New oil wells boost Ghana’s petroleum revenue to record level

The commencement of new oil wells under the Jubilee South East project has significantly boosted Ghana’s crude oil production.

This has led to a 10.7 per cent increase in output and a record high for the country’s petroleum receipts.

According to the 2024 semi-annual report by the Public Interest and Accountability Committee (PIAC), the total petroleum receipts for the first half of 2024 rose by 55.6%, reaching $840.8 million, compared to $540.5 million in the same period of 2023.

This surge in revenue is attributed to a significant rise in crude oil production, which jumped from 22.45 million barrels in the first half of 2023 to 24.86 million barrels in the first half of 2024.

The report also highlighted a dramatic 115.5% increase in Corporate Income Tax (CIT), which grew from $166.51 million in the first half of 2023 to $358.8 million in 2024, further boosting the country’s petroleum revenue.

Petroleum companies, including Tullow Ghana Limited, Kosmos Energy Ltd, and Petro SA Ghana Ltd, have contributed significantly to the rise in oil revenue.

Carried Participating Interest (CAPI) saw a substantial increase of 33.03 per cent, rising from $289.5 million in the first half of 2023 to $385.2 million in the same period of 2024.

While royalty payments grew by 10 per cent from $81 million in 2023 to $89.1 million in 2024, surface rental fees dropped by 33 per cent, falling from $659,118.48 in 2023 to $439,011.08 in 2024.

Additionally, interest on the Petroleum Holding Fund (PHF) surged by 160.2 per cent, jumping from $2.8 million in 2023 to $7.2 million in 2024.

The report also recorded other income amounting to $67,000 for the period.

“For the period under consideration, revenues from CAPI contributed the highest share of 45.8 per cent followed by CIT (42.7 per cent) and Royalties accounted for 10.6 per cent.

“Revenues from Surface Rental, interest on the PHF, and late payment interest constituted less than one per cent of the total revenue,” the report indicated.

In July of the previous year, a joint venture comprising Tullow Oil, Kosmos Energy, the Ghana National Petroleum Corporation (GNPC), Petro SA, and the then Jubilee Oil Holdings (now GNPC Explorco) successfully launched the Jubilee South East (JSE) Project offshore Ghana.

The project’s milestone began with the start-up of its first production well, followed by two additional production wells and a water injector, which were all brought upstream by the end of last year.

Tullow reported that the joint venture partners have invested over $1 billion over the past four years, drilling wells and installing critical infrastructure needed to unlock and bring previously undeveloped reserves into production.

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