Ghana Records $668.7 Million Total Upstream Expenditure in H1 2024
Ghana’s oil sector recorded a total upstream expenditure of $668.7 million across the Jubilee, TEN, and Sankofa-Gye Nyame (SGN) oil fields in the first half of 2024, reflecting a significant reduction from $809.2 million in the same period last year.
The 2024 Semi-Annual Report by the Public Interest and Accountability Committee (PIAC) attributes the decline to cost-cutting measures and strategic realignments by operators.
Spending on the Jubilee field amounted to $333.96 million in H1 2024, a drop from $435.33 million in H1 2023. Production costs, which cover Business Management & Assurance, Operations and Maintenance (O&M) Contractor expenses, logistics, and subsea activities, fell to $92.13 million from $121.84 million year-on-year.
Development spending also contracted, reaching $241.82 million compared to $313.49 million previously, while an exploratory study cost of $6,000 was incurred.
On the TEN field, total petroleum expenditure declined to $174.90 million in H1 2024 from $202.84 million the previous year.
Production costs stood at $58.48 million against $75.83 million in H1 2023, reflecting streamlined spending on contractor services, logistics, and business management.
Development costs, primarily for the FPSO (Floating Production Storage and Offloading) charter and development wells, dropped to $116.38 million from $126.70 million. An exploratory study incurred a cost of $32,000.
The SGN field reported a total expenditure of $159.93 million in H1 2024, down from $171.16 million in H1 2023. Production costs reached $95.09 million, falling from $104.74 million, with key expenses directed towards FPSO operations, maintenance, and transport.
Development spending also saw a reduction to $64.84 million from $66.42 million. FPSO leasing remained a substantial component of the field’s expenditure structure.
The PIAC report highlights a sector-wide recalibration as operators focus on reducing operational expenditure amidst persistent global price volatility. These adjustments underscore the oil sector’s adaptation to evolving market conditions, with Ghana’s upstream operators managing expenditure to sustain long-term field viability while navigating economic uncertainty.
