By Maxwell Akalaare Adombila

ACCRA, Nov 7 (Reuters) - Ghana's crude oil output

increased by 10.7% year-on-year in the first six months of 2024,

reversing an annual production decline that began five years

prior, the country's public interest and accountability

committee (PIAC) reported.

Crude oil production in Ghana, Africa's leading gold

producer, began in 2010, but output fell to a five-year low in

2023 due to production declines in existing fields, effectively

erasing gains from new wells.

PIAC, a state body tasked with monitoring the sector, said

oil production climbed to 24.86 million barrels by June 2024,

contrasting with a 13.2% decline over the same period in 2023.

The increase was primarily driven by the Jubilee South East

(JSE) project, operated by Tullow Oil ( TUWLF ), which commenced

production in late 2023.

The JSE is a new find in the country's first oil field,

Jubilee where output had peaked.

"We are hopeful that the first-half output increment in 2024

will be sustained, thereby reversing the annual oil production

declines," Isaac Dwamena, coordinator of PIAC Secretariate, told

Reuters on Thursday.

The half year report from PIAC also indicated a surge in

petroleum revenue of around 56% year-on-year to $840.8 million

by June, propelled by the increased oil output.

Ghana relies on petroleum revenue for about 7% of government

income, according to PIAC.

Gas output also saw a 7.5% rise to 139.86 million standard

cubic feet by June.

Dwamena highlighted the challenges faced by Ghana's

petroleum sector, which include both natural and technical

issues.

Ghana's laws stipulate that petroleum companies must

allocate at least 12% of every project to the state as free and

carried interest, a requirement Dwamena noted can be costly for

investors.

"The state can take 15%, 20% carried interest based on

negotiations, and that has been a disincentive," he said.

To boost production, the West African country plans to sell

more exploration rights to prevent stranded fossil fuels and

generate revenue for its energy transition.

Current oil companies operating in Ghana include Eni

, Tullow, Kosmos, and PetroSA.