Ghana Commits $3.5 Billion to Reverse Declining Oil Production

Ghana is pushing to reverse declining oil production and attract more investment in its upstream sector. The government has committed $3.5 billion for new investments, aiming to boost crude output and reduce reliance on expensive liquid fuels.

The initiative follows a significant decline in crude oil production from 71.4 million barrels in 2019 to about 36 million barrels in 2025. To address this issue, the government has revised petroleum agreements covering the Jubilee and OCTP fields, which will support drilling at least 10 new wells and expand gas production.

The reforms also aim to increase the Ghana National Petroleum Corporation's (GNPC) participating interest in the two agreements by 10 percentage points from 2036. According to Dr. Forson, presenting the 2026 Mid-Year Fiscal Policy Review, these changes will make the country more competitive for upstream investment.

The government is also advancing plans for a 100 million standard cubic feet per day modular gas processing facility in partnership with the private sector. This project is expected to create nearly 1,000 jobs and generate about $2 billion in benefits to the state over five years through fuel savings, foreign exchange savings, taxes, levies, and dividends.