The Minister for Energy and Green Transition, Hon. John Abdulai Jinapor has assured the Ghana Petroleum Upstream Chamber of the government’s commitment to revitalizing the country’s struggling upstream petroleum sector, pledging to work closely with stakeholders to restore investor confidence and enhance production.
Speaking at a round table meeting with the Ghana Upstream Petroleum Chamber in Accra, Hon. Jinapor acknowledged the challenges facing the sector, including declining crude oil production, regulatory failures, and diminishing investor confidence. He attributed these setbacks to poor decision-making and opacity in the industry, warning that Ghana’s upstream sector faces an imminent collapse if urgent measures are not taken.
“The petroleum sector, which once showed a promising future, has retrogressed rapidly in recent years, with crude oil production dropping by over 30% with exploration, appraisal, and development are at their lowest since 2017,” he stated.
The Minister in highlighting the importance of the upstream sector to the country’s economy, noted that crude oil contributed about 35% of Ghana’s foreign exchange exports and 20% of domestic revenue in 2022. He also emphasised the cost-saving benefits of transitioning fully to gas-powered electricity generation, revealing that Ghana spends about $1 billion annually on liquid fuel.
To address the challenges, the Minister announced plans to review the country’s upstream petroleum policies and regulatory framework to ensure fairness, consistency, and transparency. He stressed the need for predictability in the sector to attract and retain investors.
“The hard truth is that the upstream sector faces imminent collapse if the current trend is not reversed. We must create an enabling environment for investment through policy consistency, transparency, and effective regulation,” he added.
He assured stakeholders that the government is committed to resolving key industry disputes, including the ongoing ENI unitization issue, which has affected Ghana’s international reputation.
As part of efforts to stabilize the upstream sector, Hon. John Abdulai Jinapor emphasised that his office remains open for dialogue, suggestions, and constructive criticism.
“I do not claim to know it all. There is a lot more to learn from you, and together, we can turn this sector around,” he assured industry players.
Speaking on behalf of the Ghana Petroleum Upstream Chamber, the Chief Executive, Mr. David Ampofo expressed confidence in the Minister and his ability to safeguard the fortunes of the industry. He assured him of their support and commitment to reforms aimed at addressing pertinent issues in the sector.
The meeting was attended by 21 industry players, both foreign and local, officials of the Ministry of Energy and Green Transition, GNPC, and Petroleum Commission.
