Ghana’s Minister of Energy and Green Transition, Dr John Abu Jinapor, has revealed that the country’s oil production has seen a sharp decline in 2025, dropping by about 32 percent over the past five years.

Comparing production levels, Dr Jinapor said output fell from 71.4 million barrels in 2019 to 48.2 million barrels in 2024 — a development he described as alarming for a sector that remains a key pillar of Ghana’s economy.

“This downward trend signifies not only reduced government revenue from an industry that anchors our GDP, public finances, and foreign exchange earnings, but also a contraction in opportunities and contracts available to Indigenous Ghanaian companies — the backbone of our local industry,” he stated.

Dr Jinapor made the remarks when he opened the 2025 Local Content Conference and Exhibition in Takoradi, Western Region, held under the theme “Revitalising Ghana’s Petroleum Exploration and Production Sector: Driving Innovation and Redefining Local Content for a Competitive Energy Economy.”

The Minister attributed the slump to several factors, including regulatory inefficiencies, policy inconsistencies, protracted licensing procedures, unnecessary legal disputes over field unitisation, and a burdensome tax regime.

He warned that without decisive and predictable policy interventions, Ghana risked losing further ground in the increasingly competitive global petroleum market.

To reverse the decline, Dr Jinapor said the Ministry of Energy had taken firm steps to ensure that no contractor or operator holds onto a petroleum block without fulfilling its minimum work obligations.

“I have directed the Petroleum Commission to prepare an advisory paper on the issue. The government will not hesitate to terminate inactive petroleum agreements to ensure our resources are used productively for the benefit of Ghanaians,” he said.

He announced that a Legislative Review Committee had been established to assess the legal, regulatory, fiscal, and institutional frameworks governing the upstream petroleum sector. The committee will propose reforms aimed at making Ghana’s oil industry more competitive and investor-friendly.

According to him, potential reforms may include amendments to the Petroleum (Exploration and Production) Act, 2016 (Act 919) and a review of fiscal terms to attract fresh investment.

“The fiscal regime must be flexible, risk-sensitive, and forward-looking — one that rewards investors who venture into frontier and deep-water basins such as the Eastern/Keta Basin and our ultra-deepwater areas,” he added.

Dr Jinapor reaffirmed President Akufo-Addo’s vision of increasing Ghanaian participation in the oil and gas sector to ensure greater value retention within the country.

“Petroleum resources must serve not only as a source of fiscal revenue but also as a catalyst for sustainable economic growth, fostering indigenous capacity development and industrial competitiveness,” he said.

He directed the Petroleum Commission and relevant agencies to promote the growth of local capabilities and ensure that Ghanaian companies play a stronger role in exploration and production activities.

Acting Chief Executive Officer of the Petroleum Commission, Madam Victoria Emefa Hardcastle, said the Commission’s revitalisation agenda was built on three key pillars — revitalising, innovating, and redefining — to keep Ghana competitive and attractive to investors.

She emphasised that achieving this goal would require streamlined regulatory processes and a transparent, stable investment environment.

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