Ghana Moves to Reverse Six-Year Oil Output Decline

Ghana is stepping up efforts to reverse a six-year decline in crude oil production, with Energy and Green Transition Minister Dr John Abdulai Jinapor holding discussions with the Ghana Upstream Petroleum Chamber on reforms needed to revive investment in the sector.

The engagement focused on the challenges facing upstream operators and the measures required to make Ghana’s petroleum industry more competitive, predictable and attractive to investors.

Jinapor said restoring investor confidence and increasing oil production remained among the government’s priorities, alongside expanding natural gas supply to meet rising domestic demand, particularly from the power sector.

“A key priority for government is to continue and deepen the reforms that have contributed to restoring confidence in Ghana’s upstream petroleum sector and creating a more attractive environment for investment,” Jinapor said in a post on Facebook.

Ghana’s oil production has fallen sharply from its 2019 peak. Data from the Public Interest and Accountability Committee (PIAC) show that crude output declined for six consecutive years, dropping from 71.44 million barrels in 2019 to 37.3 million barrels in 2025.

The decline has increased pressure on the government to improve the investment environment and encourage new exploration and field development.

Ghana links oil recovery to upstream reforms and investment

Jinapor noted that the government was pursuing policy, regulatory and infrastructure measures designed to address some of the constraints affecting the upstream industry.

An ongoing review of Ghana’s upstream legal and regulatory framework is expected to form part of these efforts, with the government seeking to improve the sector’s competitiveness and give investors greater confidence to commit capital to exploration and production.

The minister revealed that the government also want to extract greater value from the country’s petroleum resources by increasing domestic processing and utilisation.

“Our objective is to maximise the value of the oil and gas produced in Ghana by processing and utilising more of our resources domestically,” he said.

The discussions with the Upstream Petroleum Chamber also provided an opportunity for industry representatives to raise concerns with government and for both sides to strengthen cooperation on the reforms.

Jinapor noted that sustained engagement between government and industry would be important to building a more predictable and sustainable petroleum sector.

Gas supply adds another pressure point for Ghana’s energy sector

Alongside the decline in crude production, Ghana is seeking to increase domestic gas supply as demand from power generation continues to grow.

Jinapor opined that expanding gas availability would be critical to strengthening energy security and reducing the country's reliance on imported natural gas and other energy products.

The issue gives the upstream sector importance beyond oil revenues. Greater domestic gas production could provide additional fuel for power generation while reducing exposure to external supply and price pressures.

The government’s challenge, therefore, is not simply to raise crude output. It is also to create the investment and infrastructure conditions needed to develop Ghana’s oil and gas resources more efficiently and use a greater share of them within the domestic economy.