After years of mounting concern over Ghana’s dwindling crude oil output, a fresh wave of optimism is sweeping across the country’s upstream petroleum sector, thanks to the readiness of the country’s national oil company to undertake exploration onshore.
Beyond investor confidence, the potential for rising petroleum revenues is also triggering renewed hope for increased economic gains.
For some time now, watchdog institutions like the Public Interest and Accountability Committee (PIAC), along with key players in the extractive space, have raised red flags about the persistent decline in oil production, urging swift action to arrest the slide.
Their concerns were echoed in PIAC’s 2023 Annual Report, which revealed that crude oil output shrank by 6.78% in 2022, contributing to a worrying average annual drop of 9.2% since 2019.
Now, with GNPC’s exploration arm, EXPLORCO, setting sights on drilling its first exploration well in the Voltaian Basin by early 2026, stakeholders are hailing it as a long-overdue turning point in Ghana’s oil narrative.
The announcement was made during the Invest in African Energies: Accra Briefing, held in Accra, which brought together key industry stakeholders to explore upstream opportunities and attract investment ahead of the African Energy Week in Cape Town later this year.
EXPLORCO’s Managing Director, Michael Aryeetey, described the Voltaian project as a historic milestone.
“This will be the first well drilled in the Voltaian since 1974. It’s a key project for the country and there is a lot to explore in the basin. That is why we are inviting credible partners to come on board,” he said. The company is currently undertaking preliminary research and is actively seeking partners to unlock the basin’s full potential.
The investor briefing placed Ghana’s upstream prospects at the center of discussions, with a focus on infrastructure-driven exploration and opportunities for direct negotiation on unlicensed offshore blocks. Deputy Minister of Energy and Green Transition, Richard Gyan-Mensah, emphasized that Ghana remains open to business and is ready to welcome investors through partnership or farm-in opportunities. He added that risk has already been significantly reduced in several blocks, making them more attractive.
NJ Ayuk, Executive Chairman of the African Energy Chamber, applauded Ghana’s proactive approach, describing it as a “Ghana-first strategy” that benefits both investors and the country. “Ghana is back and ready for investment. This is the moment to believe in Ghana’s energy potential,” he urged.
Reinforcing that sentiment, David Pappoe, President of the Chamber in Ghana, noted that the country’s energy sector is at a pivotal stage and that increased investment is essential to unlocking its potential.
The briefing also shed light on recent regulatory improvements aimed at streamlining upstream activities. Victoria Emeafa Hardcastle, Acting CEO of the Petroleum Commission, revealed that work is ongoing to enhance the fiscal regime, speed up permitting processes, and address compliance bottlenecks. Plans for a licensing round are in motion, pending ministerial direction.
A recurring theme at the event was the urgent need to reverse production decline in Ghana’s oil sector. Edward Abambire Bawa, CEO of GOIL, cited a 25 percent drop in output since 2019, largely due to underinvestment. He said the company is actively exploring new opportunities to revive production.
Efforts to boost output at the Jubilee and TEN fields are also gaining momentum. Victor Kofi Sunu-Attah, a former GNPC advisor, revealed that over 640 million barrels of oil and 1.2 trillion cubic feet of gas remain untapped in those fields and surrounding areas. “We’re conducting research to bring these resources to surface. There are opportunities for investors to work with companies that already hold seismic data and are ready to drill,” he said.
The Accra Investor Briefing set the tone for deeper conversations and deal-making at the upcoming African Energy Week in Cape Town from September 29 to October 3. The event is expected to draw a wide array of stakeholders eager to capitalize on Ghana’s evolving energy landscape.
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