Oil output rises after years of decline

Ghana's crude oil production has risen from approximately 90,000 barrels per day to 126,000 barrels per day, according to the Minister of Energy and Green Transition, Dr John Abdulai Jinapor. This substantial increase represents a significant turnaround from the consistent decline in petroleum production that occurred after the sector's peak in 2019.

Dr Jinapor expressed his satisfaction with the rise, noting that production had become economically unfeasible at the previous levels. He was speaking at the launch of the 15th anniversary celebrations of the Petroleum Commission (PC) in Accra.

Dr Jinapor highlighted that the government had reached crucial framework agreements with key industry partners, aimed at maintaining investment and boosting production. These agreements included a $2 billion deal with the Jubilee partners and a $1.5 billion commitment with the Sankofa partners. Furthermore, the Minister mentioned that the country was anticipated to sign five new petroleum agreements by the end of the year.

The Minister also announced that following the reviving investor confidence in the upstream sector, the government was conducting a thorough review of Ghana's upstream petroleum policy, legislative, and regulatory framework to enhance the country's competitiveness in attracting major international oil companies. However, the Minister emphasized that this review would be tailored to Ghana's national circumstances and aimed at ensuring a fair return to the state, while simultaneously strengthening local participation and capability.

Dr Jinapor praised the Petroleum Commission for its substantial contributions over the past 15 years in regulating the sector, monitoring petroleum operations, managing petroleum data, overseeing field development and production, and promoting regulatory compliance. He assured the Commission of the Ministry's commitment to providing the necessary support to enable the Commission to effectively carry out its mandate.

Ms Emeafa Hardcastle, the Chief Executive Officer of the National Petroleum Commission, revealed that over the past 15 years, the Commission had overseen the award of $4.9 billion worth of contracts to indigenous Ghanaian companies, accounting for 22% of all contracts. Additionally, $7.9 billion worth of contracts had been granted to joint venture companies involving Ghanaian firms, representing 35% of total contracts.

Ms Hardcastle assured that the Commission would continue to pursue its objective of becoming a world-class regulator, positioning Ghana as an upstream petroleum hub.