Government to cancel inactive Petroleum agreements — Energy Minister warns

The Minister of Energy, Dr John Abu Jinapor, has announced that the government will soon terminate all inactive petroleum agreements that have failed to meet their minimum work obligations within allocated exploration blocks.

He said while the government is implementing reforms to make Ghana’s upstream petroleum sector more attractive to investors, it will not tolerate companies that continue to hold exploration rights without meaningful activity.

Dr Jinapor made this known at the opening of the 2025 Petroleum Local Content Conference and Exhibition in Takoradi on Tuesday, November 4.

He emphasised that Ghana’s local content framework is designed to thrive through productive investor partnerships, adding that firms that have “hijacked” petroleum blocks without progress will have their contracts revoked.

The three-day conference, themed “Revitalising Ghana’s Petroleum Exploration and Production Sector: Driving Innovation and Redefined Local Content for a Competitive Energy Economy,” has brought together key industry players, policymakers, and investors from over 25 countries. Participants are discussing strategies to make Ghana’s oil and gas industry more competitive and beneficial to both investors and the national economy.

Dr Jinapor attributed the recent decline in Ghana’s petroleum output to regulatory inefficiencies, delays in licensing processes, and other structural challenges in previous years.

He revealed that these setbacks have contributed to a 25 percent drop in production and a 50 percent reduction in government revenue, weakening investor confidence in the sector.

However, he expressed optimism that recent reforms and renewed regulatory discipline will help restore investor trust and drive sustainable growth in the upstream industry.s

The Acting Chief Executive Officer of the Petroleum Commission, Madam Emeafa Hardcastle, said the Commission has begun implementing measures to make Ghana’s upstream sector more business-friendly and competitive.

She noted that the Commission is redefining local content and participation policies to promote deeper collaboration between local and international companies — with a focus on in-country spending and value creation, rather than merely indigenous equity ownership.

According to her, Ghana’s new local content strategy seeks to enhance domestic value addition across the petroleum value chain, ensuring that the industry benefits the wider economy regardless of nationality.

Madam Hardcastle also disclosed that Ghana is on the verge of signing a new petroleum agreement with Shell, signalling renewed investor confidence in the sector.