The Minister for Energy and Green Transition, Dr John Abdulai Jinapor, has identified declining crude oil production and the gradual depletion of petroleum reserves as the most pressing immediate challenges facing Ghana’s upstream oil and gas industry.
Dr Jinapor acknowledged that Ghana’s petroleum reserves remained above the levels targeted by government, but cautioned that the continuing decline in production was increasingly concerning and demanded urgent intervention.
He explained that Ghana needed to ensure that newly discovered petroleum resources and emerging field developments progressively replaced the volumes of crude being extracted, thereby preventing a further deterioration in the country’s production outlook.
According to the Minister, government would intensify collaboration with the Ghana National Petroleum Corporation, the Petroleum Commission and private sector operators to accelerate field development, appraisal activities and exploration programmes.
He said efforts would also be directed towards reducing delays in regulatory approvals, resolving infrastructure constraints and creating a more stable and predictable environment capable of attracting sustained investment into the upstream petroleum sector.
“We will therefore work with GNPC, the Petroleum Commission and industry operators to accelerate field development, appraisal and exploration, improve the pace of approvals, address infrastructure bottlenecks and create a more predictable investment environment,” Dr Jinapor said.
Government Intensifies Reserves Replacement Strategy
Dr Jinapor said Ghana must adopt a more deliberate and comprehensive approach to petroleum exploration and upstream investment if the country is to strengthen its reserves replacement capacity and preserve the long term viability of the industry.
He described a number of projects being advanced by the Ghana National Petroleum Corporation as critical components of the country’s strategy to replenish its petroleum resource base and sustain future production.
The Minister specifically identified Pecan, Eban Akoma, Afina, Pecan North, Almond and Beech among the projects that could play an important role in revitalising Ghana’s upstream petroleum prospects.
He also highlighted the Eban Akoma Plan of Development, the amended TEN Plan of Development and opportunities within existing producing areas as strategically significant initiatives that could contribute to restoring production growth.
Dr Jinapor said government would introduce policies designed to facilitate the commercial development of these resources while ensuring that Ghana’s national interests remained adequately protected.
Government Turns Attention to Marginal and Frontier Resources
The Energy Minister further advocated innovative strategies for developing marginal and stranded petroleum resources that may not be commercially attractive under conventional development models.
He proposed greater utilisation of production hubs and shared infrastructure as possible approaches for reducing development costs and enabling smaller discoveries to be brought into production.
Dr Jinapor also encouraged technically robust exploration of frontier areas, including the Voltaian Basin, as part of broader efforts to expand Ghana’s petroleum resource base and identify new opportunities for future production.
“Our objective is exploration capable of generating commercially viable reserves and sustainable production,” he said.
The Minister explained that government’s strategy would therefore extend beyond simply increasing exploration activity. The broader objective, he said, was to ensure that discoveries resulting from exploration could ultimately be developed on commercially viable terms and converted into sustainable production.
Such an approach, he maintained, would help Ghana strengthen its reserves replacement position, protect the future of the upstream petroleum industry and reduce the risks associated with continued declines in crude oil output.
