No nation has stronger credentials as investment destination in West Africa than Ghana – Krapa

The Energy Minister, Herbert Krapa, has made a strong case for investors to consider oil exploration and production in Ghana.

He said this while speaking at the 7th edition of the 2024 Local Content Conference and Exhibition in Takoradi.

He stated that “Our country is moving towards ultra-deep-water production, requiring even more complexity, and sophistication of the highest level, of modern technologies, and huge capital investments. And it doesn’t end there: onshore exploration and development (led by GNPC) is progressing. A perfect case of a low hanging fruit for local content, although long eluding us but finally, once again, leadership is making it happen.”

Mr Krapa added that “No other nation has stronger credentials as a worthier investment destination in West Africa than us. The rule of law, anchored on good governance, free speech, freedoms and liberties, finds in Ghana a more fertile ground for growth than perhaps anywhere else. “

Ghana’s plan is to continually evolve its fiscal terms to be more progressive for investment.

The Local Content Conference and Exhibition organized annually by the Petroleum Commission of Ghana, seeks to promote local content and participation in the upstream petroleum industry.

Speaking at the opening ceremony, the Energy Minister enumerated some measures put in place to make investments seamless but cautioned that we are not giving away Ghana’s oil resources on a silver platter.

“Our plan is to continually evolve our fiscal terms to be more progressive for investment — But I should assure you also, that we are not giving away our oil resources on a silver platter in the name of investment attraction, nor under the high pressures of Energy Transition.”He lamented that “after nearly 15 years of active oil and gas production, only a handful of indigenous exploration and production companies operate in the industry. Inadequate indigenous capacity and access to capital are to blame.  This Conference should pay attention to that.  Ask the hard questions on channel partnerships and strategic alliances and come back with innovative answers.”

CEO of the Petroleum Commission, Egbert Isaac Faible Jnr, who touched on the theme, “Attracting Exploration & Production Investments to Boost Local Content – New Pathways”, noted that if we are not able to attract and retain Exploration and Production investments into Ghana’s upstream sector, local content will stagnate.

According to him, Ghana’s industry has recently taken a downward trend in new investments, production volumes and
general activity levels despite the initial growth and the string of successes as evidenced by oil discoveries.

“In analysing what has led to the status quo, the conclusions arrived at are not of rocket science learnings. What the Petroleum Commission will not dabble in is sacrificing as we step up efforts to turn attract the needed investments. The Ministry of Energy and the Petroleum Commission are committed to and doing all that is possible to attract new
investments into Ghana’s E&P space.”

 

He indicated that efforts to make Ghana an onshore petroleum producer will soon come to fruition when GNPC completes its data acquisition works with the drilling of an exploratory well. He also mentioned the commissioning of a brand-new chemical blending and warehousing facility at Kejebril, near Takoradi.

“This development marks a significant turn in our local content agenda. Owned by 2en Chemicals Limited, the company is owned by two IGCS, Ensol and Eco Natural Resources and is thus a joint venture. This facility will produce and supply production chemicals for offshore operations by way of use for risers and flowlines, topsides 14 equipment of FPSOs, blended chemicals for gas processing, corrosion control, gas pipeline, mineral processing, food processing
and industrial chemicals for manufacturing sector. The Commission encourages a lot more of such joint ventures for
obvious reasons,” he said.

The conference has brought together players in the Oil and Gas sector and other stakeholders from across Africa and beyond.

It includes panel discussions on topical issues, exhibition, networking, among others.

By Ewurama Smith

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