IN an effort to address its severe economic crisis and support its energy transition, Ghana is actively seeking to increase its oil and gas production. The West African nation is making exploration rights available for sale, targeting investors from countries like the United States, China, and India to fortify its oil and gas sectors.
Andrew Kofi Egyapa Mercer, the Deputy Minister at Ghana’s energy ministry, shared his perspective during an interview with Reuters at the Singapore International Energy Week. He emphasised that Ghana’s current economic challenges should not deter potential investors, citing them as temporary hiccups.
‘Post Russia, we have all recognized the need for energy security. And it’s important that we are not caught pants down,’ Mercer stated, referring to Russia’s invasion of Ukraine.
Ghana is actively marketing oil and gas blocks, including new acreages and fields previously held by ExxonMobil. The primary objective is to prevent any of the nation’s energy assets from going unused. Mercer pointed out that international commitments under the Paris Agreement for combatting global warming have not been fully met, making it crucial for Ghana to fund its own energy transition.
Currently, Ghana produces nearly 160,000-170,000 barrels per day (bpd) of crude oil and about 325 million standard cubic feet per day (scfd) of natural gas. Notably, the Sankofa gas field in Ghana, a part of the Offshore Cape Three Points (OCTP), has recently increased gas output from 210 million scfd to 235 million scfd after enhancement programs. The goal is to further elevate this output to 250 million scfd, with expansion plans expected to be submitted to the Ministry of Energy early next year.
In addition, the African Finance Corp has received approval to develop the Pecan field project, set to produce 80,000 bpd of oil. The final investment decision is anticipated in the first quarter of 2024, with production slated to commence between 2025 and 2026.
Mercer disclosed that Ghana is also committed to increasing clean energy in its power generation mix and exporting more electricity to neighbouring countries. Presently, approximately 60 percent of Ghana’s power is generated from natural gas, 5 percent from heavy oil, while the remainder is sourced from hydropower and solar.
As Ghana forges ahead with its oil and gas expansion plans, it not only seeks to address its economic challenges but also actively contributes to global climate efforts by transitioning toward cleaner energy sources.