Ghana’s crude oil production has surged with the launch of new wells under the Jubilee South East (JSE) project, resulting in a substantial boost to the nation’s petroleum revenue. The recent uptick marks a 10.7% rise in output and sets a new record for Ghana’s petroleum earnings.
According to the Public Interest and Accountability Committee (PIAC)’s semi-annual report for 2024, Ghana’s total petroleum receipts in the first half of 2024 soared by 55.6%, reaching $840.8 million, compared to $540.5 million during the same period in 2023. This revenue increase is largely driven by heightened crude oil production, which jumped from 22.45 million barrels in the first half of 2023 to 24.86 million barrels in the same period of 2024.
The report also points to a remarkable 115.5% increase in Corporate Income Tax (CIT) from petroleum companies, which grew from $166.51 million in the first half of 2023 to $358.8 million in 2024, further bolstering national revenue. Companies like Tullow Ghana Limited, Kosmos Energy Ltd, and Petro SA Ghana Ltd have been instrumental in driving this revenue growth.
In addition to CIT, Carried Participating Interest (CAPI) climbed by 33.03%, rising from $289.5 million in the first half of 2023 to $385.2 million in the first half of 2024. Royalty payments saw a 10% increase, up from $81 million in 2023 to $89.1 million in 2024. Meanwhile, surface rental fees experienced a decline of 33%, dropping from $659,118.48 in 2023 to $439,011.08 in 2024.
The report also highlights a sharp rise in interest on the Petroleum Holding Fund (PHF), which jumped by 160.2% from $2.8 million in 2023 to $7.2 million in 2024. Other income for the period amounted to $67,000.
Revenue contributions for the period are led by CAPI at 45.8%, followed by CIT at 42.7%, with royalties accounting for 10.6%. Revenue from surface rentals, PHF interest, and late payment interest together made up less than 1% of total earnings, as stated in the report.
The Jubilee South East project, a collaborative effort between Tullow Oil, Kosmos Energy, the Ghana National Petroleum Corporation (GNPC), Petro SA, and GNPC Explorco, has played a crucial role in Ghana’s recent oil production growth. The project, which began in July of the previous year, saw the launch of its first production well followed by two additional wells and a water injector—all brought online by the end of 2023.
Tullow Oil has reported that the joint venture partners invested over $1 billion over the past four years, building the infrastructure necessary to access and produce from previously untapped reserves. This investment has paved the way for Ghana’s significant rise in petroleum revenue, contributing to the record-breaking results reported by PIAC.
