Four of the world’s biggest oil companies are ready to bid for Ghana blocks but a stalled legal reform process is holding up their commitment
Chevron, ExxonMobil, Shell and Eni have each signalled interest in acquiring new acreage in Ghana’s upstream sector, yet none can move forward without a settled regulatory framework, according to Dr. Kwabena Donkor, former Energy Minister and past chairman of Parliament’s Mines and Energy Committee.
The bottleneck lies in three pieces of legislation under prolonged review: the Petroleum Exploration and Production Act (Act 919), the Ghana National Petroleum Corporation Act and the Petroleum Commission Act. The government has signalled its intention to modernise the laws but has not concluded the process, leaving new licensing rounds in limbo and investment decisions deferred.
Côte d’Ivoire is taking advantage of the delay. Dr. Donkor described Ghana’s western neighbour as now more competitive for upstream capital, with faster licensing processes and clearer fiscal terms pulling investors away. “You can’t hold capital hostage,” he said.
The stakes are considerable. Ghana’s upstream output has fallen from its peak since the Jubilee field began producing in 2010, making new licensing rounds critical to sustaining oil revenues over the next decade. Without a finalised legal framework, companies cannot commit to long term exploration programmes or sign production agreements with sufficient certainty over cost recovery and fiscal terms.
Trade publication The High Street Journal reported signs of reduced activity at the Petroleum Commission, with fewer active licensing negotiations running as the investment pipeline has slowed.
Dr. Donkor is pressing the government to complete the reviews without further delay, arguing that Ghana has already ceded ground to Côte d’Ivoire and must restore its reputation for regulatory predictability to win back the capital currently eyeing its neighbours.