Ghana Offers Shell and Chevron Lower State Stake in Bid to Revive Deepwater Oil Investment
Ghana is offering Shell and Chevron more favorable terms to develop the South Deepwater Tano Cape Three Points block, including reducing the Ghana National Petroleum Corporation's (GNPC) carried interest from 15% to 10%. This move aims to reverse declining oil production and attract fresh investment into the upstream sector.
The country's crude oil production fell for a sixth consecutive year in 2025, declining from 71.44 million barrels in 2019 to 37.3 million barrels. Energy Minister John Jinapor framed the trade-off as 'I'm better off having 10% of 1 billion than 15% of 1,000,' highlighting the challenge facing Ghana's upstream sector.
The proposed reduction is not just a technical change but a bet that a smaller share of a potentially larger discovery can make Ghana more competitive for capital. The government is also considering extending petroleum agreements from 25 to 30 years and allowing tax losses to be carried forward for up to 10 years, rather than five.