to 18.42 million barrels from 24.86 million barrels in the same period last year.

The slump has severely constrained government revenue. PIAC data indicate that petroleum receipts plummeted by 56 percent – from US$840.77million in first-half 2024 to  US$370.34million for the same period of 2025.

As a result, government has reaffirmed its determination to halt the country’s half-decade decline in oil production by announcing more than US$3.5billion of new investment commitments, as the national oil company (NOC) prepares to begin offshore drilling in late 2026.

Presenting the 2026 Budget Statement and Economic Policy, Finance Minister Dr. Cassiel Ato Forson said the administration has taken “decisive action” to reverse the decline, which stood at 71.4 million barrels in 2019 to an estimated 36 million barrels for 2025.

The minister added that ongoing investor-focused reforms have already unlocked more than US$3.5billion in new commitments.

These include a US$2billion framework agreement covering the Jubilee and Tweneboa Enyenra Ntomme (TEN) fields for drilling 20 new wells, as well as a US$1.5billion Memorandum of Intent with partners in the Offshore Cape Three Points (OCTP) project to expand operations.

“Their entry is expected to bring new capital, technology and expertise to boost production,” he noted. Further, the Ghana National Petroleum Corporation (GNPC) will begin drilling in the offshore Voltain Basin from October 2026 and prospects for expanding Ghana’s hydrocarbon output “look encouraging”.

 

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