Ghana's Oil and Gas Industry Reforms: Unlocking Exploration, Growth, and Investment

The Ghana National Petroleum Corporation (GNPC) is also involved in expanding exploration in the Voltaian Basin, which is expected to see an exploration well drilled in 2025.

Ghana is rapidly evolving into a key player in Africa’s oil and gas sector, with a focus on increasing production from its mature oilfields while reversing natural declines. The country is making strategic moves to open up new areas for exploration, attract investment, and diversify its energy market by focusing on both upstream oil and gas development as well as its emerging natural gas sector. Central to these efforts are the ongoing reforms by the Petroleum Commission of Ghana, which serves as the national upstream regulator and is spearheading efforts to improve the operating environment for oil and gas companies operating in the country.

Strengthening Industry Reforms to Attract Investment

In a bid to boost exploration activity and unlock Ghana’s vast potential in both onshore and offshore markets, the Petroleum Commission is actively working to create an industry-friendly atmosphere. The country’s most prominent oil fields – including Jubilee and TEN (Tweneboa, Enyenra, and Ntomme) – are well-known for their production capabilities, and efforts are now being directed to adjacent unexplored blocks. By promoting undeveloped oilfields, Ghana is positioning itself to attract both local and international investors, ensuring the continuous exploration of untapped resources.

As part of these reforms, Ghana is striving to enhance the regulatory framework and provide clearer investment opportunities. One of the focal points of these reforms will be outlined during the “Invest in African Energies: Accra Investor Briefing,” set to take place at the Kempinski Hotel in Accra on April 14, 2025. The event, which is expected to draw industry leaders and stakeholders, will offer insights into Ghana's oil and gas landscape and highlight investment opportunities. Victoria Emeafa Hardcastle, the CEO of the Petroleum Commission, is set to address participants, sharing critical information about regulatory reforms, future exploration opportunities, and ongoing efforts to drive production growth.

This briefing will act as a precursor to the larger African Energy Week conference scheduled for later in the year, from September 29 to October 3 in Cape Town. The goal is to strengthen partnerships and lay the foundation for future deals that support Ghana's long-term industry objectives and energy goals.

Promoting a Diversified Energy Economy

In line with Ghana’s vision for energy diversification, one of the central strategies being implemented is the Gas Master Plan. This framework outlines the country’s ambitious goal of transforming its oil-dependent economy into a more diversified and integrated energy market. The plan promotes investments in the country’s gas value chain, with specific objectives that will help in unlocking the potential of the country’s abundant natural gas reserves. This strategic policy is set to shape the energy sector through 2040, offering a long-term blueprint for attracting both capital and technology to facilitate the development of gas infrastructure.

The success of the Gas Master Plan can already be seen through projects such as the Tema Floating Liquefied Natural Gas (FLNG) facility, under development in Accra. Once completed, the plant will have a capacity to store, re-gasify, and deliver liquefied natural gas (LNG) to off-takers in the Greater Accra Area. The $350 million project, managed by Helios Investment Partners, will process 1.7 million tons of gas annually, marking a major leap forward in Ghana’s effort to build a strong natural gas industry.

Additionally, Ghana is witnessing growth in its gas processing capacity with the expansion of the Atuabo Gas Processing Plant. This second-phase expansion, which is slated for completion in 2025, will add a capacity of 150 million standard cubic feet per day (mmscf/d), with future expansion plans aiming to double that figure. The expansion, costing around $700 million, will increase the country’s capacity to process and produce propane, butane, and pentane condensates. These developments are integral to transforming Ghana into a major regional hub for natural gas production and utilization.

New Exploration Projects and Growing Investment in Oilfields

Ghana's upstream oil sector is also attracting significant investment. The Petroleum Commission has been at the forefront of managing and regulating exploration activities, focusing on the development of new oil blocks and the enhancement of mature oilfields. With 17 new oil and gas projects scheduled for development by 2027, Ghana is on track to unlock its 1.1 billion barrels of crude reserves and 2.1 trillion cubic feet of natural gas.

One of the key developments is the continued success of the Jubilee and TEN fields. These major oil fields are expected to see additional production wells, with companies like Tullow Oil already drilling new wells as part of ongoing projects in the region. In Q1 2024, Tullow Oil successfully brought three new wells onstream at the Jubilee South East project, and in 2025, it will continue drilling with both producer and injector wells at the Jubilee field. Additionally, Tullow is advancing a 4D seismic survey across the Jubilee and TEN fields, providing valuable data for more efficient production and exploration.

The Ghana National Petroleum Corporation (GNPC) is also involved in expanding exploration in the Voltaian Basin, which is expected to see an exploration well drilled in 2025. This effort reflects the country’s commitment to improving its exploration capabilities and unlocking new reserves, in line with the broader goal of expanding its oil and gas production base.

An Industry Ready for Future Growth

The reforms and ongoing projects in Ghana’s oil and gas sector signify a country ready for major growth and development. By attracting investments in exploration, expanding gas infrastructure, and improving the regulatory environment, Ghana is positioning itself as a key player in Africa’s energy market. Industry leaders and stakeholders are optimistic about the future, and initiatives like the Gas Master Plan are set to drive further growth in the energy sector.

As Ghana moves forward, it is clear that the country’s oil and gas industry is at the cusp of a major transformation. With clear policies, strategic investments, and a growing focus on exploration, Ghana is laying the groundwork for an energy future that goes beyond oil, embracing the potential of natural gas and broader diversification. Through its efforts to reform, incentivize, and strengthen partnerships, Ghana is well on its way to becoming a key energy hub in West Africa.