Ghana signed a term sheet on 5 May 2026 with Eni Ghana Exploration and Production Limited, Vitol Upstream Ghana Limited, and the Ghana National Petroleum Corporation (GNPC) to advance a major offshore gas expansion, targeting an additional 350 million standard cubic feet per day (MMscfd) of output by 2028 from the Offshore Cape Three Points (OCTP) block.
Energy and Green Transition Minister John Jinapor and Finance Minister Dr. Cassiel Ato Forson signed on behalf of government, committing Ghana to a commercially structured path toward developing the Gye Nyame field, installing a booster compressor, and adding a new non-associated gas (NAG) system aboard the project’s floating production, storage and offloading (FPSO) vessel.
The significance runs deeper than the headline output figures. Operational since August 2018, the OCTP project currently provides around 70 percent of Ghana’s total domestic gas supply, primarily for electricity generation. Any disruption to that supply chain carries direct consequences for households and industrial consumers across the country. The NAG Upgrade Project addresses that exposure by shifting Ghana’s gas base away from associated gas, which is tied to oil production cycles and therefore subject to volatility when output dips.
The OCTP project is operated by Eni Ghana with a 44.4 percent stake, in partnership with Vitol Upstream Ghana at 35.6 percent and GNPC at 20 percent.
The term sheet formalises commercial principles first signalled at Africa Oil Week in Accra in September 2025, when the same parties signed a Memorandum of Intent (MOI) committing to deepen collaboration on upstream investments. The move from intent to binding commercial framework in under eight months reflects the pace at which Accra is seeking to lock in capital commitments ahead of 2028 delivery timelines.
Jinapor said the signing “sends a strong signal that Ghana’s upstream petroleum sector remains open, stable, and ready for investment,” adding that it reflects the government’s commitment to a predictable and competitive environment for partners.
That message targets international investors who are becoming more selective about where upstream capital is deployed. A commercially clear, government-backed framework reduces the risk premium for the kind of technically complex offshore development the NAG upgrade represents.
Natural gas from OCTP now supports around 34 percent of Ghana’s electricity generation, and expanding that base reduces reliance on oil-fueled power generation while aligning with broader sustainability goals.
Ghana’s power sector has long been constrained by fuel supply gaps that force expensive and polluting alternatives. A reliable, domestically sourced gas base at materially higher volumes would ease pressure on foreign exchange reserves spent on fuel imports and give grid operators more predictable feedstock to manage rising demand from industry and households.
Execution over the next two years will test whether the commercial framework holds under the kind of cost and commodity pressure that has rattled energy projects globally. For now, the deal marks the most concrete step in Ghana’s upstream gas agenda since the original OCTP project came online, and positions the country to deepen its role as a gas supplier within the West African region.
