Ghana is actively exploring the sale of exploration rights for more oil and gas blocks to strengthen its oil and gas industry. This tactical manoeuvre aims to make the most of its priceless fossil fuel resources and provide much-needed funds to speed up the nation’s transition to cleaner energy sources.
The announcement was made by Andrew Kofi Egyapa Mercer, the Deputy Minister at Ghana’s Ministry of Energy, during an interview at the Singapore International Energy Week.
Ghana’s current economic crisis, one of the most severe in recent memory, has prompted this initiative to seek investors from countries like the United States, China, and India for its oil and gas industries.
Mercer emphasized the importance of not letting temporary economic setbacks deter investors, noting that Ghana’s energy security remains a priority, especially in the wake of global events such as Russia’s invasion of Ukraine.
Ghana’s plan includes the marketing of both new oil and gas acreages as well as fields relinquished by ExxonMobil. Mercer stressed that the nation intends to prevent any of its valuable assets from going unused. He also alluded to the unfulfilled commitments made by Western countries under international agreements like the Paris Agreement to combat global warming, underscoring the need for Ghana to fund its energy transition independently.
At present, Ghana’s daily crude oil production stands at 160,000-170,000 barrels, along with approximately 325 million standard cubic feet per day of natural gas. Notably, the Sankofa gas field, a significant component of the Offshore Cape Three Points (OCTP), has successfully increased its gas output from 210 million scfd to 235 million scfd through enhancement programs. The goal is to further boost this output to 250 million scfd, with expansion plans slated for submission to the Ministry of Energy in early 2024.
African Finance Corp has obtained approval to proceed with the Pecan field project, which is expected to yield 80,000 barrels per day of oil. The final investment decision for this project is anticipated in the first quarter of 2024, with production slated to commence between 2025 and 2026.
Ghana is actively exploring ways to enhance its clean energy production and aims to export surplus electricity to neighbouring nations. Presently, approximately 60% of the country’s power is generated from natural gas, while 5% comes from heavy oil, with the remainder sourced from hydropower and solar energy.