Ghana’s crude oil production saw a significant rebound in the first half of 2024, rising by 10.7% year-on-year, marking a reversal of a five-year decline, according to the country’s Public Interest and Accountability Committee (PIAC).
After peaking in 2010, Ghana’s oil output had been on a steady decline, reaching a five-year low in 2023. This drop was mainly due to reduced production from older fields, which could not offset the growth from new wells, as reported by Reuters.
However, PIAC’s report revealed that crude oil production surged to 24.86 million barrels by June 2024, compared to a 13.2% decrease during the same period in 2023.
The growth was primarily driven by the Jubilee South East (JSE) project, operated by Tullow Oil. Production from this project, which began in late 2023, contributed significantly to the recovery.
The JSE is part of the Jubilee field, Ghana’s first oil discovery, which had previously seen declines in output.
In addition to the rise in oil production, Ghana’s petroleum revenue surged by 56%, reaching $840.8 million by June 2024. Petroleum now accounts for around 7% of the country’s government revenue, according to PIAC.
Gas production also showed positive growth, increasing by 7.5% to reach 139.86 million standard cubic feet by June.
Despite the positive production figures, PIAC official Dwamena highlighted ongoing challenges in Ghana’s petroleum sector, including technical and natural obstacles. One key issue is the country’s legal requirement that petroleum companies allocate at least 12% of every project to the state as free and carried interest. This, Dwamena noted, can be a deterrent for investors, as the state can negotiate a higher percentage of carried interest, reaching up to 20%.
To drive future growth, Ghana plans to sell additional exploration rights, ensuring that fossil fuel resources are not left untapped. This strategy is expected to generate more revenue to support the country’s energy transition. Current oil companies operating in Ghana include Eni, Tullow, Kosmos, and PetroSA.
In August 2024, Ghana’s President Nana Akufo-Addo inaugurated the construction of a $12 billion oil refinery with a capacity of 300,000 barrels per day.
West Africa consumes around 800,000 barrels of oil daily, with nearly 90% of this demand met through imports. Ghana’s new petroleum hub aims to address this gap by meeting the region’s growing demand for refined oil products and by-products by 2036.
