Petroleum Sector Arrears Rise to US$2.8m as Oil Revenues Slump
Surface Rental arrears within Ghana’s petroleum sector have surged to US$2.82 million in the first half of 2025, even though actual collections exceeded the Ghana Revenue Authority’s (GRA) full-year target. This is according to the latest half-year report released by the Public Interest and Accountability Committee (PIAC).
PIAC’s data show that arrears at the end of June 2025 stood significantly higher than the US$439,011 recorded during the same period in 2024. Despite the build-up, the GRA collected US$863,046 in Surface Rentals by mid-year 14.3 per cent above its annual estimate of US$755,235. Surface Rentals remain one of the five recognized streams of petroleum revenue.
The Committee attributed the rise in collections largely to payments made by Goil Upstream Limited, Springfield E&P, OPCO and Base Energy to settle outstanding balances. Out of 13 licensed entities, however, only eight honored their obligations during the period.
PIAC noted that GRA has commenced enforcement actions aimed at recovering all outstanding arrears, including debts owed by three companies whose petroleum agreements were revoked by the Minister for Energy for non-compliance with contractual terms. These firms, UB Resources Limited, Britannia-U and Swiss African Oil Company Limited, owe a combined US$1,728,124 in Surface Rentals.
The Committee called on the GRA, Petroleum Commission, Bank of Ghana, Ministry of Energy and other relevant institutions to strengthen coordination in order to accelerate recovery efforts.
The rise in arrears comes against the backdrop of a steep downturn in the upstream petroleum sector. Ghana’s crude oil output fell by 25.92 per cent, dropping from 24.86 million barrels in the first half of 2024 to 18.42 million barrels in the first half of 2025.
This production decline translated into a sharp fall in inflows to the Petroleum Holding Fund (PHF). Total receipts fell by 56 per cent, from US$840.77 million in H1 2024 to US$370.34 million in H1 2025. Revenue sources included Corporate Income Tax, Surface Rentals, crude oil liftings, and interest earned on balances lodged in the PHF.
CAPI (Carried and Additional Participating Interest) contributed the largest share of receipts at US$178.48 million, representing 48 per cent. CIT accounted for US$148.75 million (40 per cent), while royalties generated US$40.15 million (10.8 per cent). Surface Rentals and interest on the PHF contributed less than one per cent each.
PIAC reiterated that: “With passage of the Petroleum Revenue Management Regulations (PRMR), 2019 (L.I 2381), GRA continued its vigorous drive to recover all outstanding payments in respect of Surface Rental Taxes.”
The Committee further disclosed that the GRA has extended recovery efforts beyond Ghana’s borders, with the Exchange of Information Unit tracking the overseas activities of companies with terminated petroleum agreements, in a bid to reclaim outstanding tax liabilities.
