{
  "id": 8244882,
  "title": "Explainer: Can Ghana’s new oil deals reverse years of declining production?",
  "url": "https://urgent.news/2026/09/18/explainer-can-ghanas-new-oil-deals-reverse-years-of-declining",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-18T12:14:51.000Z",
  "source": {
    "name": "Joy Business",
    "slug": "joy-business",
    "url": "https://www.myjoyonline.com/explainer-can-ghanas-new-oil-deals-reverse-years-of-declining-production/"
  },
  "original_language": "en",
  "account": "Ghana's oil industry has seen significant growth since the discovery of the Jubilee Field in 2010, with production peaking at 71.44 million barrels in 2019. However, production has since declined by nearly 48% to 37.3 million barrels in 2025, posing a major challenge to the country's upstream petroleum sector. This decline has occurred at a time when the country is seeking new investment to reverse the trend.\n\nIn recent months, Ghana has signed new Memoranda of Understanding (MoUs) with international oil companies, including Eni, Vitol, Shell, and Chevron. These agreements cover various blocks within the Tano Basin and the South Deepwater Tano-Cape Three Points area. The aim is to open up new acreage, increase exploration, and develop more petroleum resources.\n\nHowever, the question remains: can these new deals reverse the years of declining production? The success of previous agreements in Ghana has been inconsistent. For instance, the Deepwater Cape Three Points West block operated by Eco Atlantic has faced repeated delays and extensions in drilling schedules, with the mandatory well still not drilled as of 2024. This highlights the gap between agreement signing and actual exploration activity.\n\nGhana currently has 14 Petroleum Agreements held by 12 operators, with only three producing fields contributing to the country's oil output: Jubilee, TEN, and Sankofa-Gye Nyame. Africa Centre for Energy Policy (ACEP) notes that there has been limited exploration and development activity since these agreements, indicating a significant gap between having an agreement and producing actual oil.\n\nSigning a petroleum agreement does not immediately lead to oil production. Companies must conduct geological and geophysical studies, drill exploration wells, and conduct appraisal studies to determine if the discovery is commercially viable. Only after this process can a field move into production, requiring significant capital investment and regulatory approvals.\n\nTherefore, while the new MoUs with international oil companies represent steps towards investment and exploration, they do not guarantee an immediate increase in crude output. Ghana will need to continue investing in existing fields, improving the regulatory and fiscal framework, and expanding exploration in new basins to reverse the recent decline in petroleum production.",
  "summary": "For years, Ghana’s oil industry was seen as one of the country’s biggest economic success stories. Commercial production began in 2010 after the discovery of the Jubilee Field, and output climbed rapidly as more fields came on stream.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "MyJoyOnline Ghana",
        "title": "Explainer: Can Ghana’s new oil deals reverse years of declining production?",
        "url": "https://urgent.news/2026/09/18/explainer-can-ghanas-new-oil-deals-reverse-years-of-declining-8245176",
        "published": "2026-09-18T12:14:51.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}