The Country’s Energy sector is on the brink of collapse, and the Minister for Energy and Green Transition, John Abdulai Jinapor, is sounding the alarm.
Speaking at a roundtable meeting with the Ghana Petroleum Upstream Chamber, Jinapor painted a dire picture of the country’s upstream petroleum sector, citing declining crude oil production, regulatory failures, and diminishing investor confidence.
The statistics are staggering. Crude oil production has dropped by over 30% since 2017, with exploration, appraisal, and development at an all-time low.
The sector’s contribution to Ghana’s foreign exchange exports has also dwindled, from 35% in 2022.
The Minister attributed these setbacks to poor decision-making and opacity in the industry, warning that urgent measures are needed to prevent the sector’s imminent collapse.
But Jinapor is not just crying out for help; he’s also offering solutions.
The Minister announced plans to review the country’s upstream petroleum policies and regulatory framework to ensure fairness, consistency, and transparency.
He stressed the need for predictability in the sector to attract and retain investors, emphasizing that the government is committed to creating an enabling environment for investment.
One area of focus is the transition to gas-powered electricity generation, which Jinapor says could save Ghana $1 billion annually on liquid fuel.
The Minister also assured stakeholders that the government is committed to resolving key industry disputes, including the ongoing ENI unitization issue, which has affected Ghana’s international reputation.
The Ghana Petroleum Upstream Chamber has expressed confidence in Jinapor’s ability to turn the sector around.
The Chamber’s Chief Executive, David Ampofo, assured the Minister of their support and commitment to reforms aimed at addressing pertinent issues in the sector.
