New Oil Wells Boosts Ghana’s Crude Oil Output by 10.7% as Petroleum Receipts Reach $840.8 Million
Ghana’s crude oil sector has seen a significant boost in both production and revenues, following the activation of new wells under the Jubilee South East (JSE) project, a joint venture led by Tullow Oil.
According to the latest semi-annual report by the Public Interest and Accountability Committee (PIAC), this project has propelled a 10.7% increase in crude output, driving total petroleum receipts to a record $840.8 million in the first half of 2024—up 55.6% from the $540.5 million recorded in the same period last year.
The surge in revenues comes amid rising production volumes, which climbed from 22.45 million barrels in the first half of 2023 to 24.86 million barrels over the same period in 2024.
Contributing to this uptick were Tullow Ghana Limited, Kosmos Energy Ltd, and Petro SA Ghana Ltd, whose joint investments helped launch the JSE project offshore Ghana.
The project brought its first production well online last year, followed by two additional wells and a water injector, with cumulative investments topping $1 billion over the past four years.
Tullow Oil stated that investments in critical infrastructure for the JSE project have unlocked previously undeveloped reserves, driving the rise in production and revenues.
According to PIAC, Corporate Income Tax (CIT) from the oil sector doubled during this period, increasing by 115.5% from $166.51 million in H1 2023 to $358.8 million in 2024, reinforcing the government’s revenue base.
Carried Participating Interest (CAPI) revenue also rose sharply, up 33% year-on-year to $385.2 million, while royalties saw a moderate 10% increase, from $81 million to $89.1 million.
However, not all revenue streams saw gains. Surface rental fees declined by 33% from $659,118.48 in the first half of 2023 to $439,011.08 this year, although interest accrued on the Petroleum Holding Fund (PHF) soared by 160%, rising from $2.8 million to $7.2 million.
PIAC’s report underscored the composition of Ghana’s oil revenue, noting that CAPI contributed the highest share at 45.8%, followed by CIT at 42.7%, and royalties at 10.6%. Other income streams, such as surface rental fees and interest on the PHF, comprised less than 1% of total revenue.
The report reflects a promising outlook for Ghana’s oil sector as the Jubilee South East project continues to bolster national revenue, supporting economic growth amidst a backdrop of volatile global energy markets.
