Minister for Energy and Green Transition, Dr. John Abdulai Jinapor, has revealed that Ghana's oil sector has witnessed a sharp decline in 2025.

According to him, production fell by about 32 percent — from 71.4 million barrels in 2019 to 48.2 million barrels in 2024.

“This downward trend signifies not only a reduction in government revenue from a sector that continues to anchor the GDP, public finances, and foreign exchange earnings, but also a contraction in the value of opportunities and contracts available to indigenous Ghanaian companies — the backbone of our local industry,” Dr. Jinapor said.

The Minister made the remarks when he opened the 2025 Local Content Conference and Exhibition in Takoradi, in the Western Region.

The conference is being held under the theme: “Revitalising Ghana’s Petroleum Exploration and Production Sector: Driving Innovation and Redefining Local Content for a Competitive Energy Economy.”

Dr. Jinapor attributed the decline to regulatory inefficiencies and policy inadequacies, including protracted licensing processes, avoidable legal disputes over field unitisation, frequent changes in fiscal policies, and burdensome tax regimes.

He warned that without decisive, predictable, and strategic policy action, Ghana risks losing further ground in an increasingly competitive global petroleum landscape.

The Energy Ministry, he said, has therefore taken bold steps to end the cycle of repeated extensions, stressing that no contractor or operator would be allowed to hold onto a block without fulfilling its minimum work obligations.

“I have therefore directed the Petroleum Commission to prepare an advisory paper on the matter. Let me assure you, government will not hesitate to terminate inactive petroleum agreements to ensure that our resources are utilised productively for the benefit of the Ghanaian people,” Dr. Jinapor declared.

He further announced that the Ministry had established a Legislative Review Committee to assess the current legal, regulatory, fiscal, and institutional frameworks of the upstream petroleum sector and recommend reforms necessary to make Ghana more competitive and investment-friendly.

According to him, the review aims to attract new exploration investments, encourage reinvestment by existing operators, and enhance recovery from producing fields.

Dr. Jinapor noted that this could include amendments to the Petroleum (Exploration and Production) Act, 2016 (Act 919) and its associated regulations, as well as a review of fiscal terms to attract investment.

He explained that the fiscal regime must be flexible, risk-sensitive, and forward-looking — designed to reward investors who venture into frontier and deep-water basins, including the Eastern/Keta Basin and Ghana’s ultra-deepwater areas.

“We will secure a fair and sustainable share for the nation, while ensuring reasonable returns for investors who take bold, calculated risks. This is our pathway to transforming challenges into opportunities and positioning Ghana as a preferred destination for strategic upstream investment,” the Minister said.

He added that it is the President’s vision for the Ministry to work tirelessly to increase the participation of Ghanaian firms in the oil and gas sector, in order to secure substantial value retention in Ghana.

Dr. Jinapor stressed that petroleum resources must serve not just as a source of fiscal revenue, but as a catalyst for sustainable economic growth — fostering indigenous capacity development and national industrial competitiveness.

Accordingly, he has directed the Petroleum Commission and other agencies to strategically promote the growth of local capabilities, ensuring that indigenous Ghanaian companies thrive in the exploration and development of the country’s petroleum resources.

The Minister reiterated that Ghana was repositioning itself as a world-class investment destination to secure the sustainable development of its petroleum resources for current and future generations.

The Acting Chief Executive Officer of the Petroleum Commission, Victoria Emefa Hardcastle, said the Commission’s revitalisation drive was anchored on three key actions — revitalising, innovating, and redefining — to ensure Ghana remains a competitive and attractive destination for petroleum investment.

She explained that this would require streamlining regulatory processes and fostering a transparent, stable investment environment.

Madam Hardcastle expressed optimism that the outcomes of the two-day conference would drive practical reforms and renewed confidence in Ghana’s oil and gas sector, ultimately leading to increased participation of Ghanaian businesses in the value chain.