The Government of Ghana has finalized a landmark $3.5 billion investment package aimed at revitalizing the nation’s struggling oil and gas sector, signing a Memorandum of Understanding with partners in the Jubilee/TEN and Offshore Cape Three Points fields. The Jubilee/TEN consortium will commit $2 billion, while OCTP partners have pledged $1.5 billion to stimulate production, expand reserves and restore waning investor confidence in Ghana’s upstream sector.
The announcement was delivered in Accra by Dr John Abdulai Jinapor, Minister of Energy and Green Transition, during the launch of the 2023 Ghana Extractive Industries Transparency Initiative Mining and Oil and Gas Reports. The investment forms part of a comprehensive strategy to arrest declining production rates that have threatened the sector’s contribution to national revenue and economic stability.
Dr Jinapor explained that ongoing policy and legislative reforms, including resolution of longstanding challenges around gas aggregatorship and enhanced regulatory certainty, have successfully attracted renewed interest from major international oil companies. These interventions are designed to sustain the sector’s vital role in the economy while broader structural reforms are implemented over the medium term.
The launch event highlighted transparency and accountability as cornerstones of effective resource management. Dr Steve Manteaw, Co-Chair of the GHEITI Multi-Stakeholder Group, emphasized that transparency initiatives have empowered citizens to demand greater accountability from government institutions managing natural resources. He noted that GHEITI-driven reforms have recovered over $700 million in additional revenue that might otherwise have been lost to inefficiencies and mismanagement.
According to Mr Patrick Nomo, Chief Director of the Ministry of Finance, the extractive sector contributed approximately GH¢16.7 billion to domestic revenue in 2023, representing about 7% of total government receipts. Transfers from extractive activities to sub-national authorities reached GH¢1.8 billion, supporting infrastructure development and local programs in mining and petroleum-producing regions. The sector also generated net foreign exchange inflows of $3.9 billion, helping stabilize Ghana’s balance of payments and support the national currency.
Mr Nomo reported that compliance in the extractive sector has improved significantly, with over 94% of registered companies submitting returns on time and reconciliation coverage exceeding 97%. He stressed that GHEITI reports remain critical tools for fiscal forecasting, national planning and policy formulation, providing independently verified data to guide decision-making and ensure prudent management of Ghana’s natural resource wealth.
The investment package is expected to halt production declines and potentially reverse the trend by 2027, with production targets being revised upward as new drilling campaigns commence across the offshore fields.
Source: ghanaiantimes.com.gh via allafrica.com