President Mahama announces ‘Nya Gyidie’ offshore oil discovery as crude production rises above 120,000 barrels per day

President John Dramani Mahama announced a new offshore oil discovery near the Jethro-1X well in Ghana's Deepwater Cape Three Points Contract Area. The discovery, made by Planet One Oil and Gas Limited, Tullow Upstream Limited, and the Ghana National Petroleum Corporation (GNPC), is the country's first successful test of a Cenomanian-Turonian carbonate play as the primary exploration target.

President Mahama highlighted this as an important milestone for Ghana's oil and gas industry, fulfilling an exploration commitment and demonstrating investors' confidence in the government's petroleum agenda. He emphasized the importance of increasing domestic refining and gas processing capacity to reduce dependence on imported fuel.

To ensure a reliable supply of natural gas, the government is constructing a second gas processing facility, expected to save Ghana about US$1 billion annually. Regarding local content, Mahama urged Ghanaian companies to build their capacity and meet industry standards, calling for support from banks and financial institutions. He also emphasized the need for universities and technical institutions to collaborate with industry players to ensure training programmes meet the sector's skills requirements.

Ghana has recorded over 30 offshore discoveries since 2007, with commercial production beginning in 2010. However, production peaked at 88,000 barrels per day in 2019, declining to around 50,000 barrels per day due to limited drilling activities and disputes. Since taking office, the Mahama administration has increased oil production to over 150,000 barrels per day through negotiations with industry partners.

The government is attracting investments from international oil companies, including Eni, Vitol, Shell, Chevron, and Petrobras, in Ghana's Western and Eastern sedimentary basins, with three memoranda of understanding signed. President Mahama reiterated the government's commitment to reviewing the Petroleum Exploration and Production Act to introduce better incentives and attract investment into the sector.