By Isaac Hughes | Western Region
Ghana’s oil sector has recorded a sharp decline in output, with production falling by 32 percent — from 71.4 million barrels in 2019 to 48.2 million barrels in 2024. The downturn, experts warn, poses serious challenges to government revenue and foreign exchange earnings, both of which rely heavily on the petroleum sector.
The issue dominated discussions at the 2025 Local Content Conference and Exhibition (LCCE), which opened in Takoradi under the theme “Revitalizing Ghana’s Petroleum Exploration and Production Sector: Driving Innovation and Redefining Local Content for a Competitive Energy Economy.”
Causes of the Decline
Addressing participants, Dr. John Abu Jinapor, Minister for Energy and Green Transition, outlined several factors behind the slump. These include regulatory inefficiencies, weak policy support, prolonged licensing processes, ongoing legal disputes over field unitization, and frequent changes in fiscal policy — all of which have discouraged investment and delayed exploration projects.
Dr. Jinapor cautioned that without bold and coordinated interventions, Ghana risks losing its competitiveness in the global petroleum market.
Government Response
To address these challenges, the Minister announced a series of reforms designed to revitalize the upstream petroleum industry. These include:
Ending Inactive Agreements: Contractors holding oil blocks must meet minimum work obligations or risk losing their licenses.
Legislative Review Committee: A new body will review existing legal and regulatory frameworks to recommend reforms that enhance investment attractiveness and optimize production.
Flexible Fiscal Strategy: The Ministry will introduce investor-friendly fiscal terms to encourage exploration in frontier and deep-water areas while safeguarding national interests.
“We are transforming challenges into opportunities to position Ghana as a preferred destination for strategic upstream investments,” Dr. Jinapor said.
Promoting Local Participation
The Minister also emphasized the need to increase the participation of Ghanaian companies in the oil and gas value chain, noting that petroleum resources must serve as a foundation for broader economic transformation and industrial growth.
Supporting this vision, Madam Victoria Emeafa Hardcastle, Acting CEO of the Petroleum Commission, said the Commission is implementing a “revitalize, innovate, and redefine” strategy to enhance Ghana’s appeal for petroleum investments.
Looking Ahead
The three-day conference is expected to generate actionable policy recommendations to strengthen Ghana’s oil and gas sector and expand opportunities for local businesses.
