Ghana’s President John Mahama has called on international oil companies to expedite crude oil production in the country, stressing the urgency to capitalize on existing reserves before the global shift to renewable energy diminishes their value.
Speaking at the Africa CEO Forum in Abidjan on Tuesday, Mahama stated, “Oil is in transition. Everybody who has any assets should be pumping like there’s no tomorrow.”
The president also extended an open invitation to investors, saying, “I will lay a red carpet to anybody who wants to drill and pump oil because in the next decade or two, the world would have made a transition to renewables.”
Mahama criticised the previous administration for regulatory challenges that, he claims, deterred significant investors such as Tullow Oil and ENI.
According to the Public Interest and Accountability Committee, Ghana’s crude oil production declined from 71.44 million barrels in 2019 to 48.25 million barrels in 2023, primarily due to decreased investments in new wells.
While advocating for increased oil drilling, Mahama also reaffirmed Ghana’s commitment to renewable energy, noting that the country’s Renewable Energy Act mandates that at least 10% of the energy mix should derive from renewable sources.
Ghana’s significant offshore oil resources include the Jubilee Field, managed by Tullow Oil, and the TEN and Sankofa fields, involving companies like Kosmos Energy, PetroSA, and the state-owned GNPC.
Mahama’s administration aims to revitalize the petroleum sector by attracting new investments and ensuring that Ghana benefits from its oil reserves before the global energy landscape shifts further towards renewables.
The government has committed to a comprehensive decade-long plan to construct three new oil refineries, five petrochemical plants, and ten tank farms, in what is seen as a major shift in the nation’s hailing energy sector in years.
Ghana depends on imports for over 97% of its petroleum products.
The overreliance on imports has worsened the country’s energy debt crisis, a situation Mahama says must change.
The country recently kicked off operations at the newly inaugurated Sentuo Oil Refinery.
The first phase of the plant will process 40,000 barrels per day, and will scale up to 100,000 barrels per day when the second phase is completed.
