New oil wells bring Ghana's petroleum earnings to all-time highs.

The launch of new oil wells under Ghana’s Jubilee South East project has significantly increased the country’s crude oil production, leading to a 10.7 percent boost in output and a record rise in petroleum revenue.

According to the 2024 semi-annual report by the Public Interest and Accountability Committee (PIAC), Ghana’s petroleum receipts reached $840.8 million in the first half of 2024, marking a 55.6 percent increase from $540.5 million in the same period in 2023. This increase is largely attributed to a rise in crude oil production, which grew from 22.45 million barrels in the first half of 2023 to 24.86 million barrels in the same period of 2024.

Corporate Income Tax (CIT) also saw a notable increase of 115.5 percent, jumping from $166.51 million in 2023 to $358.8 million in 2024, further enhancing the country’s petroleum revenue.

Major petroleum companies, including Tullow Ghana Limited, Kosmos Energy Ltd, and Petro SA Ghana Ltd, played key roles in driving this increase in oil revenue.

The Carried Participating Interest (CAPI) also recorded a significant rise of 33.03 percent, growing from $289.5 million in the first half of 2023 to $385.2 million in 2024. Royalty payments increased by 10 percent from $81 million to $89.1 million, while surface rental fees dropped by 33 percent, from $659,118.48 to $439,011.08.

Interest earned on the Petroleum Holding Fund (PHF) saw a substantial rise of 160.2 percent, from $2.8 million in 2023 to $7.2 million in 2024. Other income for the period amounted to $67,000.

The report indicated that for this period, revenues from CAPI accounted for the largest portion at 45.8 percent, followed by CIT at 42.7 percent, and royalties at 10.6 percent. Surface rental, PHF interest, and late payment interest collectively contributed less than one percent to the total revenue.

In July of the previous year, Tullow Oil, Kosmos Energy, the Ghana National Petroleum Corporation (GNPC), Petro SA, and the then Jubilee Oil Holdings (now GNPC Explorco) initiated the Jubilee South East (JSE) Project off the coast of Ghana. The project kicked off with its first production well, soon followed by two additional wells and a water injector, all brought into production by the end of last year.

Over the past four years, the joint venture partners have invested more than $1 billion to drill wells and establish vital infrastructure, bringing previously untapped reserves into production.