Key Points
- Oil production rose 10.7% year-over-year.
- Revenue from oil surged 56% to $840.8 million.
- Challenges include high state interest requirements.
Ghana’s crude oil production experienced a 10.7 percent year-on-year increase in the first half of 2024 after a successive decline for five years.
According to Ghana’s Public Interest and Accountability Committee (PIAC), total production reached 24.86 million barrels by June 2024, driven by the Jubilee South East (JSE) project operated by Tullow Oil, which began production in late 2023.
The production boost contrasts with a 13.2 percent decline during the same period in 2023, PIAC reported, and reflects growing momentum in the country’s oil sector.
Ghana’s petroleum revenue up 56%, boosting economy
Petroleum revenue surged by 56 percent to $840.8 million by June 2024, reinforcing oil’s critical role in Ghana’s economy, contributing approximately 7 percent of government revenue. Ghana’s gas output also grew by 7.5 percent, reaching 139.86 million standard cubic feet by mid-year.
PIAC coordinator Isaac Dwamena expressed optimism that sustained increases could reverse Ghana’s recent declines, positioning the sector for long-term stability.
Challenges and future expansion plans
Despite the progress, Ghana’s oil sector continues to face hurdles. Dwamena cited challenges tied to the country’s free-carried interest policy, which requires oil firms to allocate at least 12 percent of each project to the state, increasing investment costs and potentially deterring future investments.
To mitigate these issues and drive production growth, Ghana plans to expand exploration rights to prevent stranded assets and support its energy transition goals.
Key operators in Ghana’s oil sector include Eni, Tullow, Kosmos, and PetroSA, with the government hoping that new exploration projects will further fuel production and economic growth.
