Ghana’s Extractive Sector in Flux: Local Ownership Expands in Mining Amid Declining Oil Production and Revenue Concerns

Ghana’s extractive industries are witnessing a period of significant transition, marked by a historic shift toward local ownership in the mining sector and mounting alarms over the sustainability of petroleum output. In a landmark development for indigenous enterprise, Engineers and Planners (E&P) Company Limited has been awarded the operational lease for the Damang Gold Mine. Emerging as the top bidder with a score of 93.15%, E&P outperformed international competitors by demonstrating robust technical competence and securing $505 million in financial backing from ABSA and Stanbic Bank. The Minerals Commission has staunchly defended the selection process against allegations of favoritism, asserting that the award was strictly merit-based and aligned with national goals to increase local participation in high-value mining operations. E&P is scheduled to assume full control on April 18, 2026, following the transition of the asset from Gold Fields to the state.

While the mining sector celebrates local gains, the 2025 Annual Report from the Public Interest and Accountability Committee (PIAC) paints a somber picture of the nation’s petroleum industry. Ghana’s crude oil production has plummeted for the sixth consecutive year, falling from a 2019 peak of 71.44 million barrels to just 37.3 million barrels in 2025. This represents a compounded annual decline of approximately 9%. Although the Jubilee Field remains the most productive asset, contributing significantly to the 694 million barrels produced since 2010, the lack of new investments and underperformance in fields like TEN have sparked fears regarding the country’s long-term energy security and fiscal stability. PIAC Chairman Richard Ellimah has urged the government to collaborate with the Petroleum Commission to establish a framework that attracts fresh capital to stabilize production levels.

Beyond production declines, the PIAC report has raised serious questions regarding financial transparency and revenue management. A staggering US$561 million in petroleum revenue is reportedly missing or unaccounted for by Explorco, a subsidiary of the Ghana National Petroleum Corporation (GNPC), covering the period between 2022 and 2024. This discrepancy is compounded by a 61.55% drop in GNPC receipts over the past year, largely due to reduced share allocations and a total lack of recorded receipts from the TEN oil field despite ongoing lifting operations. PIAC has called for an immediate audit and for these funds to be deposited into the Petroleum Holding Fund to protect the state's interests. This call for oversight is mirrored in the mining sector, where analysts are currently scrutinizing the financing structure of the Bogoso–Prestea Mine after Heath Goldfields Limited secured a $65 million loan against the mine’s assets, despite previously pledging a $500 million investment partnership.

These developments underscore a critical juncture for Ghana’s economy, where the promise of local industrial empowerment must be balanced against the urgent need for regulatory transparency and investment in aging resource fields. As Engineers and Planners prepares to revitalize the Damang Mine, the government faces the dual challenge of addressing the $561 million revenue gap and reversing the downward trend in oil production. The success of these sectors will depend heavily on the state's ability to enforce accountability within its subsidiaries and create a stable environment that encourages both indigenous growth and international partnership. The coming years will be decisive in determining whether Ghana can maximize the benefits of its natural resource wealth for national development or succumb to the pressures of dwindling output and fiscal mismanagement.