Experts at the recently concluded two-day technical consultative workshop aimed at addressing the declining trend of crude oil production in Ghana are calling for a review and update of fiscal terms in petroleum agreements between Ghana and investors.
According to them, this will make the petroleum sector more attractive to investors and significantly address the decline.
They also called for the development of a transparent framework for licensing and regulatory compliance to build investor confidence.
The workshop was organized by the Public Interest and Accountability Committee (PIAC) to propose sustainable solutions to address key challenges in the upstream petroleum sector.
Speaking at the workshop, the Chair of PIAC, Emerita Professor Elizabeth Ardayfio-Schandorf, stated, “We must also develop a transparent framework for licensing and regulatory compliance to build investor confidence.”
She emphasized the importance of promoting infrastructure development, calling for prioritizing the construction and upgrading of gas processing and transportation infrastructure, along with promoting public-private partnerships to facilitate these developments.
“We must establish partnerships between academic institutions and the industry to foster research and innovation in oil and gas production. Additionally, creating a centralized database accessible to academia will enhance data-driven decision-making,” Emerita Professor Ardayfio-Schandorf added.
On addressing technical and operational challenges, she stated, “Implementing advanced oil recovery techniques and investing in technology for enhanced oil extraction, especially in mature fields, is critical. Regular training and capacity-building workshops for personnel will also help in addressing technical issues more effectively.”
In the broader context of energy transition, she stressed the need for a comprehensive strategy to integrate renewable energy sources with traditional oil production, as this approach would ensure a balanced transition while promoting environmental sustainability in exploration and production practices.
“Reassessing the legal framework surrounding petroleum exploration and production is essential to eliminate ambiguities and enhance clarity. A consultative process involving all stakeholders must be established to develop and implement new regulations and policies,” the Chair of PIAC stated.
Regarding increased funding for exploration activities, Emerita Professor Ardayfio-Schandorf underscored the need to create incentives for financial institutions to invest in exploration despite concerns surrounding the global energy transition. She called for the “development of government-backed funding mechanisms for exploratory activities to attract investment in under-explored areas.”
She further called for the reversal and implementation of the gas master plan and investment in infrastructure for gas distribution to facilitate broader access and utilization across the country.
She stressed the need for improved stakeholder engagement, saying, “Establishing regular forums for dialogue among industry stakeholders, government, and civil society will foster transparency and accountability. This is essential for addressing concerns and sharing insights.”
The PIAC Chair emphasized the importance of collaboration in overcoming the challenges facing Ghana’s oil production.
“Moving forward, Ghana must diversify its economy, sustainably manage its petroleum resources, and promote renewable energy alongside ongoing investments in the upstream oil and gas industry. By following these recommendations, stakeholders can work collaboratively to ensure a sustainable future for the sector and for Ghana,” she explained.
By Jessel Lartey Therson-Cofie
