The Africa Centre for Energy Policy (ACEP) has called for tougher oversight of the Ghana National Petroleum Corporation (GNPC). This demand comes as GNPC's statutory access to petroleum revenues is set to expire in 2026. ACEP warns that any extension of this funding must be linked to measurable performance and stronger governance.
Between 2011 and 2025, GNPC received approximately GHS 37 billion (US$3.20 billion) in public petroleum revenues. Kodzo Yaotse, ACEP's Policy Lead for Petroleum and Conventional Energy, stated that continued access should not be an automatic entitlement. He emphasized the need to tie any extension to the corporation's actual performance and business outcomes. This critical discussion occurred at a National Stakeholder Engagement organized by the Natural Resource Governance Institute.
This review is centered on Section 7(3) of the Petroleum Revenue Management Act. This section grants GNPC its Net Carried and Participating Interest entitlement for 15 years, starting in 2011. Without new legislation, GNPC would need to rely more on its own financial resources after 2026. This situation presents a significant moment for Ghana to reassess its national oil company's financial structure. The country faces competing fiscal needs, making efficient use of petroleum revenues crucial for national development.
ACEP's analysis of Public Interest and Accountability Committee reports highlights how GNPC used its allocations. About GHS 20.8 billion (US$1.79 billion) of the GHS 37 billion (US$3.20 billion) went towards equity financing costs in producing fields. Roughly GHS 16.2 billion (US$1.40 billion) was available for investments and operational expenditure. Mr. Yaotse questioned whether these investments have delivered adequate value for Ghana, given the substantial public funds involved.
The opportunity cost of these petroleum revenues is significant. These same resources could fund vital infrastructure, healthcare, education, or debt reduction. Such allocations must demonstrate commercially viable upstream capability to justify continued state support. GNPC has long aimed to transition from a state participant to an independent operator. Its 2012-2020 strategy targeted standalone operatorship by 2019. The current 2021-2030 strategy seeks a technically strong and financially independent operator by 2030.
However, ACEP argues that GNPC's execution has often fallen short of its ambitions. The Voltaian Basin project serves as a key example. GNPC initially planned to spend GHS 696 million (US$60 million) between 2015 and 2019 for seismic data and drilling two wells. By the end of 2025, ACEP reports that nearly GHS 1.74 billion (US$150 million) had been spent. While 1,832 line kilometers of seismic data were acquired, the two planned wells remain undrilled. Repeated delays raise concerns about GNPC's ability to execute complex projects within budget and schedule.
Another concern is the Saltpond decommissioning programme. Spending reportedly reached GHS 987 million (US$85.13 million) against an estimated GHS 765 million (US$66 million). The project remains only about 60.00% complete. These cost overruns and delays underscore ACEP's call for stricter financial discipline and project management. The financial pressures on GNPC are further compounded by substantial outstanding debts owed to it.
ACEP estimates that GNPC is owed approximately GHS 14.7 billion (US$1.27 billion). This includes GHS 7.9 billion (US$681 million) from the Ghana National Gas Company. The Volta River Authority owes GHS 1.87 billion (US$161 million) for gas supplied. Other exposures include GHS 1.8 billion (US$155 million) in heavy fuel oil-related payments and GHS 1.36 billion (US$117 million) for Karpower guarantees. These significant receivables highlight GNPC's role as a potential financing vehicle for other state entities. This role could undermine its commercial independence and financial health. The upcoming review provides a crucial opportunity to address these systemic issues and ensure GNPC's long-term viability and accountability to the Ghanaian public.