Ghana’s crude oil production increased by 10.7% in the first half of 2024, marking a promising turnaround from the 13.2% decline seen in the previous year. Production rose from 22,452,078.81 barrels (bbls) in the first half of 2023 to 477.52 bbls in the same period in 2024.
This improvement is attributed to new wells coming online under the Jubilee South East (JSE) project, which has driven production gains.
Revenue surge reaches highest levels since 2012
This uptick in production contributed to a 55.6% increase in total petroleum receipts, which rose from $540,456,124.27 in the first half of 2023 to $840,765,265.80 in 2024.
This figure represents the highest revenue for the first half of the year since 2012.
Mr. Constantine Kudzedzi, Chairman of the Public Interest and Accountability Committee (PIAC), highlighted these gains in the 2024 Semi-Annual Report on the Management and Use of Petroleum Revenue.
Field contributions to oil and gas production
The report notes that the SGN field accounted for 20% of Ghana’s oil production, while the Jubilee and TEN fields contributed 66% and 14%, respectively.
Gas production was also strong during this period, with total production reaching 139,866.92 million standard cubic feet (MMSCF). The SGN field led gas production with a 49% share, while Jubilee and TEN contributed 30% and 21%, respectively.
Breakdown of petroleum revenue sources
The total petroleum receipts for the first half of 2024 included $385,172,660.26 from Carried Participating Interest (CAPI), $358,834,612.60 in Corporate Income Tax (CIT), $89,102,349.89 from royalty payments, $7,149,729.42 from the Petroleum Holding Fund, $439,011.08 from surface rentals, and $66,902.55 from other sources.
Outstanding arrears and funding priorities
The PIAC report raised several critical points, including surface rental arrears totaling $1.2 million as of June 2024.
This figure does not account for terminated petroleum agreements. Additionally, the report noted a lack of allocation or disbursement for Ghana’s Industrialization priority area and the retention of a cap on the Ghana Stabilization Fund at $100 million.
The committee recommended that Parliament review the cap on the Ghana Stabilization Fund to increase financial resilience.
It also urged the Ghana Revenue Authority to intensify efforts to recover the outstanding surface rental arrears.
PIAC called on the Ministry of Finance to prioritize and commit funds to industrialization initiatives, emphasizing the importance of demonstrating a clear strategy in resource allocation for national development.
