Mahama government sets bold agenda to revive Ghana’s oil sector; Energy Minister outlines new policies

Ghana’s Energy and Green Transition Minister, John Abdulai Jinapor, says government is taking decisive steps to reverse the sharp decline in oil production and restore investor confidence in the petroleum sector.

Speaking at the 2025 Local Content Conference and Exhibition (LCCE) in Takoradi, the Minister announced a series of reforms aimed at “revitalising Ghana’s Petroleum Exploration and Production Sector, driving innovation, and redefining local content for a competitive energy economy.”

Sector Decline

Mr. Jinapor revealed that crude oil production has dropped by 32% between 2019 and 2025, falling from 71.4 million barrels to 48.2 million barrels.

“This downward trend tells a sobering story,” he said. “It not only reduces government revenue but limits opportunities for indigenous Ghanaian companies — the backbone of our local industry participation.”

He attributed the decline to regulatory inefficiencies, protracted licensing processes, ambiguous policies, and a burdensome tax regime that have made Ghana less competitive.

Policy Reset and Reforms

To address these challenges, the Minister announced a Legislative Review Committee tasked with assessing Ghana’s upstream petroleum laws and fiscal framework. The committee is expected to submit its report by the end of November 2025.

“The goal is clear: to attract new exploration investments, encourage reinvestment by existing operators, and enhance recovery from producing fields,” Mr. Jinapor stated, adding that the review could lead to amendments to the Petroleum (Exploration and Production) Act, 2016 (Act 919).

He also hinted at a review of fiscal terms to make Ghana’s upstream regime more flexible and investor-friendly, particularly for companies exploring deep-water and frontier basins like the Eastern/Keta Basin.