Speaking at the Africa CEO Forum, Ghana's President John Mahama made an urgent appeal to international investors to speed up the country's oil production, before the global transition to renewable energies makes this resource less attractive. "Oil is in transition. All those with assets must pump like there's no tomorrow", he declared, underlining the urgent need to step up drilling to prevent Ghana's reserves from going untapped.
John Mahama has promised a warm welcome to investors ready to embark on oil development. "I will roll out the red carpet to anyone who wants to drill and produce oil, because in one or two decades, the world will have switched to renewable energies", he said. This statement comes at a time when Ghana's oil production is declining sharply, from 71.44 million barrels in 2019 to 48.25 million in 2023. According to the President, this decline can be explained by a reduction in investment in new wells, exacerbated by regulatory uncertainties under the previous administration.
The President pointed the finger at the policies of his predecessor, Nana Akufo-Addo, which he accused of having slowed down oil exploration. In particular, he referred to conflicts with major players such as Tullow Oil, which won an arbitration case against the government, and ENI, whose expatriate management has been temporarily transferred to Côte d'Ivoire. "Production has fallen by 7% a year", Mr Mahama lamented, while welcoming the return of ENI to the country.
Ghana has significant offshore deposits, in particular the Jubilee field, operated by Tullow Oil, as well as the TEN and Sankofa fields, where companies such as Kosmos Energy and PetroSA operate. These resources represent a major economic opportunity, but their exploitation must be accelerated to remain competitive in a changing oil market.
While calling for increased oil production, John Mahama reaffirmed Ghana's commitment to the energy transition. The country has adopted a law aimed at incorporating 10% renewable energy into its energy mix, a target that is still a long way from being achieved. "I'm ashamed to say that only 2.71% comes from renewables, mainly solar", he admitted. The President is betting on two things: maximising oil revenues in the short term while laying the foundations for a sustainable energy future.
John Mahama's call comes against a global backdrop in which demand for oil could decline in the face of the rise of clean energy. By opening its doors wide to investors and promising to remove regulatory obstacles, Ghana is seeking to capitalise on its oil resources before it is too late. It remains to be seen whether this impetus will revive a flagging industry and reconcile these ambitions with the imperatives of the energy transition.
