Ghana’s Oil Production Rises 10.7% in H1 After Five-Year Decline
TLDR
- Ghana's crude oil production surged by 10.7% in the first half of 2024, driven by the Jubilee South East project.
- The country's oil revenues experienced a remarkable 56% increase, reaching $840.8 million by June 2024.
- Ghana plans to enhance production by selling exploration rights, with key operators like Eni, Tullow, and Cosmos Energie actively involved in exploring the oil potential.
Ghana’s crude oil production rose by 10.7% in the first half of 2024, marking a reversal after five years of decline. This growth was primarily driven by the Jubilee South East (JSE) project, part of the Jubilee oil field, which began operations in late 2023. In total, Ghana produced 24.86 million barrels in the first six months of 2024, revitalizing its oil sector after a prolonged downturn.
The boost in production was matched by a 56% surge in oil revenues, reaching $840.8 million by June 2024, contributing about 7% to government revenue. The sector, however, still faces challenges, including regulatory requirements that mandate oil companies to allocate a 12% stake in projects to the state, which can deter investors.
Looking ahead, Ghana aims to increase the sale of exploration rights to further bolster production. Key operators in the sector, including Eni, Tullow, Cosmos Energie, and PetroSA, are actively exploring Ghana’s oil potential to support long-term growth.
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Key Takeaways
Ghana’s increased oil production and revenue highlight a positive shift in the country’s energy sector, crucial for economic stability. The activation of the JSE project marks a turning point, yet investor hesitancy due to regulatory requirements and operational challenges persists. As Ghana seeks to maximize its resource potential, the government’s efforts to sell exploration rights may be instrumental in maintaining growth and securing additional investments in its oil sector.
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