In a bid to revive Ghana’s struggling upstream petroleum sector, the Minister for Energy and Green Transition, John Abdulai Jinapor, has called for collaboration among stakeholders to restore investor confidence and enhance production. Speaking at a roundtable meeting with the Ghana Upstream Petroleum Chamber in Accra, the Minister acknowledged the challenges facing the sector, including declining crude oil production, regulatory failures, and diminishing investor confidence.
The Minister attributed these setbacks to poor decision-making and opacity in the industry, warning that Ghana’s upstream sector faces an imminent collapse if urgent measures are not taken. “The petroleum sector, which once showed a promising future, has retrogressed rapidly in recent years, with crude oil production dropping by over 30%,” he stated.
To address these challenges, the Minister announced plans to review the country’s upstream petroleum policies and regulatory framework to ensure fairness, consistency, and transparency. He stressed the need for predictability in the sector to attract and retain investors.
The Minister also emphasized the importance of the upstream sector to Ghana’s economy, noting that crude oil contributed about 35% of Ghana’s foreign exchange exports and 20% of domestic revenue in 2022. He revealed that Ghana spends about $1 billion annually on liquid fuel, highlighting the cost-saving benefits of transitioning fully to gas-powered electricity generation.
The meeting was attended by 21 industry players, both foreign and local, officials of the Ministry of Energy and Green Transition, GNPC, and Petroleum Commission. The Chief Executive of the Ghana Petroleum Upstream Chamber, David Ampofo, expressed confidence in the Minister and his ability to safeguard the fortunes of the industry.
As Ghana’s petroleum sector stands at a crossroads, the Minister’s call for collaboration is a beacon of hope for the industry’s revival. With the government’s commitment to resolving key industry disputes and creating an enabling environment for investment, stakeholders are optimistic about the sector’s future. As John Abdulai Jinapor aptly put it, “Together, we can turn this sector around.”
Ruth Abla ADJORLOLO
