Ghana’s Crude Oil Production Sees Positive Surge in First Half of 2024

Ghana’s crude oil sector has achieved a significant turnaround in the first half of 2024, with production and revenues surpassing the figures recorded during the same period last year. The country’s crude oil revenue saw a remarkable 55.6 percent increase, bolstered by a more than 10 percent rise in production.

The semi-annual report from the Public Interest and Accountability Committee (PIAC) attributes this positive trend to the new Jubilee South East well coming on stream. Financially, Ghana received $840.7 million from oil production in the first half of 2024, compared to $540 million during the same period in 2023.

PIAC Chairman, Constantine Kudzedzi, highlighted that this is the highest half-year revenue since the beginning of oil production in Ghana. “Now we are dealing with half year 2024, you will see that it is slightly higher than last year, so the conclusion there is that, in terms of 1st January 2024 to 30th June 2024, production of crude oil has gone up slightly as against first half of 2023 which is January to June 2023. So there is a slight improvement and we hope that it continues throughout the year. If that continues, then there is a likelihood that crude oil production will be better this year as against 2023,” he stated.

The 2024 Semi-Annual Report, covering January to June, provides a comprehensive overview of petroleum revenue management. It includes data on production, liftings, total revenues due to the state, government allocations, the Annual Budget Funding Amount (ABFA) utilisation, and the management of the Ghana Petroleum Funds (Ghana Stabilisation Fund and the Ghana Heritage Fund). Additionally, the report evaluates the performance of institutions responsible for implementing the Petroleum Revenue Management Act (PRMA), offering findings and recommendations aimed at shaping policy and promoting the prudent management of petroleum revenues in Ghana.

This notable increase in production and revenue underscores Ghana’s potential for continued growth in the oil sector, provided the current upward trend is maintained. The report’s insights are expected to influence future policy decisions and advocacy efforts for better petroleum revenue management in the country.