The launch of the Jubilee South East (JSE) project has triggered a significant turnaround for Ghana’s energy sector, reversing previous production declines with a 10.7 percent increase in crude oil output.
According to the Public Interest and Accountability Committee (PIAC) 2024 semi-annual report, the country’s petroleum receipts surged by 55.6%, reaching a record $840.8 million in the first half of 2024. This growth was driven by a rise in total production to 24.86 million barrels, up from 22.45 million barrels during the same period in the previous year.
The financial gains were bolstered by a dramatic 115.5% spike in Corporate Income Tax (CIT), which climbed to $358.8 million. Major industry players, including Tullow Ghana, Kosmos Energy, and Petro SA, contributed to this revenue stream.
While Carried Participating Interest (CAPI) remained the largest single contributor to the Petroleum Holding Fund at 45.8%, interest earned on the fund itself also saw a substantial rise of 160.2%, reaching $7.2 million due to higher global interest rates and larger fund balances.
The JSE project represents a major technical milestone, involving over $1 billion in investment over the past four years by the joint venture partners. This capital was used to drill new production wells and a water injector, successfully unlocking previously undeveloped reserves.
While royalties and CIT showed strong growth, surface rental fees experienced a 33 percent decline, though they continue to represent a very small fraction of the total revenue. These developments underscore the critical role of the Jubilee field in maintaining Ghana’s fiscal stability and energy security.
