The Civil Society Alliance has urged the government to undertake extensive regulatory reforms within Ghana’s petroleum sector, particularly targeting upstream activities, to attract substantial investment and rejuvenate the industry.
The alliance contends that resolving policy inconsistencies and establishing a stable regulatory framework will aid in reversing the ongoing decline in domestic crude oil production and foster a more vibrant sector.
During a press conference, Nana Amoasi VII, Executive Director of the Institute for Energy Security, highlighted the urgent necessity for reforms to stimulate exploration and production activities in the upstream petroleum sector.
“In the last three to four years, we have observed a downturn in upstream petroleum production. Exploration efforts are nearly absent, primarily due to policy and regulatory uncertainties in the sector. We are calling on the government to ensure that policies are consistent and coherent to build confidence among current and prospective investors. A stable policy environment is essential for attracting long-term investments,” he stated.
Nana Amoasi VII further stressed the importance of enhancing the connection between the upstream and downstream petroleum sectors, advocating for the prioritization of crude oil allocation to local refineries.
“There must be a collaborative approach between the upstream and downstream sectors. Our petroleum agreements indicate that crude oil from domestic sources should be prioritized for local refineries, yet this is not being enforced. We are appealing to the government to uphold these agreements and regulations to improve domestic processing capabilities,” he remarked.
The suggested reforms aim to establish a conducive investment atmosphere while strengthening Ghana’s refining capacities, ensuring that the nation fully capitalizes on the economic advantages of its petroleum resources.
