The Government of Ghana has secured a $3.5 billion investment to revitalize the country’s oil and gas sector, signing a Memorandum of Understanding (MoU) with the Jubilee/TEN and Offshore Cape Three Points (OCTP) partners.

Under the agreement, the Jubilee/TEN partners will invest $2 billion, while the OCTP partners are set to contribute $1.5 billion to stimulate production and expand reserves.

Mr Patrick Nomo (behind the mic), Dr Steve Manteaw (left) and other dignitaries launching the report. Photo. Ebo Gorman

The announcement was made in Accra by Dr John Abdulai Jinapor, Minister of Energy and Green Transition, during the launch of the 2023 Ghana Extractive Industries Transparency Initiative (GHEITI) Mining and Oil and Gas Reports.

“These investments form part of a broader strategy to address declining oil production, expand reserves, and restore investor confidence in the sector,” Dr Jinapor said in a speech read on his behalf.

He explained that ongoing policy and legislative reforms, including resolving challenges around gas aggregatorship and enhancing regulatory certainty, had attracted renewed interest from major international oil companies. These interventions are expected to sustain the sector’s contribution to the national economy while longer-term reforms are implemented.

Transparency and Accountability in Resource Management

The launch highlighted the importance of transparency and accountability in managing Ghana’s natural resources.

Dr Steve Manteaw, Co-Chair of the GHEITI Multi-Stakeholder Group, emphasized that the initiative empowers citizens to demand accountability from government institutions.

“GHEITI-driven reforms have recovered over $700 million in additional revenue that might otherwise have been lost,” Dr Manteaw noted, underscoring the initiative’s impact on both mining and petroleum policy.

Sector Contributions to the Economy

Mr Patrick Nomo, Chief Director of the Ministry of Finance, reported that the extractive sector contributed about GH¢16.7 billion to domestic revenue in 2023, representing roughly 7% of total government receipts.

He further revealed that transfers from extractive activities to sub-national authorities reached GH¢1.8 billion, supporting infrastructure and local development in mining and petroleum-producing areas.

The sector also generated net foreign exchange inflows of $3.9 billion, helping stabilize Ghana’s balance of payments and exchange rate.

“Compliance in the extractive sector has improved significantly, with over 94% of registered companies submitting returns on time and reconciliation coverage exceeding 97%,” Mr Nomo said.

He stressed that GHEITI reports remain critical tools for fiscal forecasting, national planning, and policy formulation, providing independently verified data to guide decision-making and ensure prudent management of Ghana’s natural resource wealth.