Mahama Urges Urgent Acceleration of Ghana Oil Production
Ghana’s President, John Mahama, has issued a clarion call for increased oil drilling in Ghana Oil Production. He emphasized that if oil companies fail to ramp up extraction efforts, Ghana may lose the opportunity to benefit from its petroleum reserves before the global transition to renewable energy becomes irreversible.
Speaking at the prestigious Africa CEO Forum in Abidjan, Côte d’Ivoire, on Tuesday, Mahama urged oil investors to accelerate operations in the Ghana energy sector while international demand for crude oil remains strong.
“Oil is in transition. Everybody who has any assets should be pumping like there’s no tomorrow,” Mahama declared.
According to the president, Ghana risks leaving billions of dollars’ worth of oil underground unless swift action is taken to extract and monetize it within the next two decades.
Global Renewable Push Poses Risk to Ghana’s Oil Reserves
As climate goals take center stage globally, many nations are pledging to reduce dependence on fossil fuels. These commitments have placed pressure on oil-rich nations, especially developing economies like Ghana, to act swiftly.
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Mahama captured the urgency by stating:
“I will lay a red carpet to anybody who wants to drill and pump oil because, in the next decade or two, the world would have made a transition to renewables.”
This direct statement aligns with the growing global shift toward clean energy. While Mahama remains committed to renewable development, he believes that maximizing the benefits of Ghana oil production is necessary for national growth in the short term.
Blame on Past Administration for Sectoral Decline
Mahama did not hold back in criticizing the previous government under Nana Akufo-Addo. He accused the former administration of introducing regulatory bottlenecks that stifled progress in the oil industry.
The president claimed that key investors, such as Tullow Oil and ENI, faced avoidable challenges. These setbacks caused massive disinvestment, significantly affecting Ghana oil production between 2019 and 2023.
“ENI was held in contempt and had to move all their expatriate management to Côte d’Ivoire,” Mahama said. “Now they are back and drilling again.”
This statement sheds light on how fragile investor confidence had become. Mahama’s new administration now aims to restore that trust and create a more conducive environment for oil operations.
Drop in Oil Output and Revenue Raises Concerns
Statistics from the Public Interest and Accountability Committee (PIAC) highlight a steady decline in Ghana oil production. In 2023, output dropped to 48.25 million barrels—down significantly from 71.44 million barrels in 2019.
The decline is attributed to reduced investment in new oil wells and regulatory uncertainty. These challenges, Mahama emphasized, must be addressed immediately to prevent further losses.
His administration plans to encourage both local and foreign oil firms to invest more aggressively. By clearing red tape and ensuring policy clarity, Mahama believes the sector can rebound quickly.
Ghana Energy Sector Still Committed to Renewables
While Mahama champions an aggressive push for oil, he remains committed to the country’s clean energy targets. Ghana’s Renewable Energy Act mandates that at least 10% of its total energy supply must come from renewable sources.
“We are not abandoning our clean energy vision,” he clarified. “However, we must also be realistic. The revenue from oil can fund renewable infrastructure and other developmental needs.”
This dual strategy—boosting oil production while supporting green energy—is at the heart of Mahama’s energy policy. The goal is to create a resilient and diversified Ghana energy sector that serves both current and future generations.
Major Players in Ghana’s Oil Industry Returning to Action
Ghana’s key offshore oil assets include the Jubilee Field, TEN Field, and Sankofa Field. These fields involve major stakeholders such as Tullow Oil, Kosmos Energy, PetroSA, and the state-owned Ghana National Petroleum Corporation (GNPC).
Mahama expressed optimism that with restored investor confidence, operations in these fields will expand. The return of major players like ENI signals a renewed sense of stability in Ghana’s oil landscape.
He also reassured potential investors that his administration would provide a business-friendly environment through transparent regulations and efficient bureaucratic processes.
Conclusion: Ghana at an Energy Crossroads
With global momentum toward decarbonization gaining pace, Ghana finds itself at a strategic crossroads. Mahama’s call to fast-track Ghana oil production is not only timely but critical for economic stability.
His administration’s success will depend on how effectively it can balance fossil fuel development with long-term renewable energy goals. By building investor trust and eliminating policy hurdles, Ghana can still harness its oil wealth before the global market shifts away.
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