Ghana has been firming its efforts to reinject growth in its petroleum industry following the long spell of slowing crude oil production, heightening concerns about the sustainability of the country’s petroleum revenue generation and investment prospects.
The West African country’s crude oil output, which peaked at approximately 71 million barrels annually, has dropped to about 37 million barrels, prompting the government to pursue fresh investments and reforms to strengthen the sector.
The Minister for Energy and Green Transition, Dr John Abdulai Jinapor, says government is targeting at least six new petroleum agreements with international oil companies by the first quarter of 2027 as part of a broader strategy to reverse the trend.
Speaking at the Petroleum Commission’s 2026 Local Content Conference and Exhibition in Takoradi on Tuesday , November 10, Dr Jinapor disclosed that negotiations with major international industry players, including Eni, Vitol, Shell, Chevron, Petrobras and ExxonMobil, were progressing.
He said the engagements were intended to position Ghana as a competitive destination for global petroleum investments at a time when countries are competing for limited exploration capital.
The Minister noted that the decline in oil production since 2020 had affected economic activities, particularly in Takoradi, where several businesses depend on the operations and spending of companies within the petroleum industry.
He, however, disclosed that Ghana was beginning to record some improvement, with daily crude oil production increasing from approximately 90,000 barrels to 122,000 barrels.
Dr Jinapor said government was determined to move beyond stabilising production and pursue sustained growth through new discoveries, increased exploration and the development of existing oil fields.
Among the projects being prioritised are the Ebano-Afoma discovery, the Pecan field and the deepwater Keta prospects.
Government is also supporting the Ghana National Petroleum Corporation’s proposed development of the Haimenber project and efforts to bring marginal oil fields into commercial production.
Beyond attracting new investors, the Energy Minister said government was reviewing the Petroleum Exploration and Production Act, 2016 (Act 919), to create a more flexible and competitive regulatory environment for international oil companies.
He explained that Ghana must offer attractive investment conditions while protecting its national interests if it wants to secure the capital needed to expand petroleum operations.
The Minister also highlighted the importance of local participation, revealing that Ghanaians currently make up approximately 90 per cent of the workforce in the upstream petroleum industry.
He added that the value of local content had increased from about 227 million dollars in 2024 to 450 million dollars, describing the growth as an indication of the opportunities available to Ghanaian businesses.
Dr Jinapor stressed that the expected petroleum agreements must translate into actual investments, employment opportunities, technology transfer and the development of local expertise.
On natural gas, he described domestic production as essential to Ghana’s energy security and industrial development.
He disclosed that domestic gas production had increased to approximately 400 million standard cubic feet per day, helping the country reduce its annual imports of light crude oil from six cargoes to two.
Government, he said, was working towards eliminating the imports entirely by 2027, a move expected to save the country approximately 500 million dollars annually.
He also announced plans to begin construction of a third gas processing plant to strengthen domestic gas supply and support electricity generation.
Additionally, the GNPC and ExploCore have completed arrangements for a drilling contract to undertake exploration activities in the Voltaian Basin, with drilling expected to commence in the coming weeks and months.
The project is expected to expand petroleum exploration beyond Ghana’s established offshore fields and establish whether the basin holds commercially viable oil and gas resources.
Dr Jinapor maintained that the country’s petroleum sector must deliver more than revenue from crude oil exports, insisting that investments should create lasting economic opportunities for Ghanaians.
He said government’s broader objective was to build a resilient petroleum industry capable of attracting international capital while strengthening indigenous businesses and supporting national development.
The Minister urged industry stakeholders to work together to restore investor confidence and ensure that Ghana’s petroleum resources contribute meaningfully to the country’s economic growth.
Government believes the proposed agreements, alongside ongoing regulatory reforms and exploration projects, could mark an important step towards rebuilding the country’s oil and gas industry.
Credit: gbconline