Ghana’s petroleum sector contributed significantly to the national coffers during the first half of 2025, generating $370.62 million in revenue. This income stream, meticulously tracked and managed under the Petroleum Revenue Management Act (PRMA), flowed from three primary sources: the sale of crude oil, various petroleum-related inflows like taxes and fees, and returns on investments held within the Petroleum Holding Fund (PHF). The detailed breakdown reveals the intricate financial mechanics of Ghana’s oil and gas sector and its impact on the nation’s finances.
The lion’s share of the revenue, amounting to $218.63 million, originated from crude oil liftings. This figure represents the proceeds from multiple extractions at the Jubilee and Sankofa-Gye Nyame (SGN) fields, highlighting the operational efficiency and productivity of these key offshore assets. These liftings, numbered sequentially, demonstrate the ongoing, rhythmic nature of oil production and its crucial role in generating consistent income for the country. The revenue from these sales forms the bedrock of the petroleum sector’s contribution to the Ghanaian economy.
Supplementing the revenue from crude oil sales, a further $148.75 million was accrued from other petroleum-related activities. This substantial sum encompasses various financial inflows, including corporate income taxes levied on the profits of operating companies, surface rental fees paid for the use of land for exploration and production activities, and final tax payments made by major players in Ghana’s upstream oil sector. Key contributors to this revenue stream included prominent international companies such as Kosmos Energy, Tullow Ghana, ENI Ghana, and Petro SA, underscoring the involvement of both local and international entities in Ghana’s petroleum industry.
The Petroleum Holding Fund (PHF), designed to manage and invest petroleum revenues, also generated income through investment interest, adding a further $3.24 million to the total revenue. While comparatively smaller than the other two revenue streams, the PHF’s contribution underscores the importance of prudent financial management and investment strategies in maximizing the benefits derived from Ghana’s petroleum resources. This approach ensures that a portion of the revenue generates further income through strategic investments.
In accordance with the PRMA’s stipulations for revenue allocation, a significant portion of the total earnings was directed towards the Ghana Petroleum Funds (GPFs). Specifically, $63.53 million was transferred to the GPFs, which are further divided into two distinct funds: the Ghana Stabilisation Fund (GSF) and the Ghana Heritage Fund (GHF). The GSF, designed to cushion the economy against volatile oil prices, received $44.47 million, while the GHF, intended for long-term savings and investment for future generations, received $19.06 million. This allocation strategy reflects a balanced approach to utilizing petroleum revenues, addressing both present needs and future prosperity.
The performance of the two funds during the first half of 2025 diverged significantly. The GSF, starting with a balance of $196.92 million, experienced a net decrease despite receiving allocations and investment interest totaling $47.33 million. This reduction was primarily due to government withdrawals amounting to $121.33 million, leaving the fund with a balance of $122.91 million by the end of June. The withdrawals, likely necessitated by pressing government expenditures, highlight the challenges of balancing short-term fiscal needs with long-term savings goals.
In stark contrast to the GSF, the GHF exhibited robust growth. Benefitting from investment interest income of $23.92 million, the fund’s balance swelled from $1.26 billion to $1.3 billion. Notably, no withdrawals were made from the GHF during this period, reinforcing its role as a long-term savings vehicle. This unwavering commitment to preserving the GHF demonstrates a prudent fiscal approach, safeguarding resources for future generations. The growth of the GHF, despite no new allocations during this period, highlights the effectiveness of its investment strategy.
Finally, the report reveals a notable absence of transfers to the Annual Budget Funding Amount (ABFA), which typically receives a portion of petroleum revenues to support the national budget. This omission was attributed to delays in receiving certain corporate tax payments from the first quarter. These delayed payments are expected to be allocated to the ABFA in the second half of the year, ensuring that the budget receives its designated share of petroleum revenues. This temporary delay underscores the dependence of the national budget on timely revenue inflows from the petroleum sector.
