The government has given the assurance that it is gearing up to confront one of the country’s most pressing energy sector challenges head-on, which is the declining investment in the upstream petroleum sector.
The declining investment in the upstream sector, many industry experts warn, could threaten national energy security and jeopardize revenues if left unchecked.
Speaking at the Ghana Energy Awards, Deputy Minister for Energy and Green Transition, Richard Gyan Mensah, delivered a message of optimism and commitment that the state is poised to reverse the slump, restoring investor confidence, and keeping Ghana’s energy future intact.
He explained that the upstream sector, where oil and gas exploration and production happen, is the backbone that keeps thermal plants running, industries active, households powered, and government revenue flowing.
When investments dry up, new oilfields are not explored, old wells decline, gas supply shrinks, and the country risks facing power shortages, rising fuel costs, and shrinking export earnings.
This means that if nothing drastic is done, the chain reaction will hit ordinary Ghanaians the hardest. To put it simply, less gas means more expensive fuel for power plants. This can easily lead to unstable electricity supply and higher tariffs.
But in a word of assurance, the Deputy Minister emphasized that the government is not waiting for that worst-case scenario. He assured industry players that fuel supply to thermal plants has already improved, gas supply is steadily increasing, and key financial obligations, which once scared off investors, are now being addressed.
According to him, early signs show that confidence is slowly returning to the sector.
“We have a responsibility to keep the lights on to power our industry and light up our homes and our path. We have a responsibility, and we assure you that with our efforts and with your collaboration, we are going to reverse the declining investments and development in our petroleum upstream sector,” the Deputy Minister stressed.
Beyond petroleum, he also reiterated the government’s renewed push for renewable energy, saying the country remains committed to expanding its clean energy share while ensuring every Ghanaian, no matter how remote their community, gets connected to the national grid.
He admitted that the energy sector is not completely out of trouble. But with “difficult decisions, disciplined management, strengthened stakeholder engagement, and renewed investment outreach,” the ministry believes the turnaround has already begun.
“We’re also giving you the strongest assurance that we are going to pursue our aim of increasing the contribution of renewable energy in our national energy generation mix. And I also want to say that we are looking forward to every Ghanaian, wherever you are. Whether you are on the island, you are far too reach, we are going to make sure that with the efforts you are putting in place, you will be connected to the national grid,” he added.
“Through difficult decisions, disciplined management, and strengthened stakeholder engagement and renewed investment outreach, we have begun stabilising the sector. Our reforms are evident. But let me be clear, we are not out of the woods yet,” he cautioned.
Richard Gyan Mensah says the government acknowledges the challenges, and it is on the path to fix systemic failures, reassure investors, and keep the sector stable long enough to attract new capital.
