News Guide Africa

Tag: Oil production

  • Benchmark oil production pegged at 127k barrels/day at price of US$74.70/barrel

    Ghana’s offshore oil production is projected to average 127,000 barrels per day in 2025, contributing significantly to national revenue.

     

     

    Adnan Adams Mohammed

     

     

    Ghana’s benchmark crude oil production for this year has been projected at an average of 126,994.49 barrels of crude oil per day (approximately 127,000) translating to an annual output of 46.35 million barrels.

     

    These were arrived at based on a three-year simple average of each producing field’s actual and projected outputs in line with the Petroleum Revenue Management Act (PRMA) as announced by the finance minister in Parliament, last week, in accordance with the First Schedule (Section 17) of the PRMA (Act 815) as amended.

     

    The Benchmark price for 2025 has been calculated as a seven-year moving average of prices at US$74.70 per barrel for crude oil and the Gas price is projected at US$7.11 per MMBtu. These are expected to yield projected petroleum receipts of US$1,011.36 million for 2025

     

    “Mr Speaker, the Benchmark Revenue for 2025, which is the total petroleum receipts, net of the programmed receipts for GNPC is estimated at US$818.69 million”, Dr Cassiel Ato Forson noted when presenting the 2025 budget statement.

     

    “Of this amount, a total of US$573.08 million representing 70% of the Benchmark Revenue has been allocated to the Annual Budget Funding Amount (ABFA), while the Ghana Petroleum Funds (GPFs) are programmed to receive US$245.61million.”

     

    The GPFs receipts are would be distributed between the Ghana Stabilization Fund

    (US$171.93 million) and Ghana Heritage Fund (US$73.68 million) in the ratio

    of 70% to 30% in line with the PRMA.

     

    The total receipt was calculated as per Ghana group share (liftings) of the total Benchmark crude oil output projection (46.35 million barrels) of 9.20 million barrels consisting of: royalty volume of 2.56 million barrels; and carried and participating interest volume of 6.64 million barrels, whilst, the Benchmark gas output, has been estimated at 118.14 trillion btu for 2025.

     

    In monetary value terms, Ghana’s share of liftings are made up of Royalties (US$191.52 million), Carried and Participating Interest (US$495.92 million), Corporate Income Tax (US$319.70 million) and Surface Rentals (US$4.22 million).

     

    Of the total receipts of US$1,011.36 million, US$192.67million has been programmed for the National Oil Company (GNPC) in respect of the equity financing cost (US$139.15 million) and share of the net Carried and Participating Interest (US$53.52 million)

     

    Meanwhile, in the medium-term, total petroleum receipts are projected at US$1,159.66 million, US$1,209.33 million, and US$1,232.25 million, for, 2026, 2027, and 2028, respectively. This is based on Benchmark price per barrel of US$78.98, US$79.21 and US$75.50 for 2026, 2027, and 2028, respectively.

     

    The Government maintained the cap on the Ghana Stabilization Fund at US$100 million, in line with Section 23(3) of the PRMA.

     

  • Ghana’s Crude Oil and Gas Production Increases in H1 2024: Jubilee Field Leads Growth

    Oil and gas  production

    Stephanie Nkrumah

    Ghana’s oil and gas industry has shown significant growth in the first half of 2024, with total crude oil production rising by 10.7% compared to the same period last year. The country’s three offshore oil fields—Jubilee, TEN, and SGN—produced a total of 24,857,477.52 barrels (bbls) of crude oil between January and June 2024, up from 22,452,078.81 barrels in H1 2023.

     

    The Jubilee Field, which continues to be Ghana’s largest oil producer, saw a remarkable 25.1% year-on-year increase in production. In H1 2024, it produced 16,405,020 barrels, compared to 13,113,193 barrels in the first half of 2023. This surge is attributed to the successful ramping up of production from the J03-P and J69-P wells. However, June’s production dipped due to technical issues, including low-pressure gas compressor failures that affected operations.

    While Jubilee showed growth, the TEN and SGN fields faced declines in production. TEN’s output dropped by 4.8%, with 3,450,445 barrels produced in H1 2024, down from 3,625,995 barrels last year. SGN’s production decreased by 12.4%, from 5,712,891 barrels in H1 2023 to 5,002,012.52 barrels in H1 2024. The declines were primarily caused by operational challenges such as flow assurance issues and equipment failures.

    Ghana’s natural gas production saw a boost in the first half of 2024. Total raw gas production, including both associated and non-associated gas, reached 139,866.92 million standard cubic feet (MMSCF), up 7.5% from last year. Gas production from the Jubilee, TEN, and SGN fields increased by 19.6%, 2.7%, and 3.2% respectively.

    The Greater Jubilee Field accounted for a substantial share of this increase, with gas exports rising by 4.6% to 18,043.31 MMSCF in H1 2024. However, exports from the TEN Field saw a sharp decline of 78.3%, primarily due to operational challenges. Overall, gas exports from the Jubilee and TEN fields together saw a modest 2.3% increase, totaling 18,147.74 MMSCF.

    In terms of crude oil liftings, the Jubilee Partners completed 17 liftings in H1 2024, up from 14 liftings in H1 2023. The Ghana Group lifted a total of 2,861,942 barrels, a significant increase from the 1,902,136 barrels lifted last year. Other partners, including Tullow Ghana and Kosmos Energy, lifted 13,321,134 barrels.

    For the TEN Field, three liftings totaling 2,982,272 barrels were made, showing a slight increase over last year’s 2,941,836 barrels from the same number of liftings

    Despite the increase in gas production, flaring levels remained a concern. Total gas flaring across the three fields rose slightly from 15,483.91 MMSCF in H1 2023 to 16,069.40 MMSCF in H1 2024. However, the Environmental Protection Agency (EPA) confirmed that the levels of flaring remain within acceptable limits.

    With crude oil production reaching a cumulative total of 633.3 million barrels since 2010, Ghana’s oil and gas sector continues to play a crucial role in the country’s economic development. However, technical and operational challenges at fields like TEN and SGN highlight the need for ongoing investment in infrastructure and maintenance to ensure stable production moving forward.

    Citizens can expect to see more detailed reports on gas and oil production trends in the coming months, as the government and industry stakeholders work to optimize Ghana’s resource utilization and improve the local energy sector.

  • Third quarter oil production peaks at 633,300 barrels since 2010

    oil production

     

    Ghana’s cumulative crude oil production has reached 633,300 barrels since the country began extracting oil in 2010, according to the Public Interest and Accountability Committee (PIAC).

     

    This production total spans through July 2024 and represents output from the Jubilee Oil Field, Sankofa/Gye Nyame, and the TEN Fields.

     

    PIAC Coordinator Isaac Dwamena shared the latest production figures, showing variable growth over the years.

     

    Ghana initially produced 10.7 million barrels in 2011, rising to 18.9 million barrels by 2013.

     

    Production peaked in 2019 at 34.3 million barrels before beginning a decline to 22.5 million barrels in 2023.

     

    As of July 2024, Ghana had already produced 24.9 million barrels for the year.

     

    Oil revenues over this period totalled $10.69 billion, with earnings derived from taxes such as Carried and Participating Interest (CAPI), Surface Rentals, the Petroleum Holding Fund (PHF), Corporate Income Tax (CIT), and other income.

     

    In 2012, Ghana’s first full year of oil production, the country earned $327.2 million, climbing to $596.1 million in 2013.

     

    However, revenue dropped between 2014 and 2016, falling as low as $126.4 million.

     

    A gradual revenue recovery began in 2017, reaching $463.6 million in 2018.

     

    By 2020, annual earnings rose to $638.6 million, with 2022 marking a peak of $731.9 million.

     

    Despite a slight dip in 2023 to $540.5 million, Ghana experienced a notable revenue increase in the first half of 2024, recording $840.8 million—the highest half-year revenue since production began.