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Ghana has successfully reformed its fiscal policies and regulatory landscape to attract energy sector investments, according to an industry panel discussion organized at the African Energy Week: Invest in African Energies 2024 conference.

Ghana’s Petroleum Exploration and Production Act of 2016 provides regulatory stability through consistent and fair application, underscoring the country's commitment to upholding the sanctity of contracts. Egbert Faibille Jr., CEO of Ghana’s Petroleum Commission, highlighted the country’s secure investment environment for oil and gas, noting that political risk is “virtually non-existent” and there have been no attempts to expropriate investments or alter contractual terms during government transitions.

“Money is a coward and will not go to a place or stay in a place where it will not get protection,” said Faibille Jnr.

From a downstream perspective, Dr. Sheila Addo, Director for Policy Coordination at the National Petroleum Authority, noted that Ghana’s regulatory philosophy focuses on a flexible and market-driven approach. “Our philosophy is that of deregulation. We deregulate infrastructure, price and product supply,” Addo said.

Riverson Oppong, CEO of the Association of Oil Marketing Companies, emphasized the distinctiveness of Ghana’s regulatory approach, stating: “Ghana does not simply copy and paste policies, but is often a reference point for best practices, including the zero-gas flaring policy and local content initiatives.”

Faibille Jnr. indicated that further reforms to Ghana’s fiscal policies could be on the horizon, including potential amendments to laws requiring petroleum companies to allocate at least 15% of every project to the state as free and carried interest – a regulation viewed as a potential deterrent to investment. Additionally, Ghana is considering a more flexible oil royalty regime to attract investment and mitigate risks for energy companies.