The Minister of Energy and Green Transition, John Jinapor, has sounded a stern warning over the future of Ghana’s oil and gas industry, cautioning that the sector is on the brink of collapse due to stagnation and dwindling investor confidence.
According to John Jinapor, a sector once celebrated as a driver of Ghana’s economic transformation is now grappling with setbacks that threaten its sustainability and long-term national contribution. Delivering the keynote address at the Local Content Conference and Exhibition in Takoradi, he stressed that government is rolling out comprehensive measures to revive the space and restore growth.
This year’s event marks the 12th edition of the Local Content Conference and Exhibition, held under the theme “Revitalising Ghana’s Petroleum Exploration and Production Sector: Driving Innovation and Redefining Local Content for a Competitive Energy Economy.”
It comes at a critical period for Ghana’s petroleum industry, which has experienced significant decline following the withdrawal of key international oil and gas players.
In his address, Mr. Jinapor attributed the sector’s stagnation to regulatory bottlenecks, lengthy licensing procedures, unclear and inconsistent policy directions, and an excessive tax regime—all factors he says have discouraged investment.
Referencing the failed 2018 licensing round—where not a single petroleum agreement was concluded—he noted that such policy missteps have militated against investor confidence and contributed to the departure of major international companies.
He also lamented the slowdown in business activity in Takoradi, once the heartbeat of Ghana’s upstream petroleum industry, adding that the ripple effect on the local economy has been counter productive.
Mr. Jinapor urged industry players, regulators, and policymakers to treat the conference as a solutions-driven platform, stressing the need for actionable, measurable, and time-bound policies.
Acting Chief Executive Officer of the Petroleum Commission, Victoria Emefa Hardcastle, also reaffirmed the Commission’s commitment to revitalising Ghana’s upstream petroleum sector through innovation, investment attraction, and a stronger push for local content.
She acknowledged that despite Ghana’s promising petroleum resources, the industry is currently encountering diminishing returns as well as loss of investor confidence .
According to her, remedying the situation demands streamlined regulation, transparency, and a stable environment that boosts investor trust.
Delivering the Western Regional Minister’s remarks, Coordinating Director Richael Fosua Sarpong stressed that the conference theme aligns with the region’s strategic significance. She emphasised that local content should transcend contracts and procurement, urging stakeholders to treat host communities as true partners rather than bystanders in the petroleum value chain.
