Ghana’s oil production saw a slight rise in the first half of 2024, reaching 24.85 million barrels. However, this falls far short of the 2019 peak of 34.3 million barrels, highlighting ongoing challenges in boosting output despite signs of recovery.
According to PIAC’s analysis of GNPC data as of June 2024, Ghana’s half-year production has fluctuated significantly over the years.
In 2016, production stood at 11.44 million barrels, rising sharply to 24.34 million barrels in 2017. This upward trend continued into 2018, with production increasing to 28.98 million barrels, before peaking at 34.3 million barrels in 2019. In 2020, production remained strong at 34.23 million barrels.
However, the decline began in 2021, with production dropping to 27.76 million barrels, followed by a further decrease to 25.86 million barrels in 2022 and 22.45 million barrels in 2023.
The slight rebound to 24.85 million barrels in H1 2024 offers some hope but remains far below the record highs of previous years.
PIAC, in its 2024 Semi-Annual Report, also observed that no new Petroleum Agreements (PAs) have been signed since 2018. Ghana currently has 14 active Petroleum Agreements, with most of its production coming from mature fields such as Jubilee, TEN, and Sankofa Gye Nyame.
“PIAC observes that no Petroleum Agreement was signed during the period under review, as has been the case since 2018. “
While these fields have contributed significantly to Ghana’s oil success, their declining output highlights the importance of exploring new opportunities to sustain production levels.
Exploration efforts in areas such as the Deepwater Tano/Cape Three Points field, which remains in the pre-development phase, and other contract areas still under exploration, have yet to deliver results that could offset the decline in existing fields.
The report also indicated that the increase in H1 2024 production was primarily driven by a higher output from the Jubilee Field. Crude oil production on the Jubilee Field increased by 25.1 percent year-on-year, showcasing significant operational improvements.
In contrast, production on the TEN and Sankofa Gye Nyame (SGN) Fields declined by 4.8 percent and 12.4 percent, respectively. These figures highlight the growing reliance on the Jubilee Field to sustain Ghana’s oil production levels, as output from other key fields continues to decline.
