The Minister of Energy and Green Transition, Dr John Abdulai Jinapor, has urged players in the petroleum and energy sectors to position themselves strategically to take advantage of current shifts in global energy markets and make Ghana a dependable long-term investment destination.
He said global volatility is repricing risk, forcing Ghana to compete on certainty in a world where private capital is increasingly cautious about hydrocarbon exploration. "Ghana must compete on certainty, hence to attract the needed investment for exploration in a highly volatile and competitive environment," the minister said at the launch of the 15th anniversary celebrations of the Petroleum Commission in Accra last Tuesday.
The Petroleum Commission was established on July 14, 2011, when the Petroleum Commission Act, 2011 (Act 821) received presidential assent, created as an independent body to manage and regulate the country's upstream petroleum sector following commercial oil and gas discoveries.
Jinapor said the global energy landscape has entered a period of heightened risk and uncertainty, with markets reshaped by geopolitics, supply disruptions and sanctions, citing the Russia-Ukraine war, conflict in the Middle East and disruptions in Venezuela as examples. "This creates a strategic opening for Ghana as investors look for alternative crude oil supply. A key priority for government is to continue and deepen the reforms that have contributed to restoring confidence in Ghana's upstream petroleum sector and creating a more attractive environment for investment," he said.
He said this moment calls for a fair, transparent and robust regulatory and legislative regime, and congratulated the Commission for growing into what he called a first-rate regulator over the past decade and a half. "From managing early data acquisitions to regulating complex, multi-field operations across the Jubilee, TEN and Sankofa-Gye Nyame fields, and enhancing Ghanaian participation in the petroleum sector, the commission has proven that local capacity could meet global standards with absolute integrity," he said, noting that as of the first half of this year, nearly $5 billion out of a total $22.3 billion invested had gone to Ghanaian companies.
Jinapor announced that under President John Dramani Mahama, the upstream petroleum industry has seen a marked improvement in investor confidence. "All disputes between upstream oil and gas players and the government of Ghana have been promptly resolved, paving the way for more investments," he said, adding that for the first time in the sector's history, nearly all super majors have expressed interest in acquiring acreages in Ghana's geological basins, particularly frontier areas. He said petroleum agreement negotiations were already under way, with new deals expected in the coming weeks.
As further evidence of the reset in investor confidence, he said Jubilee and TEN partners have committed to invest $2 billion in further development activities. "This investment will result in the drilling of at least 10 new wells, increasing gas production and reducing the Jubilee gas price by approximately 18 per cent, saving the country nearly $300 million in power generation cost," he announced.
The Chief Executive Officer of the Commission, Emeafa Hardcastle, said the regulator has spent the past 15 years establishing itself as a firm regulatory body, balancing statutory oversight and compliance with the need to keep Ghana an attractive investment destination. "Today, the commission serves as a benchmark for petroleum regulatory frameworks across the African continent," she said, noting that since the passage of L.I. 2204 in 2013, the Commission has been intentional about the growth, survival and participation of indigenous Ghanaian companies in the industry, particularly in mid-technical services once dominated by foreign firms.
Hardcastle said promoting in-country value addition and linkages with other sectors of the economy has been paramount, helping prevent the petroleum sector from becoming an enclave economy.
