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

Ghana's President John Dramani Mahama announced $3.5 billion in commitments from international oil partners to revitalize the country's petroleum industry. The investments, totaling $2 billion from the Jubilee partners and $1.5 billion from the Offshore Cape Three Points partners, will fund new wells, subsea infrastructure, and expanded production facilities.

Crude oil production has rebounded to over 120,000 barrels per day after reaching a low of 88,000 barrels per day, a decline attributed to external pressures, poor governance, and regulatory inconsistencies. Mahama emphasized the administration's focus on settling upstream disputes and restoring investor confidence, which has led to renewed engagements with industry players.

In addition to the investment commitments, Ghana anticipates significant savings from revised gas supply arrangements, including a 18% reduction in Jubilee gas prices resulting in approximately $300 million in savings for the country and a 23% reduction in gas prices with ENI, projected to save about $3.5 billion over the field's remaining life.

The government is also exploring new opportunities in Ghana's western and eastern sedimentary basins, including the Accra-Keta Basin, and has removed a major obstacle to the development of the Pecan Field. Proposed amendments to the Petroleum Exploration and Production Act aim to improve incentives and attract investment amidst shifting global energy dynamics.

While welcoming foreign investment, Mahama stressed the importance of translating petroleum development benefits into jobs and opportunities for Ghanaian businesses and workers.