Former Power Minister and former Chairman of Parliament’s Mines and Energy Committee, Dr. Kwabena Donkor, is advocating a fundamental shift in the country’s oil and gas governance framework to prioritize Ghanaian companies at the forefront of onshore petroleum exploration and production.
According to Dr. Donkor, Ghana should embed local participation requirements directly into the country’s Exploration and Production (E&P) legislation to ensure that Ghanaian firms lead future onshore oil and gas developments.
Speaking in an interview with The High Street Journal, the mining and energy consultant argued that while government policy already supports local participation in the sector, the absence of legal backing leaves the objective vulnerable.
“We need to tighten the screws on the framework of the policy that is in place, where concessions will be given to Ghanaian companies. We need to put that into the exploration and production law,” he noted.
Resource Nationalism Beyond Mining
The former minister says this proposal is in the broader context of resource nationalism. While much of Ghana’s recent resource nationalism debate has focused on the mining sector, particularly amid the fight against illegal mining, Dr. Donkor believes the petroleum industry deserves similar attention.
He noted that Ghana remains a relatively young player in the global oil industry and must consciously build indigenous capacity if it hopes to retain a larger share of the wealth generated from its natural resources.
“The whole issue of resource nationalism is not just in the mining sector. It must also apply to petroleum,” he stressed.
Why Onshore Is Different
Dr. Donkor indicates that there is a distinction between offshore and onshore petroleum operations.
Ghana’s offshore fields, particularly those located in deepwater and ultra-deepwater zones, require massive capital investments, sophisticated technology, and highly specialized expertise—factors that often make foreign participation unavoidable.
Onshore exploration, however, presents a different equation.
According to Dr. Donkor, the cost of exploration and production on land is significantly lower, making it a more realistic entry point for indigenous companies.
Unlike offshore projects that can cost hundreds of millions of dollars before a single barrel is produced, onshore operations typically involve lower technical and financial barriers.
For that reason, he believes Ghanaian firms are capable of mobilizing the resources needed to undertake such projects, particularly if they are allowed to partner with foreign technical experts and service providers.
“Ghanaian companies can buy in expertise. They can bring in service providers and foreign partners where necessary, but the Ghanaian companies must lead,” he said.
More Than Economics
Beyond the financial considerations, Dr. Donkor argues that onshore petroleum operations carry unique social and cultural implications that make local leadership particularly important.
Unlike offshore oilfields situated far from communities, onshore projects directly affect people, livelihoods, traditional authorities, and local ecosystems.
Issues such as land acquisition, community relations, compensation, cultural heritage protection, and environmental stewardship often determine whether projects succeed or fail.
Because Ghanaian companies are more likely to understand local realities and sensitivities, Dr. Donkor believes they are better positioned to navigate these complexities responsibly.
“There are human habitation issues. There are cultural sensitivities. These are things that local companies are naturally better placed to understand and manage,” he explained.
Building National Champions
The proposal also aligns with a long-term ambition shared by many resource-producing countries: creating national champions capable of competing globally.
Dr. Donkor envisions a future where indigenous firms gradually accumulate the expertise, capital, and operational experience needed to play larger roles across the petroleum value chain.
Under such a model, state institutions such as the Ghana National Petroleum Corporation (GNPC) and its exploration subsidiary, EXPLORCO, would work alongside private Ghanaian firms to lead onshore developments while leveraging foreign partnerships for technical support.
His position suggests a deliberate strategy of using less capital-intensive onshore projects as a training ground for local companies before they eventually take on larger and more complex opportunities.
The Bottomline
Critics, however, may caution that overly restrictive ownership requirements could discourage investment if local companies are unable to raise sufficient capital or manage operational risks.
For Dr. Donkor, the answer lies not in excluding foreign investors but in redefining their role.
Foreign expertise, technology, and financing would remain welcome, but under a framework where Ghanaian companies hold the driver’s seat.
As Ghana continues to explore opportunities to expand its petroleum industry beyond offshore fields, the former minister’s call may reignite debate over how the country can balance investment attraction with national ownership, a challenge that sits at the heart of resource governance across Africa.
