Ghana’s crude oil output rebounds 30% after five-year decline

Ghana’s crude oil production has increased by approximately 30% in 2026, reversing five consecutive years of decline, Minister for Energy and Green Transition John Abdulai Jinapor has announced.

The recovery follows renewed investment in the country’s upstream petroleum sector, including a $2 billion memorandum of understanding signed with Kosmos Energy in 2025 to extend the Jubilee and Tweneboa-Enyenra-Ntomme (TEN) licences to 2040.

Speaking at African Energy Week in Cape Town, South Africa, Mr Jinapor described the increase as a significant turnaround in Ghana’s oil production performance.

“We have seen a continued systematic decline in oil output over the past five years. But this year, I am happy to announce that oil production has increased by about 30%,” he said.

The improvement comes as the government intensifies efforts to attract investment, expand crude oil production and secure more affordable natural gas for domestic electricity generation.

Following the licence extensions, the government approved an amended development plan for the Jubilee Field, covering up to 20 additional wells.

The programme is expected to support increased oil production while strengthening Ghana’s domestic gas supply.

Kosmos Energy’s August results indicated that partners in the Jubilee Field were seeking a drilling rig for a campaign involving up to 10 wells between 2027 and 2028. Drilling operations are expected to begin in mid-2027.

The Jubilee Field recorded average gross production of approximately 72,000 barrels of oil per day in the second quarter of 2026.

The J76 and J77 wells also came online in June and July, respectively, as part of ongoing efforts to sustain production.

Kosmos Energy has maintained its 2026 capital expenditure budget at $350 million, signalling continued investment in its operations in Ghana.

Kosmos Energy Chief Executive Officer Andy Inglis said the extension of the petroleum licences had strengthened the company’s confidence to invest further in the Jubilee Field, including through the deployment of technology.

He also highlighted the importance of supplying natural gas to support Ghana’s energy security and affordability objectives.

“As we deal with energy security, it also comes down to energy affordability. We agreed to supply low-cost gas to the country,” Mr Inglis said.

Affordable natural gas is important to Ghana’s electricity generation sector, where reliable fuel supplies can help support power production and reduce cost pressures.

The government’s renewed focus on upstream investment is therefore aimed not only at increasing crude oil output but also at improving the availability of gas for domestic use.

Beyond expanding existing oilfields, the government is pursuing reforms to Ghana’s upstream petroleum fiscal regime to attract new investment and sustain production over the long term.

Mr Jinapor said the proposed changes were intended to make the country’s petroleum sector more competitive and investor-friendly.

He disclosed that the Ministers for Energy and Finance had approved the proposed reforms, which are expected to proceed to Cabinet before being presented to Parliament.

The minister also indicated that Ghana would sign an agreement with Chevron after parliamentary approval.

The proposed agreement forms part of the government’s broader efforts to bring additional international oil companies into Ghana’s upstream petroleum industry.

Mr Jinapor further disclosed that the government was holding discussions with several international energy companies, including Shell, China National Offshore Oil Corporation (CNOOC) and Petrobras.

The engagements are intended to attract additional investment, expand exploration and development activities, and strengthen Ghana’s position as an investment destination for the global petroleum industry.

The government’s strategy combines investment in existing fields, the development of additional wells, efforts to secure affordable natural gas and proposed fiscal reforms to reverse declining production and support the long-term sustainability of the sector.

The reported 30% increase in crude oil production marks a positive development for Ghana’s upstream petroleum industry as the country seeks to maximise the value of its oil and gas resources.