During a roundtable meeting with the Ghana Upstream Petroleum Chamber in Accra last Thursday, Energy Minister Matthew Jinapor announced plans to review upstream petroleum policies to enhance fairness, consistency, and transparency in the sector.
He acknowledged significant challenges, including declining crude oil production, regulatory failures, and waning investor confidence, which necessitate this policy overhaul. Jinapor highlighted the upstream industry’s vital role in Ghana’s economy, noting that crude oil represented about 35% of foreign exchange exports and 20% of domestic revenue in 2022. He pointed out that Ghana spends over $1 billion annually on liquid fuels, advocating for a shift to gas-powered energy generation to save costs.
The minister warned that the sector risks imminent collapse unless current trends are reversed, emphasizing the need for an enabling environment to attract investments. He also committed to resolving key industry disputes, such as the ENI unitization issue, which has affected Ghana’s international standing. David Ampofo, Chief Executive of the Ghana Petroleum Upstream Chamber, expressed the Chamber’s support for the minister’s initiatives and commitment to tackling sector challenges. This review aims to restore confidence among investors and ensure the sustainable growth of Ghana’s upstream petroleum industry.