The Minority in Parliament has sharply criticized President John Dramani Mahama’s handling of the petroleum sector, accusing his administration of making poor decisions that have contributed to a decline in crude oil production in Ghana.
Dr. Mohammed Amin Adam, former Finance Minister and current member of the Minority, laid out a damning assessment of Mahama’s policies and highlighted the contrast with the measures taken by President Akufo-Addo’s administration.
According to Dr. Adam, President Mahama’s government signed contracts with numerous companies during his first term in office, but many of these companies lacked the technical and financial capacity to effectively carry out oil exploration and production activities.
The result, he argued, has been a decline in crude oil production, particularly in comparison to the performance seen after the Akufo-Addo administration took office in 2017.
Dr. Adam pointed to the fact that under President Mahama’s administration, 13 companies were contracted for oil production. While many of these firms initially appeared to offer potential, a closer examination of their ability to execute oil activities revealed significant shortcomings.
“Most of these companies lacked the necessary technical and financial resources to handle oil exploration effectively. As a result, production levels in the sector saw a noticeable decline.”
Dr. Mohammed Amin Adam, former Finance Minister
Dr. Adam, however, contrasted Mahama’s approach with the measures implemented by President Akufo-Addo’s government.
“When Akufo-Addo’s administration took office in 2017, it quickly set in motion a strategy for aggressive reserve replacement, aimed at boosting oil production and securing Ghana’s oil future.
“Under this strategy, between 2018 and 2022, the Akufo-Addo government oversaw seven significant discoveries of oil and gas, which represented a considerable boost to the nation’s energy resources.”
Dr. Mohammed Amin Adam, former Finance Minister
Dr. Adam acknowledged that the COVID-19 pandemic slowed down some operations, particularly those related to the appraisal and further development of these discoveries.
However, he credited the Akufo-Addo administration for its continued efforts to incentivize exploration companies, including the restoration of lost time for these firms and the provision of amendments to existing frameworks that offered further incentives to industry players.
“The NPP government could not be accused of creating a ‘hostile business climate or excessive political interference,’ as President Mahama has claimed.
“On the contrary, our policies have incentivized exploration, leading to these impressive discoveries.”
Dr. Mohammed Amin Adam, former Finance Minister
Dr. Adam added that the current administration had focused on creating an environment conducive to long-term growth in the sector.
Minority Praises Akufo-Addo’s Successes
The Minority also emphasized the critical role of the Akufo-Addo administration in increasing crude oil production.
Dr. Adam highlighted the addition of the Jubilee South-East field, which began production in September 2023. “This development added 30,000 barrels of oil per day to the Jubilee Field, bringing its total production capacity to 100,000 barrels per day,” he noted.
“Ghana is now better positioned to take advantage of its oil resources, and this is largely due to the strategic measures that have been put in place since 2017.”
Dr. Mohammed Amin Adam, former Finance Minister
The contrast mae between the two administrations is especially significant when looking at the broader economic implications. Oil production plays a critical role in Ghana’s economy, contributing significantly to national revenue, job creation, and industrial growth.
Moreover, the Minority is calling for even more urgent reforms to ensure Ghana continues to benefit from its oil resources.
Dr. Adam suggested that while the Akufo-Addo administration has made significant strides, additional efforts are required to ensure that the sector remains attractive to investors and continues to contribute to national development.
“We must continue to prioritize transparency and efficiency in the petroleum sector.
“This means pushing for better regulatory frameworks, ensuring the sustainability of these oil fields, and expanding our capacity to refine and process the oil domestically.”
Dr. Mohammed Amin Adam, former Finance Minister
The political divide over the management of the oil industry underscores the importance of maintaining a stable and attractive environment for investors, with a focus on sustainability and long-term growth.
As the country moves forward, it will be crucial for the government to ensure that its oil resources are managed wisely, avoiding past mistakes while embracing new development opportunities.
READ ALSO: UNICEF Races to Restore Clean Water in Goma
