Ghana is urging investors to help boost oil production as the global push for decarbonization threatens to leave fossil fuel assets stranded.
- Ghana is encouraging increased oil production amidst global emphasis on decarbonization.
- President John Mahama highlighted the decline in oil output and the need for renewed investment during the Africa CEO Forum.
- Despite calls for expanding oil drilling, Ghana continues to uphold commitments to clean energy targets.
Ghana is urging investors to help boost oil production as the global push for decarbonization threatens to leave fossil fuel assets stranded.
President John Mahama made the appeal during the Africa CEO Forum held on Tuesday in Abidjan, Ivory Coast.
“Oil is in transition and so anybody who has any assets should be pumping like there’s no tomorrow,” he said, signalling Ghana’s readiness to welcome investors with open arms. “We’re rolling out the red carpet for anyone ready to drill.”
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Oil output declines
Ghana’s oil production has declined steadily over the last five years, largely due to limited investment in new exploration and field development.
According to the Public Interest and Accountability Committee (PIAC), Ghana’s oil output fell to 48.3 million barrels in 2024, slightly below the 48.2 million barrels produced in 2023, and well down from a peak of 71.4 million barrels in 2019.
Mahama attributed the decline in output to regulatory uncertainty, which he said drove some major players away.
“ENI was held in contempt and they had to move all their expatriate management to Cote d’Ivoire,” he noted, adding that now the company was “back and they are drilling again”.
Mahama’s call to action echoes a growing sentiment among oil-producing nations, including recent appeals by U.S. leaders for increased domestic output.
OPEC, too, has raised production levels, contributing to a roughly 13% drop in Brent crude prices this year, now hovering around $65.3 per barrel, per Bloomberg.
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While advocating for increased oil drilling, Mahama emphasised that Ghana must stay committed to its clean energy targets. He noted that under the country’s Renewable Energy Act, at least 10% of the national energy mix is mandated to come from renewable sources.
Elected in December, Mahama has pledged to revive Ghana’s struggling economy, which is still reeling from a debt crisis and rising cost of living. Reflecting on past government priorities, he said, “The environment got a bit toxic. The government did not seem to prioritise the sector.”
