The government is preparing a major overhaul of Ghana’s petroleum upstream investment regime after acknowledging that longstanding fiscal and regulatory challenges undermined investor confidence and contributed to a decline in investment by major international oil companies.
Deputy Minister for Energy and Green Transition Richard Gyan-Mensah said the government is using recommendations from the Upstream Reform Committee to implement reforms aimed at improving Ghana’s competitiveness and attracting new capital into the oil and gas sector.
Speaking at the Africa Business Conversation organised by AB & David Africa on the theme “From Investor Interest to Committed Capital: How to Reset Ghana’s Petroleum Upstream Sector for Sustainable Investments,” Mr. Gyan-Mensah said restoring confidence among international investors has become a key priority.
He noted that government has engaged industry players to address unresolved legacy issues that had created uncertainty in the sector and affected Ghana’s ability to compete for global investment.
According to him, some international energy companies have already expressed renewed interest in Ghana’s upstream sector following recent engagements.
However, he cautioned that renewed interest alone would not guarantee investment unless Ghana provides the commercial and regulatory conditions needed for long-term oil and gas development.
“Capital is committed only where there is regulatory certainty, competitive fiscal terms, business-friendly environment, reliable data and the infrastructure needed to bring discoveries to market,” he said.
Mr. Gyan-Mensah disclosed that the government has received the Upstream Reform Committee’s report, which proposes measures to strengthen investor confidence, reduce the cost of doing business and improve the overall investment climate in the petroleum sector.
He said the next phase of the government’s strategy is to translate the committee’s recommendations into concrete policy and regulatory reforms.
The reforms are expected to focus on enhancing fiscal competitiveness, improving regulatory efficiency and creating a more predictable investment environment as Ghana seeks to compete with other African petroleum-producing countries for increasingly mobile global capital.
The government believes that a more attractive upstream investment framework will be critical to unlocking new exploration activity, sustaining oil and gas production and supporting long-term economic growth.
