The Ghanaian government has announced measures to halt declining crude oil production and restore investor confidence in the petroleum sector after output fell 32 percent between 2019 and 2024.
Production dropped from 71.4 million barrels in 2019 to 48.2 million barrels in 2024, according to Public Interest and Accountability Committee (PIAC) reports. The decline has reduced government revenue, foreign exchange earnings, and opportunities for local service companies operating within the sector.
The government believes recent trends can be reversed through policy reforms and stricter enforcement of contractual obligations. Officials have outlined several initiatives aimed at stimulating fresh investment and improving overall sector performance.
Minister for Energy and Green Transition Dr. John Abu Jinapor directed companies holding petroleum blocks to meet agreed work commitments or face license termination. He stated that the Petroleum Commission received instructions to prepare an advisory on enforcement actions.
“Ghana’s natural resources must generate value for citizens, not sit idle under speculative control,” Jinapor declared. The measure aims to liberate dormant blocks and create space for companies prepared to invest in exploration and production activities.
The government has formed a Legislative Review Committee to examine the Petroleum (Exploration and Production) Act, 2016 (Act 919) and related policies. The review will assess fiscal terms for frontier areas, including deep water zones and the Eastern and Keta basins.
Jinapor explained that revised frameworks must reward companies undertaking high risk exploration while ensuring Ghana secures fair benefits. The objective involves creating more predictable and competitive conditions that encourage responsible investment.
No new petroleum agreements have been signed since 2018, according to PIAC documentation. The investment drought has contributed significantly to production declines affecting public finances and employment levels.
Government officials emphasized plans to increase Ghanaian participation across exploration, field development, and support services. Initiatives include promoting local content requirements, expanding technical skills, and enhancing domestic value retention throughout the petroleum value chain.
Acting Chief Executive Officer of the Petroleum Commission Madam Victoria Emefa Hardcastle described ongoing efforts as a revitalization strategy. She highlighted priorities including improved regulatory efficiency, innovation encouragement, and positioning Ghana as a competitive energy market.
Hardcastle expressed confidence that reforms will boost investor confidence and expand opportunities for indigenous companies operating in the sector.
The production decline poses risks for public finances, export earnings, and employment prospects. Local service companies have experienced particular hardship as production activities slow across operational fields.
Reversing the downward trend could strengthen government revenue, support the cedi through improved foreign exchange inflows, and sustain jobs within the energy sector. Analysts view the reforms as essential for protecting national value from oil resources.
The government’s approach signals a shift toward more active oversight of petroleum assets and clearer investment rules. Effective implementation could unlock new exploration activity, advance stalled field developments, and stabilize production levels in coming years.