President John Dramani Mahama has urged international oil companies to accelerate crude oil production in Ghana, warning that the global shift to renewable energy could render the country’s petroleum resources stranded if urgent action is not taken.
Speaking at the Africa CEO Forum in Abidjan on Tuesday, Mahama made a direct appeal to investors, promising a favourable regulatory environment to boost production while demand for fossil fuels remains strong.
“Oil is in transition. Everybody who has any assets should be pumping like there’s no tomorrow,” he said. “I will lay a red carpet for anyone willing to drill and pump oil because in the next decade or two, the world will have fully transitioned to renewables.”
The president’s remarks come as global oil demand faces increasing pressure from climate policies and technological advancements in renewable energy. Industry analysts warn that countries like Ghana, which are heavily dependent on oil revenues, risk being left with untapped reserves if they fail to ramp up production.
Regulatory Challenges and Missed Opportunities
Mahama also criticised the previous Akufo-Addo administration for what he described as regulatory inefficiencies that discouraged investment and slowed oil exploration. He cited the case of Italian energy giant ENI, which he said was forced to relocate its expatriate management team to Côte d’Ivoire due to legal disputes and regulatory uncertainty.
“ENI was held in contempt and had to move all their expatriate management to Cote d’Ivoire. Now they are back and drilling again,” Mahama noted, stressing the need for a more investor-friendly approach to boost sector confidence.
Falling Oil Production and Economic Impact
Ghana’s crude oil production has been declining in recent years, with output dropping from 71.44 million barrels in 2019 to 48.25 million barrels in 2023, according to the Public Interest and Accountability Committee (PIAC). The committee attributed the decline to reduced investment in new wells, regulatory challenges, and operational setbacks.
Mahama linked the slump to what he described as “disinvestment” during the previous government’s tenure, arguing that prolonged disputes with major players like Tullow Oil undermined the sector’s growth.
Balancing Fossil Fuels with Renewables
Despite his push for increased oil production, Mahama reiterated Ghana’s commitment to renewable energy, noting that the country’s Renewable Energy Act mandates that at least 10 percent of its energy mix should come from renewable sources.
“While we push for more oil production, we remain committed to our renewable energy targets,” he said, emphasising the importance of a balanced energy strategy.
Preparing for the Future
As global energy markets shift, Mahama’s comments reflect the urgency felt by many oil-dependent economies to maximise returns before the world fully transitions to cleaner energy sources.
With the stakes high and time running out, the president’s message to oil companies was clear: the window for profitable oil extraction is narrowing, and Ghana is prepared to do what it takes to attract investment and avoid the financial risks of stranded assets.
