Ghana’s crude oil production has surged significantly, propelled by the recent commissioning of new wells under the Jubilee South East (JSE) project. This increase in output has contributed to record-high petroleum revenue for the country.
According to the latest report from the Public Interest and Accountability Committee (PIAC), total petroleum receipts reached $840.8 million in the first half of 2024—a 55.6% jump from $540.5 million recorded in the same period in 2023.
The PIAC report reveals that crude oil production rose by 10.7%, with volumes increasing from 22.45 million barrels in the first half of 2023 to 24.86 million barrels in 2024.
This increase has bolstered various revenue streams, including Corporate Income Tax (CIT), which saw an impressive 115.5% rise, reaching $358.8 million from $166.51 million in 2023.
CIT alone accounted for 42.7% of the overall petroleum revenue, underscoring its growing importance in Ghana’s oil economy.
Another key revenue source, Carried Participating Interest (CAPI), saw a 33.03% increase, growing from $289.5 million in the first half of 2023 to $385.2 million in 2024. CAPI remains the largest contributor to Ghana’s petroleum revenue, accounting for 45.8% of total receipts.
Meanwhile, royalty payments rose by 10%, totaling $89.1 million, although surface rental fees declined by 33%, down to $439,011 from $659,118 in 2023.
Interest earnings on the Petroleum Holding Fund (PHF) experienced remarkable growth, rising by 160.2% from $2.8 million in 2023 to $7.2 million in 2024. The report also highlighted other income sources amounting to $67,000.
The distribution of total revenue reflects a balanced reliance on key revenue streams: CAPI (45.8%), CIT (42.7%), royalties (10.6%), and other smaller streams such as surface rental and PHF interest.
This recent growth in oil revenue can be attributed to the JSE project, launched in July of the previous year.
A collaborative effort by Tullow Oil, Kosmos Energy, the Ghana National Petroleum Corporation (GNPC), Petro SA, and GNPC Explorco (formerly Jubilee Oil Holdings), the JSE project began its first production well in mid-2023.
This was soon followed by two additional production wells and a water injector, all of which were fully operational by the end of last year.
The Jubilee South East development marks a significant milestone for Ghana’s petroleum sector, bringing previously untapped reserves into active production.
Tullow Oil reported that the joint venture partners have collectively invested over $1 billion in the JSE project over the past four years, focusing on drilling new wells and installing vital infrastructure.
This strategic investment has unlocked new reserves, boosting Ghana’s capacity for crude oil production and securing the country’s position as a key oil producer in the region.
The increased petroleum revenue is expected to strengthen Ghana’s economy, providing additional funds for development projects, social programs, and potential debt relief.
The government and stakeholders in the petroleum industry are optimistic that these gains can be sustained through careful management of resources, strategic reinvestments, and further exploration of Ghana’s offshore oil reserves.
