Ghana’s oil output has declined by nearly 50% since its 2019 peak, prompting the Ghana National Petroleum Corporation (GNPC) and government to implement new investor incentives.
Production fell below 120,000 barrels per day from a high of 195,750 barrels, attributed to reduced drilling and missed exploration opportunities worth approximately $1 billion.
Annual drilling rates dropped from five wells (2008-2014) to one well (2016-2022), as existing financial terms deterred investment. GNPC Acting CEO Kwame Ntow Amoah identified unfavorable policies as the primary constraint, noting competing African nations advanced while Ghana’s oil-inclusive GDP underperformed non-oil GDP.
New measures include revised royalties, tax incentives, and profit-sharing structures developed with the Petroleum Commission and Ministry of Energy. Early results emerged this month with a license extension agreement for the West Cape Three Points and Deep Water Tano blocks. The deal, involving Tullow Oil, Kosmos Energy, PetroSA, and GNPC subsidiary Explorco, includes plans for 20 new Jubilee field wells potentially attracting $2 billion investment.
Exploration activities are projected to increase from 2026, aiming to stabilize and eventually grow production. The initiatives target reversing what industry analysts describe as Ghana’s “lost decade” in petroleum development.
Ghana’s rapid transition from 2007 discovery to 2010 production initially positioned it as Africa’s fastest-growing oil economy before policy and investment challenges triggered the sustained decline now being addressed.
