Concerns are being raised by stakeholders in Ghana’s extractive sector regarding the country’s declining attractiveness to investors in the upstream petroleum industry.
This concern arises after five years, concluding in 2024, during which no new petroleum agreements have been established. Concurrently, crude oil production has steadily decreased, dropping from a high of 71.44 million barrels in 2019 to merely 48.25 million barrels in 2024.
Dr. Steve Manteaw, Co-chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), links the waning investor interest to regulatory, operational, and market-related issues that necessitate immediate policy intervention.
He stated, ‘Ghana is not an appealing investment destination, which explains the absence of new contracts. We frequently find ourselves in international arbitration with various International Oil Companies (IOCs). Our fiscal regime requires reform. A cost-benefit analysis of our promotional efforts reveals that we are owed money.
When ExxonMobil exited, they cited our small block sizes and poor data quality.
What actions have we taken in response? Instead of spending money on global investor outreach, we should focus on resolving our internal issues.
There is a clear reason for our lack of attraction. ENI discovered oil in Ghana before making another discovery in Côte d’Ivoire, where they are now producing, while we are still in the development phase,’ he remarked during the launch of the 2024 Annual Report by the Public Interest and Accountability Committee (PIAC).
