WHY INVESTORS DO NOT FIND GHANA'S OIL INDUSTRY ATTRACTIVE ANYMORE

Nana Amoasi VII, the Executive Director of the Institute of Energy Security (IES), has expressed concerns about the decreasing interest of international investors in Ghana's oil and gas sector.

(Nana Amoasi VII, the Executive Director of the Institute of Energy Security )

In discussing the state of the petroleum industry, he emphasized key challenges that have hindered exploration and production activities, leading to a steady decline in oil and gas output in recent years.

“The reduction in upstream production is no surprise. Companies are struggling to find new fuel sources, with exploration activities declining due to regulatory challenges and uncertainties,” he stated.

He noted that over the past five years, production has consistently declined as obtaining approvals for exploration and development has become more challenging, adding that "Processes are complicated and approvals are delayed, leaving investors frustrated."

"Today, Investors don't find Ghana's oil field or oil upstream sector attractive anymore, and so for us to have that attractiveness that we had initially, then we should be looking at our policies and our approval processes. This is very key." he indicated.

He highlighted the departure of major players such as ENI, the Italian oil company that was the first to discover oil in Ghana, before also finding resources in Côte d'Ivoire.

“ENI found Côte d'Ivoire to be a haven, as they encountered fewer challenges compared to Ghana,” he said. Today, Côte d'Ivoire is seen as a safer and more attractive destination, with ENI choosing to operate there while only briefly entering Ghana to conduct essential business.”

He called for policy reforms to restore investor confidence, emphasizing that "policy certainty, transparency, and good governance" are essential for revitalizing Ghana’s upstream sector.

He also urged the government to streamline the approval processes to enhance oil and gas production.

The IES Executive Director also criticized political interference in the sector, warning that it drives investors away.

“If we allow political influence to dictate operations, this is what we get. The sector is time-bound; if you delay projects, investors will move to other countries eager for business.”

“To attract investors again, we must ensure clear, transparent, and efficient regulatory processes, free from political interference. Only then can we make Ghana’s oil and gas sector competitive once more,” he said.

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Source: myjoyonline.com