In a major bid to rescue Ghana's flagging energy sector, President John Dramani Mahama unveiled $3.5 billion in fresh investments aimed at snapping a grueling six-year decline in crude oil output.
Speaking at a ground-breaking ceremony for Phase 2 of the Sentuo Oil Refinery Project in the industrial hub of Tema, Mahama said the capital injection marks a major turning point for the West African nation's energy sector.
The investment package includes $2 billion from partners in the flagship offshore Jubilee field, led by operator Tullow Oil, to drill up to 20 new wells. An additional $1.5 billion will be deployed by Offshore Cape Three Points (OCTP) partners, led by Italy's Eni, for field development and ongoing exploration.
"We have committed upstream players to invest more money to drill new wells to raise the volumes of oil and gas we are producing," Mahama said in a statement released by the presidency.
Ghana, which relies heavily on gold, cocoa, and oil exports, has faced dwindling oil revenues over the last several years due to a lack of aggressive upstream drilling and natural field declines.
Speaking at a ground-breaking ceremony for Phase 2 of the Sentuo Oil Refinery Project in the industrial hub of Tema, Mahama said the capital injection marks a major turning point for the West African nation's energy sector.
The investment package includes $2 billion from partners in the flagship offshore Jubilee field, led by operator Tullow Oil, to drill up to 20 new wells. An additional $1.5 billion will be deployed by Offshore Cape Three Points (OCTP) partners, led by Italy's Eni, for field development and ongoing exploration.
"We have committed upstream players to invest more money to drill new wells to raise the volumes of oil and gas we are producing," Mahama said in a statement released by the presidency.
Ghana, which relies heavily on gold, cocoa, and oil exports, has faced dwindling oil revenues over the last several years due to a lack of aggressive upstream drilling and natural field declines.
State officials noted that measurable output gains have also been registered at the Tweneboa, Enyenra, and Ntomme (TEN) fields, as well as the Sankofa field.
To sustain long-term growth, Mahama stated that the government has initiated the commercialization of the Afina Discovery, a disputed oil field previously frozen in legal deadlock, and ratified a new petroleum exploration agreement in the offshore Tano West basin.
"This expansion is not merely an investment in infrastructure," Mahama said. "It is an investment in Ghana's future, our energy security, and our economic resilience."
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