Govt’s commits to boost oil production competitiveness

The Minister of State for Energy, Herbert Krapa, has emphasized the government’s dedication to ensuring Ghana remains competitive among oil-producing nations in sub-Saharan Africa. According to Krapa, Ghana is losing out on potential investments due to the current 15% stake demanded from investors who seek to explore oil in Ghanaian waters. This requirement places Ghana at a disadvantage compared to neighboring countries, which only require a 10% stake from foreign investors. In response, the Ministry is seeking an amendment to reduce this demand to attract more investment.

Ghana to Host Africa Oil Week 2025

Krapa made this announcement during the media launch of Africa Oil Week 2025, which is set to be held in Ghana next October, marking the first time the continental event will be hosted outside of South Africa. The minister advocated for continued oil and gas exploration and development across Africa, noting the critical role these resources play in the continent’s economy, despite a global push to reduce reliance on hydrocarbons.

“Africa’s economy without oil and gas spells trouble,” he stated. “We cannot follow sheepishly any conversations about abandoning oil and gas. We will continue to explore, produce, and invest in this sector for sustainable development.”

Disappointment in Ghana’s Oil Production Capacity

Expressing disappointment in Ghana’s current production capacity, 15 years after first oil, Krapa remarked, “I’m not sure that production capacity is something we will be proud of. We need to focus on infrastructure development and ensure that upstream, midstream, and downstream sectors work together.”

Strategic Positioning for Africa Oil Week

With Africa Oil Week 2025 on the horizon, Krapa highlighted the need for the Petroleum Commission and Ghana National Petroleum Corporation (GNPC) to leverage the event. He underscored the importance of positioning these institutions to capitalize on the gathering of influential voices from Africa’s oil and gas industry.

Reducing Ghana’s Stake to Attract Investors

Echoing the minister’s sentiments, the Chief Executive Officer of the Petroleum Commission, Egbert Faibille Jnr., acknowledged that Ghana is in a competitive exploration market. He reinforced the need to reconsider Ghana’s stake in oil discoveries to attract foreign investors, aligning with the government’s strategy to make Ghana an attractive destination for oil investment.

Africa as a Global Energy Supply Hub

Paul Sinclair, CEO of Sankofa Events and Africa Oil Week, noted that Ghana exemplifies Africa’s potential as a resource-rich nation with a stable regulatory environment. He emphasized that Ghana’s position as a risk-adjusted producing nation showcases what is possible when natural resources meet strategic international partnerships. The organizers aim to make Africa a key supplier for global energy demand, harnessing the continent’s oil, gas, and energy sectors for improved energy access across Africa.

A Partnership for Socio-Economic Advancement

Sinclair also highlighted the collaborative vision between Africa Oil Week and the Africa Prosperity Network (APN), stressing that the partnership seeks to empower African economies by maximizing the continent’s natural resources. “This collaboration is about much more than an event; it is about helping our continent realize the full potential of its natural resources, generating wealth, building capacity, and empowering economies across Africa,” he stated.

Regional Integration through AfCFTA

Gabby Asare Otchere-Darko, the Executive Chairman and Founder of APN, emphasized the need to market Africa Oil Week 2025 as a West African event. He called for leveraging the African Continental Free Trade Area (AfCFTA) to drive the integration of the African oil and gas industry, presenting a united front in the global energy landscape.

By Selorm GBORBIDZI, Accra