President Mahama secures $3.5BN oil sector investment commitment to revive Ghana’s petroleum industry

Ghana's President John Dramani Mahama announced a $3.5 billion investment commitment from international oil partners to revitalize the country's petroleum industry. The commitments, including $2 billion from the Jubilee partners and $1.5 billion from the Offshore Cape Three Points partners, will finance new wells, subsea infrastructure, and expansion of production facilities.

Crude oil production has recovered to over 120,000 barrels per day, up from 88,000 barrels per day. The decline was attributed to external pressures, poor governance, and regulatory inconsistencies. President Mahama emphasized resolving upstream disputes and restoring investor confidence as priorities. Ghana is also exploring new opportunities in the western and eastern sedimentary basins, with several Memorandums of Understanding signed with major oil companies.

The government has fully restored a $500 million World Bank guarantee and is on time with gas payments. President Mahama highlighted the expected savings from revised gas supply arrangements, with a 18% reduction in Jubilee gas prices generating around $300 million in savings for the country. He also stressed the importance of local content, aiming for increased opportunities for Ghanaian businesses and workers in the petroleum sector.