By: Desmond Cudjoe
Urgent calls to revitalize Ghana’s Petroleum Exploration and Production (E&P) sector dominated the opening of the 2025 Annual Local Content Conference and Exhibition in Takoradi with leaders warning that the sector’s decline is directly stifling regional development and local business growth.
High-level government officials, including the Minister for Energy and Green Transition,Dr John Abdulai Jinapor, the Western Regional Minister, Mr Joseph Nelson and the CEO of the Petroleum Commission, Ms Victoria Emeafa Hardcastle, outlined a stark reality: when the national oil industry slows, the Western Region, as the sector’s physical base, feels the immediate economic shock.
The conference, themed, “Revitalising Ghana’s Petroleum Exploration and Production Sector: Driving Innovation and Redefining Local Content for a Competitive Energy Economy,” served as a platform for a candid assessment of the challenges and a renewed commitment to action.
A Sector in Decline: The Sobering Numbers
The scale of the challenge was detailed by the Minister of Energy and Green Transition, Dr. John Abdulai Jinapor, who revealed a “sobering story” of decline. He reported that between 2019 and 2025, Ghana’s crude oil production has fallen sharply by about 32%, from 71.4 million barrels to 48.2 million barrels.
“This downward trend… signifies not only a reduction in government revenue… but also a contraction in the value of opportunities and contracts available to Indigenous Ghanaian companies, the backbone of our local industry participation,” Dr. Jinapor said.
He attributed the decline to a combination of factors, including regulatory inefficiencies, protracted licensing processes, ambiguous policies, and a burdensome tax regime. He also pointed to “avoidable and unnecessary legal disputes,” which have created an unpredictable business environment.
A Three-Pronged Action Plan: Revitalize, Innovate, Redefine
Dr Jinapor therefore announced a series of policy actions aimed at reversing the trend:
1. Streamlining Regulation and Licensing: The government committed to resolving long-standing disputes and ensuring transparent, expeditious licensing to attract investment, particularly into new frontiers like the Accra-Keta and Voltaian Basins and the ultra-deep waters of the Tano Basin.
2. Clamping Down on Inactivity: In a significant move, Dr. Jinapor announced he has directed the Petroleum Commission to prepare an advisory paper on terminating inactive petroleum agreements. “Government will not hesitate to terminate inactive petroleum agreements to ensure that our resources are utilised productively,” he declared.
3. Comprehensive Legislative Review: A Legislative Review Committee has been established to assess and overhaul the current legal, regulatory, and fiscal framework governing the upstream petroleum sector.
Regional Imperative for National Revival
Speaking on behalf of the Western Regional Minister, Ms. Sarpong emphasized that the sector’s health is not just a national economic issue but a regional development imperative.
“Our region is the physical base of the petroleum sector,” she stated. “When the national industry experiences a slowdown, the effects are felt swiftly within our regional economy… Revitalising exploration and production… means more jobs for our youth, more contracts for local businesses, and more opportunities for technical training.”
She argued for a broader definition of local content that moves beyond contracts to include human capital development and community empowerment, linking the industry more directly with local technical institutions like the Takoradi Technical University.
Local Content at a Crossroads
For her part, the CEO of the Minerals Commission, Ms. Emeafa Hardcastle stressed that a revived sector must directly benefit Ghanaians, particularly those in host communities. She called for a redefinition of local content to ensure it translates into “local empowerment,” fostering the growth of businesses, strengthening institutions, and uplifting communities.
The conference, which has drawn delegates from across Africa, Europe, the Americas, and Asia, is seen as a critical step in rebuilding investor confidence and setting a new, sustainable course for Ghana’s upstream petroleum industry, with the fortunes of the Western Region hanging in the balance.
