Ghana’s oil industry has experienced a significant rise in production and revenue, driven by the new Jubilee South East (JSE) project, a joint venture led by Tullow Oil. According to the Public Interest and Accountability Committee’s (PIAC) latest semi-annual report, this project has fueled a 10.7% increase in crude oil output, raising petroleum revenues to a record $840.8 million in the first half of 2024—a 55.6% jump from the $540.5 million recorded in the same period last year.
The increase in revenue comes amid a production boost, with output rising from 22.45 million barrels in the first half of 2023 to 24.86 million barrels in 2024. Tullow Ghana Limited, Kosmos Energy Ltd, and Petro SA Ghana Ltd have jointly invested over $1 billion in the JSE project, which brought its first production well online last year, followed by two additional wells and a water injector.
According to Tullow Oil, these infrastructure investments have unlocked previously undeveloped reserves, resulting in higher production and increased revenue. PIAC’s report highlighted that Corporate Income Tax (CIT) from the oil sector nearly doubled, increasing by 115.5% from $166.51 million in the first half of 2023 to $358.8 million in 2024, strengthening Ghana’s revenue base. Carried Participating Interest (CAPI) revenue also grew by 33% year-on-year to $385.2 million, while royalties rose 10% from $81 million to $89.1 million.
Not all revenue sources saw growth, however. Surface rental fees dropped by 33% from $659,118.48 in 2023 to $439,011.08 this year. Despite this, interest on the Petroleum Holding Fund (PHF) surged by 160%, from $2.8 million to $7.2 million.
PIAC’s report highlights the structure of Ghana’s oil revenue, with CAPI accounting for 45.8%, CIT at 42.7%, and royalties at 10.6%. Other income streams, including surface rental fees and PHF interest, make up less than 1% of total revenue.
The report reflects a promising outlook for Ghana’s oil sector, as the JSE project continues to contribute to national revenue and support economic growth amid global energy market fluctuations.
