The Energy, Resources, and Industrials Lead at Deloitte Ghana, Gideon Ayi-Owoo, has made a strong case for the government to ensure policy certainty within the energy sector.

According to him, this will enable Ghana to attract long-term investment, support sustainable economic growth and fully maximise its oil and gas potential.

Addressing the media on the sidelines of the African Oil Week conference, Tax Partner Gideon said a greater policy coherence is critical to unlock investments in the sector.

“Discussions recently have changed very much. Previously, it used to be just around extractives, especially when you are talking of energy. A lot of the investors will tell you, because of the investments and the quantum involved, they need certainty and some practicalities around it,” he said.

Mr Ayi-Owoo continued that achieving this would require a regulatory environment capable of giving investors the certainty needed to commit significant capital to long-term projects.

Value Addition

Mr. Ayi-Owoo who also doubles as the Deputy Lead Energy, Resources and Industrials of Deloitte West Africa said the conversation around Africa’s energy resources had shifted significantly from simply identifying the continent’s vast oil and gas potential to determining how those resources could be converted into wider economic value.

"People will always say we [Africa] has a lot of energy potential, but if you look at the discussion last year, this year, and very often now, it's more about what value do we add to this massive potential that we have.”

He argued that the ultimate objective must be value addition, rather than simply exporting hydrocarbons.

“There are very good examples now, especially on value addition. Everybody is now mentioning Dangote, for example. There is also the cross-country collaboration.”

New Explorations and Collaborations

His comments come as Ghana intensifies efforts to revive its upstream petroleum industry following years of declining production.

The government has secured about $3.5 billion in investment commitments, including $2 billion from Jubilee partners for up to 20 new wells and $1.5 billion from OCTP partners for field development and exploration.

Again, Parliament has also extended the Jubilee and TEN licences to 2040, potentially unlocking up to another $2 billion in investment with the country eying new explorations.

He pointed to the West Africa Gas Pipeline project as an example of regional cooperation and said Ghana must ensure its oil and gas resources provide the feedstock for industrialisation.

“Beyond that, what would it make it so that we have a lot of jobs? They say, well, molecules for not just for export, but for industrialisation, and then industrialisation is where the jobs are. It's where the value is created, and then we make sure that a lot of the revenue stays.”