Ghana is currently knocking on the doors of investors in the oil and gas space to increase activities in its upstream petroleum sector; however, this quest for new investments is coming at a time when global crude oil prices are slumping, casting a shadow on the country’s agenda.
The urgency driving Ghana’s current quest includes the maturing wells, natural decline, and delayed investments. The impact of the situation is manifesting in the country’s oil production, which has significantly taken a nosedive.
Already, the Public Interest and Accountability Committee (PIAC) has sounded the alarm bells of the declining production leading to lower than expected oil revenues.
For a country that has become heavily dependent on oil revenues to fund its annual budgets, finance infrastructure projects, and stabilize the economy in times of stress, the situation is distressing.
But it seems the global crude oil architecture is currently not aligning in favour of Ghana, as by January 2026, the global oil market is sending mixed signals. Prices are falling, but Ghana is still knocking on investors’ doors.
The Trend of Global Crude Prices
Crude oil slipped to about 56 dollars a barrel in early January 2026, extending a steady slide seen over recent months. From as high as 78 dollars per barrel a year ago, crude has lost close to 30 percent of its value within a year.
From Trading Economics, the price of the commodity has been fluctuating since June last year, but has never gotten to the levels it started 2025. With the persistent decline, the commodity is trading around 56 dollars per barrel currently.
Even the recent capture of the President of Venezuela, which was expected to cause an upset on the market, failed to live up to expectation causing the prices to dip further.
“WTI crude oil futures fell more than 1% toward $56 per barrel, extending losses from the previous session, after President Donald Trump said Venezuela would turn over between 30 and 50 million barrels of crude to the US. While the amount remains relatively small, markets fear that if Venezuelan oil flows into the US market sustainably, it could add supply to an already oversupplied market,” Trading Economics on Wednesday reported.
For now, supply is strong, demand growth is slower than expected, and major economies are adjusting to cleaner energy choices. For investors, cheaper oil often means slimmer profits, tighter budgets, and more caution before committing money to new oil fields.
Ghana’s Big Ask in a Tough Market
This is the maze Ghana finds itself in. The country wants to attract fresh investment into its upstream petroleum sector, meaning exploration and production of oil and gas. The government speaks openly about boosting output, discovering new fields, and restoring confidence in the sector.
But the timing is tricky. Experts explain that low global oil prices reduce the appeal of investing in new wells, especially in countries where costs are higher or rules are unclear.
For an investor sitting in Houston, London, or Singapore, Ghana is competing not just with its West African neighbours but with shale fields, offshore Brazil, and Middle Eastern producers with much lower costs.
Why Low Prices Can Scare Investors Away
The experts further explain that for upstream investors, price is everything. When crude trades above 80 dollars, many projects look profitable. At around 56 dollars, only the strongest survive.
Exploration becomes the first casualty. Drilling new wells is expensive, and there is no guarantee of success. If prices stay low, companies prefer to pump oil from existing fields rather than risk money on new discoveries.
There is also the issue of financing. Banks and shareholders are less willing to fund oil projects when future revenues look uncertain. For a country like Ghana, which still needs fresh capital and technology, this global caution can slow progress.
Is it the end of the Road for Ghana?
Indeed, prices matter, but they are not the whole story. Investors also look closely at stability, clarity, and trust. Ghana’s petroleum sector has strong foundations, including proven fields like Jubilee and TEN. But concerns remain.
Investors often raise questions about tax certainty, contract stability, delays in approvals, and the financial position of state institutions.
In a low-price world, these issues feel heavier. What might be tolerated when oil is expensive becomes a deal breaker when margins are thin.
What Ghana Can Do to Stay Attractive
Even in a weak oil market, some countries still attract investment. Ghana can do the same if it focuses on what it can control. The following are some of the critical issues within Ghana’s purview that it can control to attract investors, although prices are not favourable.
First, clarity is key. Clear fiscal rules, predictable taxes, and transparent contracts reduce fear. Investors are more willing to accept low prices if they know the rules will not change midway.
Second, speed matters. Faster licensing, quicker approvals, and efficient regulators can lower costs for companies. Time saved often means money saved.
Third, smart incentives can help. Temporary tax reliefs, flexible royalties, or shared infrastructure can make projects viable even at lower prices. These do not mean giving away national resources, but rather sharing risk wisely.
Fourth, gas can be a strong selling point. Gas projects linked to power generation and industry offer steady local demand. For investors, this can provide income even when oil prices are weak.
Finally, confidence must be rebuilt. Transparent handling of petroleum revenues, strong governance, and clear long-term plans signal seriousness. Investors value trust as much as geology.
The Bottomline
There is no doubt that the low crude prices are a real obstacle to Ghana’s upstream ambitions. They reduce appetite, raise doubts, and sharpen competition. But they do not make investment impossible.
If Ghana positions itself as a stable, clear, and efficient destination, it can still attract investors willing to take a long-term view.
Oil prices, as has been the case for almost all global commodities, will always rise and fall. What remains is the confidence investors have in a country’s system to do business in that system.
