Mr. Joshua Batsa Narh, the Executive Chairman of the Energy Chamber Ghana and a Director at Wingfield Group, has asserted that Ghana’s upstream petroleum sector requires a strategic overhaul of its risk management and contracting architecture rather than a primary reliance on lowering royalty rates to attract investment as recommended in PIAC’s 2025 report.
Mr. Narh in an interview with The Valutz News, suggests that while fiscal incentives like royalties are part of the equation, they are insufficient on their own to stimulate the sector’s growth.
Instead, the focus must transition toward enhancing the overall investment climate to ensure the country remains competitive in a maturing producing province.
“The real strategic shift Ghana needs is not simply lowering royalties, it is rebalancing risk, speed, and certainty across the upstream investment framework. If that happens, investor appetite returns even without headline fiscal giveaways.”
Mr. Joshua Batsa Narh
Mr. Narh emphasized that Ghana has moved beyond the frontier stage, where low royalty rates sometimes as meager as 1–2% were the primary tools used to attract exploration capital.
As a maturing basin, investors now evaluate opportunities through a more sophisticated lens that prioritizes operational and fiscal stability over headline giveaways.
The current investment decision matrix is driven by a complex interplay of geological upside, fiscal stability, contract predictability, the speed of bureaucratic approvals, and the readiness of infrastructure.
These factors, alongside the certainty of gas commercialization, form the bedrock upon which modern, sustainable upstream investment flows are built.
Restructuring the Contracting Architecture
The path toward salvaging the petroleum sector lies in selectively diversifying Ghana’s contracting architecture rather than pursuing a wholesale replacement of existing models.
While Production Sharing Agreements (PSAs) will continue to serve as the global standard effectively shifting exploration risk to investors while protecting the state from dry-well exposure there is a clear need for greater flexibility.
Mr. Narh argues that incorporating technical service contracts could be particularly effective for managing mature fields, marginal discoveries, and intensive redevelopment or enhanced recovery programs.
By strategically deploying these varied contract structures, Ghana can better align its legal and fiscal framework with the specific needs of different asset types, thereby maximizing value extraction and operational efficiency.
This targeted approach allows the state to maintain revenue participation without necessitating burdensome upfront capital, while simultaneously providing investors with the operational agility required to navigate the technical complexities of a maturing basin.
The Power of Certainty Over Generosity
Experience across the African continent has consistently demonstrated that “certainty beats generosity” when it comes to winning the confidence of global energy investors.
Countries like Angola have successfully reinvigorated their investment flows by focusing on structural improvements: revising marginal-field incentives, accelerating licensing clarity, and streamlining the approval process.
Similarly, Egypt’s success in restoring upstream momentum is largely attributed to the implementation of fast-track payment frameworks and robust gas monetization guarantees.
For Ghana, mirroring these successes requires a commitment to building a predictable and high-speed regulatory environment.
This “rebalanced risk” strategy directly addresses the root causes of the country’s production decline, which Mr. Narh identifies not as a royalty issue, but as a consequence of stagnant exploration activity and the persistent delay of new project sanctions.
By prioritizing administrative efficiency and fiscal consistency, Ghana can create an environment where the perceived risk of investment is lowered, naturally drawing in capital and fostering long-term confidence in the nation’s energy future.
Salvaging the Sector Through Strategic Risk Alignment
Rebalancing risk within the upstream framework acts as a vital mechanism to protect the sector against the volatility of global commodity markets while ensuring the state remains an attractive partner.
A robust, rebalanced framework provides investors with the clarity they need to commit to multi-year capital projects, even during periods of price instability.
By shifting the focus from simple fiscal concessions to structural reforms such as enhancing infrastructure readiness and streamlining environmental and legal approvals Ghana can effectively mitigate the high-risk perception that currently deters potential explorers.
Furthermore, this systematic approach to risk enables the government to better manage the transition to a sustainable energy future, balancing traditional hydrocarbon extraction with the emerging requirements of the green transition.
As the nation seeks to modernize the Tema Oil Refinery and improve the financial health of its banking sector, a stable and predictable upstream framework ensures that revenues are generated efficiently to fund these national priorities.
Ultimately, by fostering an environment of reliability and institutional excellence, Ghana can reclaim its position as a preferred destination for energy investment, securing the resource wealth necessary to drive its broader economic development goals.
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