As oil production declines Ghana records second-highest annual petroleum receipts on favourable market prices

Ghana’s petroleum revenues for 2024 rose by 27.8 per cent to $1,357,793,869.40 from $1,062,323,419.12 in 2023. 

The increase, driven by higher global oil prices, marks the second-highest annual petroleum receipts, with 2022 remaining the highest at $1.42 billion. 

Despite increased petroleum revenues, Ghana’s oil production continues to decline, falling from 71,439,585 barrels in 2019 to 48,240,010 barrels in 2024, according to the Public Interest Accountability Committee’s (PIAC) 2024 Annual Report on petroleum revenue management.

Since production began, Ghana has earned $11.21 billion from its three oil fields. 

Earnings in 2024 came from Carried and Participating Interest (CAPI), Corporate Income Tax (CIT), royalties, surface rentals, and income from the Petroleum Holding Fund (PHF). 

“The revenue derived from CAPI in 2024 constituted 44.5 percent ($603,538,337.92) of total petroleum revenues as compared to $470,673,746.05 in 2023. This represents about 28.2 percent increase in CAPI over that of 2023,” PIAC reported. 

CIT was the second-highest revenue stream in 2024 and recorded its highest value since crude oil production began. 

“The total CIT received from the three fields in 2024 stood at $502,873,263.60, representing a 37.7 percent increase from that of 2023 ($365,197,536.35),” the report stated. 

This increase was due to reduced development costs, additional revenue from gas production, and recovering losses that pushed some International Oil Companies (IOCs) into tax-paying positions. 

Royalties for 2024 amounted to $239,984,190.86, up 9.3 percent from $219,608,784.84 in 2023. 

“Royalty from the Jubilee Field contributed 55 percent of the total Royalties for the period, followed by SGN (29%) and TEN (16%),” PIAC noted. 

Surface rental payments declined by 33.5 percent, from $771,200.48 in 2023 to $512,711.08 in 2024. 

Interest on the PHF increased by 78.2 percent to $10,818,463.39 in 2024 from $6,072,151.40 in 2023. 

Other income from the PHF totaled $66,902.55, mainly from late payment interest by Germcorp Commodities Trading.

Source: GNA

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