Ghana has achieved a significant milestone with a 10.7% year-on-year rise in crude oil production during the first half of 2024, marking the first production increase since a decline began five years ago, according to the Public Interest and Accountability Committee (PIAC).
Production reached 24.86 million barrels by mid-2024, contrasting sharply with the 13.2% decrease during the same period in 2023. The turnaround is attributed mainly to Tullow Oil’s Jubilee South East (JSE) project, which began operations in late 2023 and revitalized output at the Jubilee oil field, Ghana’s first and once most productive field.
“We are optimistic that this growth in the first half of 2024 will continue, reversing the trend of annual declines,” stated Isaac Dwamena, coordinator of the PIAC Secretariat.
The PIAC report also highlighted a 56% surge in petroleum revenue to $840.8 million by June 2024, fueled by higher production. Oil revenues contribute approximately 7% to Ghana’s government income.
Gas production similarly improved, with a 7.5% increase to 139.86 million standard cubic feet by June. However, challenges persist due to natural and technical factors affecting the sector.
Dwamena pointed out the high costs imposed on investors by the legal requirement that companies allocate at least 12% of project stakes to the state. “The state can take up to 15% or 20% carried interest based on negotiations, and this often acts as a deterrent,” he explained.
To sustain growth and support its energy transition, Ghana is looking to auction additional exploration rights, aiming to monetize untapped resources and enhance production.
