An interview with -David Ampofo – CEO of the Ghana Upstream Petroleum Chamber
Q: How would you describe the state of the country’s upstream oil and gas industry under the new administration?
A: They have certainly struck the right tone. The year started with the resolution of some long-standing operational and arbitration issues from previous years; issues that distracted the oil and gas companies from focusing on their core business of exploring for and producing oil and gas.
It is such a relief to have some critical issues behind us. What lies ahead will be determined by how responsive government continues to stay with the issues and conduct her business. We are happy to see an increased collaboration between the industry and the government. The new catchphrase is ‘Ghana is open for business’.
Q: Can you describe current ongoing developments in the industry?
A: Let us begin with our current operators who are key to immediate revenue. The three producing fields, Jubilee, TEN and Sankofa Gye Nyame, are what we have currently.
First, Jubilee and TEN, where the partners are Tullow, Kosmos, Petro SA, Explorco and GNPC. They have recently announced that they are committed to invest $2billion, to drill up to 20 wells between now and 2040. They are starting the drilling campaign this month with two wells using the Noble Venturer drillship and between four to six wells in 2026.
We need to find more oil as quickly as possible and reverse the declining trend. The Jubilee partners are keen to explore near fields by embarking on Infrastructure Led Exploration. They are in early discussion with government on the terms for this additional near field exploration.
With the TEN field, the partners view it more as a gas field than an oil field. The delivery of indigenous gas would be paramount for the countrys domestic use, as opposed to the importation of crude oil for power consumption. They are in discussion with government to settle on a commercial framework that would be mutually beneficial for all parties.
Then, there is the Sankofa Gye Nyame field where ENI, VITOL and GNPC are partners. As you already know, ENI is among the world’s major oil and gas companies and can make a significant difference under the right circumstances. They have already made several discoveries that require further work in order to deliver more oil and gas.
They too have indicated preparations to resume drilling this year. Eni is bringing the Saipem Deep Value Driller, an ultra deep water drillship to Ghana to undertake drilling activities to boost oil production in its production area. Eni also plans to increase gas supply to the country from 245 million standard cubic feet to 270 million, from August 2025, to support with power generation. This will save the country from buying expensive crude oil.
In the case of the non-producing operators, Pecan Energies, formerly Aker, stands out as the most likely to see production in the near future. The government is working with them to make sure a long-awaited Final Investment Decision is achieved so that development and production can begin. This will mean a lot for the country.
There are several other companies involved in exploration that include Heritage, Omni and EcoAtlantic and we are hopeful that they will all complete their drilling programs. The flexibility government shows them, will be key.
Springfield is also gearing up. The Petroluem Commission and the Ministry are continuing to engage with them on their recently concluded appraisal works.
We must not forget GNPC when we talk about current industry developments. GNPC is preparing itself to drill in the onshore Voltain basin. They have a new CEO with a plan to use cutting edge technology to enhance exploration and production. It’s no longer just about being a partner in the business that others operate. It is about operating their own exploration and production business. I’m sure we are going to be hearing more and more about GNPC Explorco.
All in all, the prospects are bright but we all just need to do the things we say and stay focused on the big picture. We must revitalize exploration and address the decline in production especially in mature fields, and encourage investment in underexplored areas.
Q: How supportive would you say the regulators are to the growth of industry?
A: Our engagement with the new CEO of the Petroleum Commission has been very positive. She is overseeing important changes to the fiscal regime that are good for the industry’s growth. We are determined to give her all the support she needs to achieve her objectives.
The Ghana Revenue Authority is the other major player. We have met with the new GRA Commissioner and his team and made progress on several matters. They have been very responsive. Unfortunately, there are still some tax disputes that really ought to be settled before they become bigger and more intractable than they need to.
We do not want highly publicized legal disputes undermining our recent efforts to restore the image of the country as an investor friendly oil and gas investment destination. I hope the new air of openness and cooperation leads to speedy and not so costly resolutions of issues.
Q: What do you consider as important next steps for going forward?
A: We have met with Minister Jinapor and he has demonstrated a resolve to make things happen. His speech at the recently concluded Offshore Technology Conference in Houston sent a clear signal that Ghana is once again open for business. The government is keen but things are not firmed up yet. We have to make the right choices. The environment must be right for you to be open for business.
The Minister has been on the front foot. He has recently indicated that several other companies are knocking at the door. We hope the discussions are productive and lead to something. We hope the right policies will continue to be put in place to attract investors. Our problem has always been with the way we do business and if we can get that right, we will go far. We have to get our business environment right.
We must provide as much support as possible to those who are already here and there must be a concerted effort to attract the major oil companies if we are to realize the full benefit of this resource. It is good to know that several of these majors are knocking on the door but we must be ready.
By the second half of the year we should have a sense of how the newly incentivized environment is beginning to look. The Chamber has a Ghana Day plugged into this year’s Africa Oil Week, which comes on in Accra between the 15th and 18th of September. It will be a good time to assess where we are as an industry.
