President John Dramani Mahama has announced that government-led reforms have secured over $3.5 billion in fresh upstream investment commitments aimed at reversing years of declining output in Ghana’s oil and gas sector, with the centrepiece being a major expansion of drilling activity at the Jubilee Fields and the Offshore Cape Three Points (OCTP) project.
According to the President, partners in the Jubilee Field have signed a $2 billion agreement to drill additional wells offshore — described as the first such drilling activity in the area in close to a decade — while energy giant ENI has committed a further $1.5 billion to expand operations at OCTP. Combined, the agreements are expected to support the drilling of up to 20 new wells across the Jubilee and TEN fields, alongside expanded production at OCTP’s Cape Three Points Block 4 contract area.
The investment push comes against the backdrop of a sharp decline in national output, with Ghana’s crude oil production falling from 71.4 million barrels in 2019 to an estimated 36 million barrels in 2025 — close to a 50 percent drop. Government officials say the new wells and expanded operations are designed to reverse that trend, with crude production expected to rise for the first time in nearly six years once the projects come on stream.
President Mahama said the investment forms part of his administration’s broader strategy to strengthen Ghana’s energy sector, improve energy security, attract further investment, and create jobs for Ghanaians across the oil and gas value chain. Beyond the upstream gains, officials say the OCTP expansion is also expected to boost gas supply for power generation, feeding into government’s “Gas-to-Power Transformation Strategy,” which includes plans for a new 1,200-megawatt state-owned thermal plant — a facility that would surpass the installed capacity of the Akosombo Dam.
Tullow Oil Secures Strong Backing For Refinancing Plan As Over 90% Of Noteholders Sign On
Government believes the expanded exploration and production activity will not only secure the country’s long-term energy needs but also create significant opportunities for local businesses and skilled Ghanaian workers within the petroleum value chain. Officials have described the $3.5 billion package as one of the most significant upstream investment commitments in Ghana’s petroleum sector in recent years, with the new wells expected to enhance production efficiency and support sustained economic growth.
The announcement adds to a string of recent energy sector moves under the Mahama administration, including the resumption of crude processing at the Tema Oil Refinery and plans for the Ghana National Petroleum Corporation (GNPC) to begin drilling in the offshore Voltaian Basin later this year — moves government says reinforce Ghana’s ambition to remain among Africa’s leading oil-producing nations.