The Public Interest and Accountabiity Committee (PIAC) has observed in its report a marked reduction in gas flaring across all three producing fields in first half of 2026 (Jubilee: 74.02 percent; TEN: 40.79 percent; SGN: 79.73 percent) compared with first half pf 2025 (Jubilee: 6,155.77 MMSCF; TEN: 2,799.59 MMSCF; SGN: 4,888.19).
PIAC says this reflects improved compliance with Environmental Protection Agency (EPA)-approved flaring limits, and commends the operators for this progress.
For period-by-period comparison, PIAC said, crude oil production increased by 11.73 percent, from 18,415,410.74 bbls in first half of 2025 to 20,575,376.56 bbls in first half of 2026, primarily due to increased output in the Jubilee and SGN fields.
Total petroleum receipts for the period increased by 52 percent, from US$370,343,681.17 in first half of 2025 to US$561,408,307.36 in firest half 2026, driven mainly by significantly higher achieved crude oil prices during the period and a corresponding 37 percent increase in Corporate Income Tax collections.
The report also noted that despite efforts by the Ghana Revenue Authority (GRA) to recover outstanding liabilities, Surface Rental arrears stood at approximately US$2.41 million as at the end of first half of 2026 (excluding US$1.73 million owed under terminated Petroleum Agreements).
Although VRA settlements and regular cash waterfall mechanism (CWM) receipts improved, ot said. cash-flow predictability in the first half of 2026, a 17.53% year-on-year decline in total CWM value and narrow collection improvements continue to strain Ghana National Gas Company Limited (GNGLC’s) financial viability, threatening upstream payments to GNPC and the long-term reliability of gas infrastructure and supply.
“GNPC received US$85.98 million (39.9 percent of CAPI) during the period but applied only US$23.45 million of the US$40.14 million received as Jubilee Equity Financing to Jubilee production and development costs.
“The balance of US$16.69 million, together with GNPC’s Level B receipts, financed non-field expenditure, including staff cost and corporate head office construction,” PIAC said in a statement.
In making recommendations, PIAC said that the EPA, in collaboration with the Petroleum Commission and the Energy Commission, establish a system for monitoring and reporting gas venting volumes on all producing fields, to provide a complete account of gas losses and emissions in the upstream sector.
PIAC notes the efforts made by the government to attract investors, including the recent MoUs with Shell and Chevron, but reiterates its call on the government, through the Petroleum Commission, to develop a framework to improve investment in existing producing fields, particularly the TEN field where production has underperformed initial projections, improve the existing regulatory and fiscal frameworks, and data acquisition in new basins.
“Since the increase in receipts was driven mainly by high achieved crude oil prices, PIAC recommends that the Ministry of Finance should treat the gains as volatile. Any excess over the Benchmark Revenue should continue to be transferred promptly to the Ghana Petroleum Funds in accordance with Act 815.
“PIAC is of the view that there is the need for the GRA to take decisive enforcement action against persistently defaulting operators, including the application of penalties and interest. Settlement of all outstanding arrears should be a precondition for any renegotiation, renewal or reallocation of a contract area, including the ongoing renegotiation by Swiss African Oil Company Ltd.
“GNGLC should strengthen its collection arrangements to convert processed gas sales revenue into timely, predictable cash receipts. Priority should be given to reducing outstanding receivables and consolidating the recent improvement in payment discipline among major off-takers, particularly those with weaker collection ratios,” it said.It added that ” GNPC should apply its Level A receipts strictly to its share of field production and development costs, as intended under Act 815, and account for the use of the US$16.69 million of Jubilee Equity Financing that was not applied to Jubilee costs. The Ministry of Finance should link the release of Level A funds to verified cash calls from the operators.”
Source: 3news.com