MAHAMA CALLS FOR OIL INVESTMENT AS PRODUCTION DECLINES

As the global momentum toward decarbonization continues, Ghana is appealing to investors to ramp up oil production in a bid to prevent its fossil fuel assets from becoming obsolete.

Speaking at the Africa CEO Forum in Abidjan, Ivory Coast, President John Mahama stressed the urgency of reversing the country's declining oil output by attracting fresh investment. Despite reaffirming Ghana's dedication to clean energy targets, he made a strong case for reviving oil exploration.

“Oil is undergoing a transitional phase, and those with reserves should maximize output,” Mahama said. “We’re laying out the red carpet for any investor willing to drill.”

Steady Decline in Oil Output

Over the past five years, Ghana's oil production has consistently decreased due to a lack of investment in exploration and new field development. Data from the Public Interest and Accountability Committee (PIAC) shows production dropped to 48.3 million barrels in 2024, slightly below 48.2 million barrels in 2023, and significantly lower than the 2019 peak of 71.4 million barrels.

Mahama blamed the decline on regulatory uncertainty, which had driven away key investors. He cited the example of Italian energy giant ENI, which temporarily relocated its leadership to Ivory Coast amid legal challenges. “Now they’re back and drilling again,” he noted.

Global Context and Dual Energy Goals

Mahama’s appeal reflects a broader trend among oil-producing countries, including recent U.S. efforts to ramp up domestic oil supply. OPEC has also increased output, which has contributed to a 13% drop in Brent crude prices this year, now hovering around $65.3 per barrel according to Bloomberg.

While calling for more oil development, Mahama emphasized that Ghana remains committed to renewable energy. Under the Renewable Energy Act, at least 10% of Ghana’s energy must come from renewable sources.

Elected in December, Mahama has promised to revive the economy, which is currently grappling with debt and a high cost of living. Reflecting on previous government actions, he remarked, “The environment became unfriendly to investment. The sector was not prioritized.”

Source: africa.businessinsider.com

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