The Jubilee South East project has catalyzed a remarkable increase in crude oil production in Ghana, marking its significance in the country’s oil industry. The Public Interest and Accountability Committee (PIAC) noted in its 2024 semi-annual report that Ghana’s crude oil output experienced a 10.7 percent surge, reaching a total of 24.86 million barrels in the first half of 2024 compared to 22.45 million barrels in the same period the previous year. This spike in production is further reflected in the record high petroleum receipts, which saw an increase of 55.6 percent, climbing to $840.8 million in the first half of 2024. This upward trajectory not only highlights the potential of Ghana’s oil sector but also showcases the ingenuity and investment of the companies involved.
The increase in petroleum revenues can largely be attributed to the successful efforts of key players in the industry, namely Tullow Ghana Limited, Kosmos Energy Ltd, and Petro SA Ghana Ltd. Their contribution has significantly influenced the financial landscape, with Corporate Income Tax (CIT) witnessing a dramatic rise of 115.5 percent, reaching $358.8 million in the first half of 2024 from $166.51 million in 2023. The joint venture partners behind the Jubilee South East project reported investments exceeding $1 billion in the last four years, indicative of a robust commitment to increasing Ghana’s oil production.
The report also detailed various forms of revenue generation in the petroleum sector, shedding light on the contributions from different streams. Carried Participating Interest (CAPI) experienced a notable increase of 33.03 percent, rising from $289.5 million in 2023 to $385.2 million in the same timeframe of 2024. Meanwhile, royalty payments increased modestly by 10 percent, although surface rental fees took a notable downturn, decreasing by 33 percent from $659,118.48 to $439,011.08. Meanwhile, interest accrued on the Petroleum Holding Fund (PHF) exhibited a substantial increase, soaring by 160.2 percent to reach $7.2 million, reinforcing the overall growth in petroleum revenues.
The revenue breakdown detailed in the report indicates that CAPI constituted the largest share of total income at 45.8 percent, followed closely by CIT at 42.7 percent. Royalties made up 10.6 percent of the total, while contributions from surface rental, interest on the PHF, and late payment interest represented less than one percent of overall revenues. Such figures underscores the central role that CAPI and CIT play in the financial viability of Ghana’s petroleum sector, reinforcing the importance of continued investment and production in these streams.
The historical context of the Jubilee South East project adds depth to this discussion, emphasizing the collective efforts of the various stakeholders involved. The joint venture that encompasses Tullow Oil, Kosmos Energy, the Ghana National Petroleum Corporation (GNPC), Petro SA, and the then Jubilee Oil Holdings (now GNPC Explorco) successfully initiated the project in July of the previous year. The successful drilling of multiple production wells and essential infrastructure installation has unlocked previously undeveloped reserves, setting the stage for sustained production growth and revenue generation.
In conclusion, the Jubilee South East project exemplifies the potential for growth within Ghana’s oil sector, driven by significant investments and productive collaborations among industry stakeholders. With increasing crude oil production and substantial revenue gains, Ghana is positioning itself as a noteworthy player in the global oil landscape. As the industry continues to evolve, the focus will likely remain on enhancing production capabilities, refining revenue streams, and fostering a sustainable oil economy that benefits both stakeholders and the national interest alike. The future of Ghana’s petroleum industry thus appears promising, bolstered by a strategic approach to resource development and economic growth.
