Government is stepping up efforts to reverse declining oil production and increase domestic gas supply as it pushes new reforms in Ghana’s upstream petroleum sector.
Energy Minister John Abdulai Jinapor disclosed the plans after engaging the Ghana Upstream Petroleum Chamber to review developments in the sector and discuss government’s interventions since taking office.
He said restoring investor confidence and creating a more attractive investment environment remain central to the government’s approach.
Oil production decline a concern
Dr Jinapor said reversing the decline in oil production is “high on our agenda”, while increasing gas output has become equally important because of rising domestic demand, particularly from the power generation sector.
The government is pursuing policy, regulatory and infrastructure measures to support both objectives.
Among the key measures is an ongoing review of Ghana’s upstream legal and regulatory framework. According to the Minister, the review is intended partly to make the sector more competitive and improve the conditions for investors.
The government also wants Ghana to capture more value from its petroleum resources instead of relying heavily on exporting crude and importing energy products.
Focus shifts to domestic gas
Expanding gas supply for local consumption will be critical to that strategy.
Dr Jinapor said increased domestic gas availability, particularly for electricity generation, would strengthen energy security and reduce Ghana’s dependence on imported natural gas and other energy products.
The Minister said the government’s broader objective is to “maximise the value of the oil and gas produced in Ghana by processing and utilising more of our resources domestically.”
The engagement with the Chamber also allowed industry representatives to raise concerns about the direction of the sector.
Dr Jinapor described the discussions as constructive and said government values continued engagement with industry players.
“A strong partnership between Government and industry is essential to building a more competitive, predictable and sustainable petroleum sector,” he said.
The government’s challenge now is to turn the planned reforms into higher production, stronger investment and a more reliable domestic gas supply without losing sight of the long term sustainability of Ghana’s petroleum industry.
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