Ghana Welcomes Shell and Chevron as it Seeks to Revive Declining Oil Output

Oil majors Shell and Chevron have signed a non-binding agreement to acquire production rights for Ghana's South Deepwater Tano Cape Three Points oil and gas block. The memorandum of understanding (MoU) with Ghana National Petroleum Corporation was signed on Tuesday, as the West African country aims to encourage investment and reverse declining output.

Ghana's crude oil production dropped from a peak of 71.44 million barrels in 2019 to 48.25 million barrels in 2024, according to the U.S. International Trade Administration. To boost production, major new investments are planned for the Jubilee and TEN fields, which could fund the drilling of up to 20 new wells.

The agreement provides a framework for further negotiations on final license terms, subject to relevant approvals. The Ghanaian government is currently reviewing its legal and fiscal framework for upstream petroleum activities, with proposed reforms including reducing GNPC's initial interest in upstream projects from 15% to 10%.