Ghana’s domestic oil production increases by 10.7% in the first half of 2024, reaching nearly 25 million barrels.
This growth, if maintained, could end a four-year decline in production, according to the Public Interest and Accountability Committee (PIAC).
This rise in production reverses last year’s 13.2% drop and is mainly due to the newly launched Jubilee South East (JSE) project. The project has also boosted oil revenue, bringing in $840.8 million in early 2024—a 55.6% increase from $540.5 million in the same period of 2023.
PIAC’s chairman, Constantine Kudzedzi, said this success shows the value of new projects in reviving Ghana’s oil industry. He stressed that more government efforts to attract investment could further strengthen growth.
Oil production in Ghana had steadily dropped from 71.4 million barrels in 2019 to just 48.3 million barrels in 2023, raising concerns. To address this, PIAC and industry stakeholders held a workshop, where they called for reforms to make the sector more appealing to investors.
PIAC’s 2024 mid-year report highlighted several issues, including unpaid surface rental fees totaling $1.2 million. No payments were made towards these debts, which PIAC says hurts Ghana’s economic goals. PIAC also noted that the Ghana Stabilisation Fund cap remains at $100 million, far below the $530.1 million recommended by law. PIAC urged parliament to raise the cap.
Additionally, the Ghana National Petroleum Corporation (GNPC) still lacks a required reserve fund, which PIAC says is essential for covering long-term costs, especially since government funding for GNPC may end by 2026.
PIAC also raised concerns about the continued use of a discounted industrial energy tariff, which was supposed to be suspended. They recommended that the Ghana Revenue Authority take action to collect overdue surface rental fees and ensure on-time payments going forward.
To support industrial growth, PIAC called for the Annual Budget Funding Amount (ABFA) to be consistently allocated to priority industrial projects. They also advised parliament to remove any cap on the Ghana Stabilisation Fund that doesn’t meet legal standards and urged the Finance Minister to follow petroleum revenue regulations.