The government has assured the energy sector it is preparing to confront declining investment in upstream petroleum operations, a challenge industry experts warn could threaten national energy security and jeopardize revenues if left unchecked.
Deputy Minister for Energy and Green Transition Richard Gyan Mensah delivered the commitment at the 9th Ghana Energy Awards held Friday, November 28, 2025, at Labadi Beach Hotel in Accra. He emphasized the state is poised to reverse the slump, restore investor confidence, and keep Ghana’s energy future intact.
Gyan Mensah explained the upstream sector, where oil and gas exploration and production occur, represents the backbone keeping thermal plants running, industries active, households powered, and government revenue flowing. When investments dry up, new oilfields are not explored, old wells decline, gas supply shrinks, and the country risks facing power shortages, rising fuel costs, and shrinking export earnings.
The Deputy Minister warned that the chain reaction would hit ordinary Ghanaians hardest if nothing drastic is done. Less gas means more expensive fuel for power plants, which can easily lead to unstable electricity supply and higher tariffs. However, he assured industry players the government is not waiting for that worst case scenario.
Fuel supply to thermal plants has already improved, gas supply is steadily increasing, and key financial obligations which once scared off investors are now being addressed, according to Gyan Mensah. Early signs show confidence is slowly returning to the sector.
The Deputy Minister stressed the government has a responsibility to keep lights on, power industries, and light up homes and pathways. He assured that with ministry efforts and industry collaboration, Ghana will reverse the declining investments and development in the petroleum upstream sector.
Beyond petroleum, Gyan Mensah reiterated the government’s renewed push for renewable energy, saying the country remains committed to expanding its clean energy share while ensuring every Ghanaian, no matter how remote their community, gets connected to the national grid.
The Minister admitted the energy sector is not completely out of trouble. However, with difficult decisions, disciplined management, strengthened stakeholder engagement, and renewed investment outreach, the ministry believes the turnaround has already begun.
Gyan Mensah emphasized the government is pursuing its aim of increasing renewable energy contribution in the national energy generation mix. He stated authorities are looking forward to ensuring every Ghanaian, whether on islands or in far to reach areas, will be connected to the national grid through ongoing efforts.
The Deputy Minister cautioned that through difficult decisions, disciplined management, strengthened stakeholder engagement, and renewed investment outreach, stabilization of the sector has begun. Reforms are evident, but he stressed the sector is not out of the woods yet.
Gyan Mensah acknowledged challenges exist and confirmed the government is on the path to fix systemic failures, reassure investors, and keep the sector stable long enough to attract new capital. The Ministry outlined key measures implemented since January 2025 to stabilize and strengthen the sector.
These initiatives include procurement of 200 transformers, enforcement of the cash waterfall mechanism, restructuring of power purchase agreements, and targeted investments in rural electrification and solar energy deployment. The measures saved the state more than $300 million and are helping lay foundation for a sustainable 24 hour economy, according to the Deputy Minister.
The government has also successfully renegotiated money owed to Independent Power Producers (IPPs), which the Ministry of Energy estimates saved the country approximately $300 million. This debt restructuring represents one of several deliberate policy actions undertaken to restore sector stability.
At the awards ceremony, Gyan Mensah recalled the 700 megawatt shortfall recorded in December 2024, which triggered widespread load shedding across the country. He noted government led interventions across generation, transmission, distribution, and financing had restored energy security and supported both economic and industrial growth.
The Deputy Minister emphasized months of uninterrupted power supply signal marked improvement from the instability experienced last year. Government initiatives highlighted include addition of more than 200 megawatts of solar power, new mini grid systems supplying electricity to communities in Ada, rollout of smart solar streetlights nationwide, and continued progress toward nuclear energy development.
Financial reforms such as expansion of the Petroleum Commission’s Local Content Fund are expected to boost Ghanaian participation in the oil and gas sector. The fund increased by 11.22 percent in cedi terms to GHS 29.89 million and by 27.08 percent in dollar terms to $2.49 million, supporting training and capacity building for Ghanaian businesses.
Ghana’s Energy Transition Framework, a $560 billion roadmap launched at the 27th United Nations Climate Change Conference (COP27), remains at the core of government strategy. It seeks to deliver affordable energy targeting below 4.5 cents per kilowatt hour while prioritizing decarbonization and universal access.
Energy Minister John Abdulai Jinapor, in a speech read on his behalf by Gyan Mensah, praised the awards as a platform that has become a beacon of excellence, innovation, and leadership in the energy landscape. The Minister stated the event does not only celebrate outstanding achievements but also inspires continued commitment to building a resilient, inclusive, and sustainable energy future.
Jinapor stressed the importance of energy access to Ghana’s developmental goals. For a country like Ghana whose socio economic growth is intimately tied to energy access and reliability, the energy sector is not a mere enabler of development but its foundation, he stated.
Awarding panel chairman Kwame Jantuah underscored the role of independent assessment in driving sector accountability and innovation. He noted independent institutions like the Ghana Energy Awards help assess sector performance and maintain accountability, emphasizing such platforms are vital for promoting excellence and encouraging healthy competition within the industry.
The 2025 edition featured 26 competitive and six honorary award categories, with new recognitions for energy sector reformers, operational resilience, and emerging female leaders. Two categories including Off Grid Energy Solution of the Year and Energy Investment Impact Award were withdrawn after entries did not meet required standards, underscoring the scheme’s commitment to integrity.
Flagship honors included Energy Personality of the Year for both male and female categories, Chief Executive of the Year for Power and Petroleum sectors, Chief Green Trailblazer Award, Emerging Female Leader in Energy Award, Energy Signature Award, Energy Sector Operational Resilience Award, and Energy Advocate of the Year.
Engineering Edward Ekow Obeng Kenzo, Acting Chief Executive Officer of Volta River Authority (VRA), was adjudged male Energy Personality of the Year. Judith Adjobah Blay, Acting CEO of Ghana National Gas Company, received the female Energy Personality of the Year award.
Maurizio Pinna of Eni Ghana was awarded CEO of the Year for Petroleum, while Electricity Company of Ghana’s Julius Kpekpena was named CEO of the Year for Power. The event attracted global attention, including participation from Nishant Kumar Sharma, Executive Co Chair of the World Energy Council’s Studies Committee on the Energy Trilemma, who shared insights on Ghana’s energy transformation within the context of global best practices.
The nomination window, which ran from September 9 to October 31, 2025, received more than 500 submissions, including a remarkable number of first time entrants. This high level of participation demonstrates growing interest in sector recognition and engagement with performance standards.
The annual awards event, organized by Energy Media Group and endorsed by the Ministry of Energy and Green Transition and World Energy Council Ghana, has since 2017 recognized individuals and institutions for exemplary contributions to Ghana’s energy sector. Event Director and CEO of Energy Media Group Engineering Henry Teinor revealed the 2025 launch had been moved from its usual May to June window to allow for wider stakeholder engagement.
Upstream petroleum challenges stem from multiple factors including global oil price volatility, regulatory uncertainties, aging infrastructure, and competition for capital with more attractive markets. Ghana’s oil production has declined from peaks above 200,000 barrels per day to current levels below 150,000 barrels per day as major fields mature without sufficient new discoveries coming online.
The Jubilee Field, Ghana’s flagship production asset discovered in 2007, has experienced natural decline as reservoirs deplete. The TEN fields comprising Tweneboa, Enyenra, and Ntomme have similarly seen production rates fall from initial peaks. Without significant new exploration success and field development investments, output will continue declining.
Gas supply constraints particularly affect power generation as thermal plants depend heavily on domestic natural gas from offshore fields. Insufficient gas volumes force utilities to rely on more expensive liquid fuels like light crude oil and diesel, increasing generation costs that ultimately burden consumers through higher electricity tariffs.
The government’s upstream revival strategy centers on improving fiscal terms to attract exploration investment, accelerating licensing rounds for available acreage, resolving legacy contractual disputes, and ensuring timely payments to service providers and operators. Officials recognize that without competitive investment conditions, international oil companies will deploy capital to more favorable jurisdictions.
Ghana competes with other African producers including Nigeria, Angola, Senegal, and Mozambique for exploration dollars. Recent discoveries in Namibia and significant gas developments offshore Mauritania and Senegal have shifted investor attention away from Ghana, making fiscal and regulatory improvements essential for reversing the trend.
The Ministry’s assurances reflect recognition that energy security depends not just on current production but on sustaining exploration and development activities that will supply future demand. With electricity consumption projected to grow as the economy expands and electrification reaches more communities, maintaining adequate domestic oil and gas production becomes increasingly critical.
Whether the government’s reform efforts will successfully reverse upstream investment decline remains to be seen. Industry observers note that beyond policy pronouncements, tangible improvements in payment discipline, contract sanctity, regulatory predictability, and fiscal competitiveness will determine whether international operators increase their Ghana commitments.