Gov’t seals US$1.5bn upstream petroleum investment pact

By Kizito CUDJOE

Ghana has signed a US$1.5billion agreement with its Offshore Cape Three Points (OCT) partners to inject fresh capital into the upstream petroleum sector, a development government is confident will reinvigorate exploration and production at a time of waning fortunes.

This deal, involving ENI Ghana and Vitol Upstream Ghana Limited, marks one of the largest recent commitments to the country’s oil and gas industry.

Minister of Energy and Green Transition John Jinapor said this investment underlines international confidence in the country’s petroleum sector and wider economy, while promising jobs and infrastructure that could anchor long-term growth.

“This is not just a figure on a page; it is a vote of confidence in Ghana’s upstream petroleum sector, our economy, a commitment to job creation and a catalyst for the infrastructure that will power our nation forward,” Mr. Jinapor said.

Speaking at the 31st edition of Africa Oil Week (AOW) – 2025 in Accra, the minister explained that since assuming office, government has taken steps in re-engaging investors to arrest the decline in oil production and restore momentum in exploration.

He pointed to a US$2billion framework agreement recently signed with the Jubilee and TEN partners as part of this effort. “This investment will expectedly be committed to drilling 20 new wells and associated infrastructure over the licence period,” he noted.

According to Mr. Jinapor, interest in the country’s petroleum potential remains strong – with global energy giants already signalling a desire to participate in the upstream space. “We welcome the interest and are actively engaging with them. Their potential entry is a powerful validation of our work to create a stable, attractive and world-class investment environment,” he said.

He added that government’s strategy is not only to secure immediate investment but also build resilience in the sector. “We are actively working with our partners to unlock new opportunities, attract new investments and incentivise exploration that will replenish the national resource base and ensure long-term energy security,” he stressed.

Beyond hydrocarbons, the minister emphasised that the country’s energy future will depend on diversification and sustainability. He assured that government is deeply committed to promoting renewable energy as a central pillar of its development agenda.

“We recognise the importance of diversifying our energy sources to reduce overreliance on fossil fuels, minimise environmental pollution and ensure energy security for all citizens,” he said. With hydropower included, Ghana is on course to achieve at least 35 percent renewable energy in its overall generation mix by end of this year, he added.

Turning his focus to Africa’s broader energy challenge, Mr. Jinapor highlighted the paradox of energy poverty amid abundance – noting that the continent holds more than 125 billion barrels of oil and 620 trillion cubic feet of natural gas. “Africa cannot afford to continue struggling in achieving energy sufficiency,” he warned.

He urged greater collaboration among African states and private partners to share insights and harness innovative solutions that can meet the continent’s growing energy needs “responsibly and inclusively”.

“The future of African energy will not be a product of luck or imitation,” he said. “We will create it ourselves through the decisive application of our collective human intelligence.”

He further challenged industry stakeholders and policymakers gathered at the event to move beyond rhetoric and act decisively. “We must act, create and combine our intelligence to secure an energy future that is prosperous, sustainable and distinctly African,” he declared.

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