Unlocking Ghana’s Investment Potential in the Energy Sector: Insights from #AEW2023

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Ghana’s energy sector is on the precipice of transformation owing largely to the country’s wealth of untapped resources and attractive investment climate. Under efforts to invite investment into the country and stimulate the growth of the economy on the back of oil, gas and renewable energy, Ghana has reformed its fiscal policies and regulatory landscape, presenting a lucrative opportunity for regional and global players alike.

Ghana’s investment opportunities were on display during a country-dedicated session at the African Energy Week (AEW) 2023 conference and exhibition. The Invest in Ghana Energies provided insights into the country’s energy landscape, including resource potential, regulatory landscape and development objectives.

Kicking off the discussion, Herbert Krapa, Deputy Minister of Energy of Ghana, announced that “Ghana is the place of opportunities. The success of our petroleum sector is the result of policy for a conducive business environment. Our fiscal and regulatory environment is stable. Investors find those vital elements of certainty and predictability.”

Already representing one of Africa’s major oil producers, Ghana is committed to driving new investment into oil and gas exploration, thereby accelerating production and strengthening revenue generation. In tandem with economic diversification efforts, Ghana has put in place a strategic plan to enhance its competitive as an energy investment destination.

“The stability that we have and the regulatory certainty and predictability of the laws ensure that the biggest challenges around the fiscal regime are adequately addressed,” Yaw Amoateng Afriyie, Deputy CEO, Ghana Investment Promotion Centre, stated. “For us, the question is about the readiness of Ghana through the instruments we have in terms of regulation, policy to make sure we become more flexible and attractive so we secure the investments we need to get those stranded assets off the ground.”

Various policies and fiscal incentives have been implemented, paving the way for an influx in foreign capital. Egbert Faibille Jnr, CEO of the Petroleum Commission of Ghana, explained that, “We in Ghana, are ready for business.” The commission has reviewed the current fiscal regime, and according to Faibille, “have worked and submitted to the Ministry of Energy a new regime where there is a classification on a sliding scale basis. These initiatives will ensure that we become even more investor friendly.”

Three offshore fields are currently being developed, aimed at coming online by 2027. Yet, much of Ghana’s offshore oil and gas remains unexploited, leaving lucrative opportunities for E&P players. According to the panel, collaboration plays a key role in driving successful projects.

Joe Mensah, SVP and Head of Ghana Business Unit at Kosmos Energy remarked that, “We take pride in what we do in Ghana. Kosmos put the country on the map with our discovery of oil. We have been there and will continue to be there for years to come. I can affirm that we work collaboratively with the commission to make sure that there is a conducive environment for our activities.”

Midstream, the country is also making progress, with nine projects poised to come online between 2023 and 2027. While downstream, two refineries and three petrochemical projects aim to reduce the reliance on imported petroleum. These efforts stand to consolidate Ghana as a regional petroleum hub.

Oluwatobi Shofowora, Manager: Strategy and Corporate Planning, Tetracore Energy, shared the company’s plans to expand into these segments of the value chain. She stated that, “Ghana has a five-year plan to bring 27 projects online, with 10 of those projects across the midstream and downstream. There is also a Gas Master Plan and a need to bring oil and gas from the upstream to customers, where significant infrastructure is required. This is an area where Tetracore is looking at coming in. the virtual pipeline we are working on is short-term: but the plan is there and there are many opportunities.”

In addition to driving investment into energy, the country is making great strides towards investing in the local workforce, leveraging partnerships with major players to up-skill. Opoku Danquah, CEO of the Ghana National Petroleum Corporation, explained that, “In order to progress, there also has to be investment in human resources and human capital. It doesn’t matter how much investment comes in, if there is no investment in local content, you won’t find any progress. We are putting our resources, not only in natural resources, but human capital. We are training engineers for the future.”

For international service companies such as SLB, “The transformation in Ghana is evident. Globally, we have about 200 Ghanaians working at SLB. About 50% of Ghanaians in SLB are working internationally, many in leadership positions, acquiring expertise and competence that will go back to Ghana and play some part in contributing to taking Ghana to the next level,” the company’s Director, National Directorates & Independent for West Africa, Dr. Nosa Omorodion remarked.

#AEW2023 – organized by the African Energy Chamber– takes place this week in Cape Town under a mandate to make energy poverty history by 2030. Keep following www.aecweek.com for more exciting information and updates about Africa’s premier energy event.