Gov’t targets petroleum upstream recovery after five years of consecutive decline

The Ministry of Energy has projected a major turnaround in Ghana’s upstream petroleum sector, forecasting a rebound in crude oil production after five straight years of decline.

The state has rolled out a series of structural measures intended to reinforce the resilience of the wider energy sector while attracting significant foreign direct investment to reactivate stagnant oil and gas fields.

The Energy Minister, John Jinapor, made this known during President John Dramani Mahama’s “Resetting Ghana” citizens' engagement tour in the Savannah Region on Saturday, May 23, 2026.

Addressing traditional leaders, youth groups, and industry stakeholders, the Minister said capital-intensive investment frameworks recently undertaken by the state will boost production and reverse the downward trend that has affected Ghana’s crude output since 2021.

The 3.5 billion dollar injection

To demonstrate the government’s commitment to reviving the sector, Mr Jinapor revealed that the state has secured two major financial agreements aimed at expanding infrastructure and exploring new offshore blocks.

The first is a 1.5 billion dollar Memorandum of Understanding between the government and Eni. This is complemented by a separate 2 billion dollar development agreement with the Jubilee Partners.

The combined 3.5 billion dollars is expected to revitalise Ghana’s upstream sector, finance deep-water drilling and support a broader recovery in national production.

“For five consecutive years, petroleum production has been declining. This year, let me assure you, petroleum production is not going to decline. It is going to pick up and rise again,” the Minister said.

Navigating systemic reforms

Mr Jinapor acknowledged that while the wider energy sector faces deep structural challenges, ongoing reforms and new capital injections are beginning to produce positive outcomes.

The investments from Eni and the Jubilee Partners are expected to increase government revenue through oil royalties, corporate taxes and expanded local participation in the supply chain.

With the Savannah Region serving as the announcement venue, energy analysts are now awaiting mid-year production figures from the Ghana National Petroleum Corporation to assess the impact of the multibillion-dollar interventions.