Ghana’s crude oil production has increased by approximately 30 per cent, marking a significant recovery after five consecutive years of declining output, the Minister for Energy and Green Transition, John Abdulai Jinapor, has announced.
The minister disclosed this at African Energy Week 2026 in Cape Town, South Africa, attributing the improvement to renewed investment and development activities under a US$2 billion memorandum of understanding signed with Jubilee field partner Kosmos Energy in 2025.
The agreement involving the Jubilee and Tweneboa-Enyenra-Ntomme (TEN) fields includes licence extensions to 2040 and is intended to encourage further investment, increase crude oil production and expand affordable natural gas supplies for Ghana’s domestic electricity generation.
As part of the initiative, an amended Jubilee field development plan provides for the drilling of up to 20 additional wells to support production growth and maximise the country’s petroleum resources.
Ghana Reverses Five-Year Decline in Oil Production
Speaking at the international energy conference, Mr Jinapor said the government’s collaboration with petroleum industry operators was beginning to deliver measurable results.
He explained that the approval of the revised development plan had enabled practical work to begin, helping to reverse the sustained decline in Ghana’s crude oil output.
The 30 per cent increase represents an important development for Ghana’s upstream petroleum sector, which has faced challenges associated with declining production from mature oil fields.
The government is seeking to attract additional capital, encourage technological innovation and strengthen cooperation with international oil companies to sustain the recovery and improve the long-term performance of the oil and gas industry.
Kosmos Energy Plans Additional Jubilee Oil Wells
Kosmos Energy has outlined further development plans for the Jubilee field as part of its commitment to increasing production.
According to the company’s August results, the Jubilee partnership was seeking a drilling rig for a campaign involving up to 10 wells between 2027 and 2028, with operations expected to begin in mid-2027.
The Jubilee field recorded gross production averaging approximately 72,000 barrels of oil per day in the second quarter, with the J76 and J77 wells coming online in June and July, respectively.
Kosmos Energy also maintained a group capital expenditure budget of US$350 million for 2026, reflecting its continued investment plans across its operations.
The planned drilling programme is expected to support further development of the Jubilee field, although future production levels will depend on operational performance and investment execution.
Ghana and Kosmos Energy Target Affordable Natural Gas Supply
Beyond increasing crude oil production, the 2025 agreement places significant emphasis on improving natural gas availability for Ghana’s domestic market.
The government is seeking to secure reliable and affordable gas supplies to support thermal power plants, strengthen electricity generation and reduce pressure on the country’s energy supply system.
Kosmos Energy Chief Executive Officer Andy Inglis said the agreement aligned Ghana’s energy priorities with the company’s investment objectives.
According to Mr Inglis, extending the petroleum licences to 2040 provides the long-term certainty needed to invest in new technology and additional field development.
He also highlighted the importance of supplying lower-cost natural gas to Ghana, noting that energy security must be accompanied by affordability for the country and its consumers.
Increased domestic gas production could help Ghana reduce its dependence on more expensive liquid fuels for thermal power generation while supporting industrial activity and economic growth.
Government Seeks More Investment in Ghana’s Oil and Gas Industry
Mr Jinapor said the Jubilee agreement could serve as a model for negotiations with other international petroleum companies as Ghana works to attract investment into its upstream oil and gas sector.
He noted that the government was pursuing mutually beneficial agreements aimed at strengthening investor confidence, improving cooperation and increasing petroleum production.
The minister disclosed that Ghana had existing agreements with Chevron and was engaging other major energy companies, including Shell and CNOOC, to explore additional investment opportunities.
He expressed optimism that the ongoing discussions would contribute to increased capital inflows and renewed activity in the country’s oil and gas industry.
The government is also reviewing the fiscal framework governing petroleum operations to make Ghana a more competitive destination for international oil and gas investment.
Ghana Reviews Petroleum Fiscal Regime to Attract Investors
According to Mr Jinapor, reforms to the country’s petroleum fiscal regime are intended to create a more investor-friendly environment while ensuring that agreements remain beneficial to Ghana.
He indicated that the relevant approvals for the proposed reforms had progressed through the energy and finance ministries, with consideration by Cabinet and Parliament identified as the next steps at the time of his remarks.
The minister also said the government intended to finalise an agreement with Chevron following parliamentary approval.
Additionally, Ghana had held discussions with Petrobras, with negotiations aimed at potentially concluding another investment agreement.
The proposed reforms and ongoing negotiations form part of broader efforts to revitalise Ghana’s upstream petroleum industry, attract new exploration and development capital, and maximise the economic benefits of the country’s oil and natural gas resources.
Outlook for Ghana’s Petroleum Sector
The reported 30 per cent recovery in crude oil production offers a positive development for Ghana’s petroleum industry after several years of declining output.
However, sustaining the improvement will depend on continued investment, successful drilling programmes, efficient field operations and stronger partnerships between the government and international energy companies.
Alongside higher crude oil production, expanding affordable natural gas supplies remains a priority for supporting electricity generation, improving energy security and promoting industrial development.
Ghana’s strategy combines petroleum sector reforms, long-term investment agreements and increased field development to strengthen production, improve investor confidence and support the country’s wider economic and energy objectives.
Source: newsthemegh.com