Concerns are mounting among stakeholders in Ghana’s extractive sector over the country’s waning appeal to investors in the upstream petroleum industry.

Despite Ghana’s strong history in oil exploration and production, regulatory challenges and operational inefficiencies have deterred new petroleum agreements, raising alarms about the country’s future as a competitive investment destination.

Dr. Steve Manteaw, Co-chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), has attributed the declining investor confidence to a mix of regulatory, operational, and fiscal obstacles that require urgent policy intervention.

“Ghana is not an attractive investment destination, and that is why we have not signed any new contracts.
“Every now and then, we are at international arbitration against one IOC [International Oil Company] or the other. If you look at our fiscal regime, we need to do something about it.”
Dr. Steve Manteaw, Co-chair of the Ghana Extractive Industries Transparency Initiative (GHEITI)

He emphasized that frequent disputes with international oil companies (IOCs) have made Ghana a less desirable market for global investors.

Arbitration cases signal an unstable investment climate, discouraging multinational corporations from pursuing new oil exploration opportunities in the country.

Dr. Manteaw expressed strong concerns over Ghana’s lack of new petroleum agreements in recent years, pointing to systemic issues within the country’s regulatory framework.

The concerns raised by stakeholders come at a time when Ghana’s crude oil production has steadily declined, falling from a peak of 71.44 million barrels in 2019 to just 48.25 million barrels in 2024.

This five-year downward trend indicates structural inefficiencies that are further limiting Ghana’s ability to maintain output levels and attract fresh capital inflows.

Dr. Manteaw referenced the exit of ExxonMobil, highlighting that the oil giant’s decision to leave Ghana was tied to fundamental problems with the country’s block sizes and data quality.

“When ExxonMobil was exiting, they said our block sizes are too small, data quality too poor… what have we done about it?
“And then we take money, go around the world looking for investors, wasting the money. They won’t come. Let’s stay at home and fix the problems.”
Dr. Steve Manteaw, Co-chair of the Ghana Extractive Industries Transparency Initiative (GHEITI)

ExxonMobil’s retreat underscores Ghana’s failure to implement reforms that would make its upstream oil sector more attractive to global players.

The inefficiencies in geological data quality and oil block structuring have made it increasingly difficult for firms to justify investments in Ghana over rival markets.

Missed Opportunities: Ghana vs. Côte d’Ivoire

Dr. Manteaw pointed to Ghana’s slower development compared to neighboring Côte d’Ivoire, citing ENI’s exploration projects as an example of Ghana’s missed opportunities.

“ENI made a discovery in Ghana before they made another discovery in Côte d’Ivoire.
“Now they are producing in Côte d’Ivoire, and we are still developing.”
Dr. Steve Manteaw, Co-chair of the Ghana Extractive Industries Transparency Initiative (GHEITI)

Côte d’Ivoire’s ability to expedite petroleum production ahead of Ghana highlights a major issue: Ghana’s delayed project execution is costing the country valuable investor interest and revenue streams.

While Côte d’Ivoire has already begun production, Ghana remains behind in fully capitalizing on its own discoveries.

Dr. Manteaw urged policymakers to stop relying on international investment roadshows and instead focus on internal reforms to improve Ghana’s extractive sector.

“There’s a reason we are not attracting investors. We need to stay at home and fix the problems.”
Dr. Steve Manteaw, Co-chair of the Ghana Extractive Industries Transparency Initiative (GHEITI)

While Ghana still holds vast petroleum reserves, concerns over policy stagnation and operational inefficiencies continue to deter new entrants into the sector.

Without meaningful regulatory and fiscal adjustments, Ghana risks falling further behind regional competitors, such as Côte d’Ivoire, in securing global oil investments.

Industry analysts suggest that if Ghana successfully implements reforms, there is potential to reverse the current trend and regain investor confidence in its upstream oil industry.

However, unless urgent policy measures are taken, the country could face further declines in crude oil production and foreign direct investment.

The extractive sector remains a key pillar of Ghana’s economy, but without swift intervention, the country’s long-term prospects as a regional oil powerhouse could diminish, leaving it increasingly reliant on imported petroleum products rather than benefiting from its own natural resources.