Ghana’s crude oil production has increased by approximately 30% in 2026, reversing five consecutive years of declining output, according to the Minister for Energy and Green Transition, John Abdulai Jinapor.
The recovery marks a significant turnaround for Ghana’s upstream petroleum industry as the government intensifies efforts to attract foreign investment, expand oil production and improve access to affordable natural gas for electricity generation.
Speaking at African Energy Week in Cape Town, South Africa, Mr Jinapor said the latest production figures reflected renewed investment and efforts to strengthen the country’s oil and gas sector.
He explained that Ghana had experienced a sustained decline in crude oil production over the previous five years but had now recorded a substantial increase in output.
Kosmos Energy Investment Boosts Ghana’s Oil Production
The increase in crude oil production follows renewed investment in Ghana’s upstream petroleum sector, including a US$2 billion memorandum of understanding signed with Kosmos Energy in 2025.
The agreement supported the extension of the Jubilee and Tweneboa-Enyenra-Ntomme (TEN) petroleum licences to 2040, providing a longer investment horizon for the development of the country’s offshore oil fields.
The government subsequently approved an amended Jubilee field development plan covering up to 20 additional wells. The expansion is expected to support higher oil production and strengthen natural gas supplies for domestic consumption.
The licence extensions are also expected to encourage further investment in exploration, drilling technology and field development.
Jubilee Oil Field Records Strong Production Activity
Kosmos Energy’s operating updates have highlighted continued development activities at the Jubilee oil field, one of Ghana’s major offshore petroleum assets.
The field recorded average gross production of approximately 72,000 barrels of oil per day in the second quarter of 2026.
The J76 and J77 wells were brought online in June and July, respectively, as part of efforts to sustain production and improve field performance.
In its August results, Kosmos Energy indicated that the Jubilee partners were 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 company has also maintained its 2026 capital expenditure budget at US$350 million, reflecting continued investment in its operations.
These activities could help support Ghana’s oil production recovery while strengthening the long-term contribution of the petroleum industry to the national economy.
Ghana Seeks Affordable Natural Gas for Electricity Generation
Beyond increasing crude oil output, the government is prioritising the supply of affordable natural gas to support domestic electricity generation and improve energy security.
Kosmos Energy Chief Executive Officer Andy Inglis said the extension of the petroleum licences had strengthened the company’s confidence to invest in the Jubilee field, including the use of technology to improve operations.
He also highlighted the importance of supplying competitively priced gas to Ghana as the country addresses both energy security and affordability.
Reliable and affordable natural gas supplies are important to Ghana’s power sector because gas-fired generation contributes to electricity production for households, businesses and industries.
Increasing domestic gas availability could also help reduce supply constraints and support the country’s broader economic and industrial development objectives.
Government Plans Petroleum Fiscal Reforms to Attract Investors
The Minister for Energy and Green Transition said the government was pursuing reforms to Ghana’s upstream petroleum fiscal regime to make the sector more competitive and attractive to international investors.
The proposed changes are intended to encourage new investment, support further exploration and development, and sustain crude oil production over the long term.
According to Mr Jinapor, the energy and finance ministers have approved the proposed reforms, which are expected to proceed to Cabinet and subsequently Parliament for consideration.
The government believes that a more competitive fiscal framework could encourage petroleum companies to commit additional capital to Ghana’s oil and gas industry.
Ghana Eyes Chevron Deal and New International Oil Investments
Ghana is also pursuing additional partnerships with international energy companies as part of efforts to expand investment in the petroleum sector.
Mr Jinapor indicated that Ghana would sign an agreement with Chevron following parliamentary approval.
The government is also holding discussions with Shell, CNOOC and Petrobras to attract more international oil companies and broaden participation in the country’s upstream petroleum industry.
Bringing additional investors into the sector could support exploration, technology transfer, employment opportunities and the development of new oil and gas resources.
Ghana’s Oil Sector Recovery and Economic Outlook
The reported 30% increase in crude oil production represents an important development for Ghana’s petroleum industry after several years of declining output.
However, sustaining the recovery will depend on continued investment, successful drilling programmes, effective regulation and the timely implementation of the proposed petroleum sector reforms.
With the Jubilee and TEN licence extensions, additional well development and negotiations with international energy companies, the government is seeking to establish a stronger foundation for long-term oil production and domestic gas supply.
The outcome of these initiatives will be important for Ghana’s energy security, industrial growth, government revenue and the future competitiveness of its oil and gas industry.
Source: newsthemegh.com