At the Africa CEO Summit in Abidjan, Côte d’Ivoire, President John Dramani Mahama called for intensified oil and gas extraction in Ghana, emphasizing the urgency to capitalize on fossil fuel resources before the global transition to renewable energy renders them obsolete.
He emphasized that the next two decades could mark a turning point for the industry, with fossil fuels gradually making way for clean energy alternatives.
“Oil and gas production is in transition.
“Everybody who has any assets should be pumping like there’s no tomorrow.”
President John Dramani Mahama
He extended an open invitation to investors, saying, “I would lay a red carpet to anybody who wants to drill and pump oil.”
President Mahama underscored the need to fast-track exploration and production, saying that Ghana’s oil and gas sector must take advantage of the current demand before the world shifts entirely to renewable energy sources.
His remarks highlighted the urgency of maintaining production levels to optimize revenue before the anticipated global shift to green energy affects market stability.
Restoring Investor Confidence
Investor concerns had previously led to production declines, with annual output dropping by 7%, largely due to disputes with ENI and other operators.
“ENI had issues with a local company, and government took sides, demanding unitization.
“A dispute arose, leading ENI to relocate its expatriate management to Côte d’Ivoire for years.”
President John Dramani Mahama
Despite these challenges, investor confidence is gradually returning, with new commitments to expand oil and gas production. President Mahama pointed to ongoing efforts to boost output and stabilize the industry.
Reflecting on Ghana’s recent setbacks in the industry, President Mahama cited policy gaps and investor conflicts as contributors to sluggish growth.
He acknowledged that a lack of government prioritization in the oil sector had resulted in disinvestment and disputes, including a tax disagreement with Tullow Oil.
“The environment got a bit toxic. Government did not seem to prioritize the sector, and there was a lot of disinvestments.
“Tullow had tax disputes that led to arbitration, which they won before we came into office.”
President John Dramani Mahama
However, President Mahama assured that efforts are underway to resolve outstanding issues, fostering a more stable investment climate.
He added, “We are sitting with Tullow to resolve the remaining disputes. That’s the way it should go,” stressing the importance of creating a business-friendly environment for energy companies.
Scaling Up Ghana’s Gas Infrastructure
A key element of President Mahama’s vision involves strengthening Ghana’s gas infrastructure, particularly through the Second Gas Stream Project.
“We’re going to build a second gas stream, which would handle more gas coming out of Jubilee.
“The Jubilee partners, Tullow and Kosmos, are putting more gas on stream. Our current plant in Atuabo cannot handle the extra gas.”
President John Dramani Mahama
The additional gas processing capacity is expected to bolster energy reliability and reduce dependence on crude oil imports.
President Mahama confirmed that ENI has resumed drilling operations, and early indications suggest considerable quantities of oil and gas may be discovered.
These efforts will contribute to Ghana’s gas-to-power policy, which aims to eliminate liquid fuel usage in favor of natural gas-powered thermal generation.
President Mahama also revealed that Nigeria has pledged to boost gas supply via the West African Gas Pipeline, reinforcing Ghana’s long-term objective of phasing out crude oil consumption for electricity generation.
This commitment aligns with Ghana’s ambition to transition fully to gas-fired power production, enhancing energy security and reducing costs.
President Mahama’s statements signal a renewed push to revitalize Ghana’s oil and gas industry, foster investor confidence, and accelerate infrastructure development. His call for increased production reflects broader concerns about the future of fossil fuels as renewable energy becomes more economically viable.
As Ghana navigates global energy shifts, Mahama’s emphasis on strategic investments, dispute resolution, and gas infrastructure expansion could position the country as a regional energy hub, securing economic stability and long-term energy sustainability.
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