Upstream oil investment stalled since 2018 – PIAC

By Praisebell Rosemond Larbi

Ghana’s upstream petroleum sector continues to face significant investment stagnation, with no new Petroleum Agreement (PA) signed since 2018, according to the 2025 Semi-Annual Report of the Public Interest and Accountability Committee (PIAC).

The report paints a worrying picture of dwindling exploration and production activities, noting that the industry’s attractiveness to new investors has weakened in recent years. PIAC attributed the slowdown partly to regulatory uncertainties, global energy transition pressures, and reduced exploration appetite by international oil companies (IOCs).

During the period under review, January to June 2025, the Committee reported that drilling and completion operations on the Jubilee Field were minimal. Only one well was drilled on the field, which is currently being completed.

Similarly, on the Tweneboa-Enyenra-Ntomme (TEN) Field, operated by Tullow Ghana, there was no drilling or completion activity during the first half of 2025. This marks a continued lull in the TEN operations, which have been facing declining output and rising operational costs.

In contrast, some activity was observed on the Sankofa-Gye Nyame (SGN) Field, operated by Eni Ghana, where the company undertook drilling and completion works by sidetracking the existing SNKE-1X ST oil producer well.

This was done after obtaining approval from the Minister for Energy and Green Transition to amend the OCTP Integrated Project’s Plan of Development (PoD).

According to the report, the amendment was necessary to relocate the well for better optimisation. Eni’s operations involved de-completion and abandonment of the original hole, drilling of a pilot hole to design the drain hole trajectory, and the drilling and completion of a sidetrack drain hole using the open-hole gravel pack technique.

PIAC also highlighted that Pecan Energies’ Plan of Development, which was approved in June 2023, has yet to progress to the Final Investment Decision (FID) stage.

Although preparatory works for phased development have begun, the delay in FID continues to stall actual field development activities.

Voltarian Basin Project

The Petroleum Commission (PC) reported that Phase IV of the Ghana National Petroleum Corporation (GNPC)’s 2D seismic acquisition programme, an infill campaign, was conducted between March 2023 and April 2024.

The phase, divided into Area A and Area B, aimed to improve geological understanding of the Voltarian Basin, reduce data gaps, and enhance exploration prospects.

According to the Ministry of Energy and Green Transition, ongoing desktop studies are being conducted on available blocks, while upstream petroleum laws are under review to align with the Onshore Petroleum Exploration and Production Policy, under which exploration licence agreements were signed.

Despite these limited exploratory efforts, PIAC observed that no significant progress has been made in attracting fresh investment into Ghana’s petroleum sector. Several offshore blocks remain idle, with little or no exploration work being carried out, even as the country seeks to diversify energy sources amid the global transition to renewables.

The 2025 Semi-Annual Report, covering January to June 2025, also reviewed key aspects of petroleum revenue management, including production volumes, liftings, and total revenues accrued to the State.

It assessed allocations and utilisation of the Annual Budget Funding Amount (ABFA), as well as the management of the Ghana Petroleum Funds, specifically the Ghana Stabilisation Fund (GSF) and the Ghana Heritage Fund (GHF).

PIAC reiterated the urgent need for Ghana to reinvigorate upstream exploration through competitive licensing rounds, regulatory clarity, and incentives that make the country more attractive to global investors.

It warned that without renewed exploration and field development, Ghana risks a decline in crude oil output, with serious implications for revenue generation and energy security.

While some exploratory activities were recorded on a few blocks during the first half of 2025, PIAC noted that many others remain dormant, underscoring the urgent need for policy interventions to revitalise the sector and sustain petroleum revenues for national development.