President Mahama pushes new petroleum law reforms to attract upstream investments
President John Dramani Mahama has announced plans to amend Ghana’s Petroleum Exploration and Production Act, 2016 (Act 919), to introduce improved investment incentives and strengthen the country’s competitiveness in attracting investments into the upstream petroleum sector.
He said the proposed reforms were aimed at creating a more attractive and predictable regulatory environment to encourage oil and gas companies to invest in exploration, develop new reserves and expand production.
Speaking at the 2026 Local Content Conference and Exhibition organised by the Petroleum Commission in Takoradi, President Mahama disclosed that the proposed amendment had been signed by the Ministers of Energy and Green Transitions and Finance and had been submitted to Cabinet for consideration.
President Mahama recalled assenting to Act 919 in August 2016, noting that although the legislation had served the country well, changing conditions in the global energy industry required adjustments to provide better incentives for investors.
“In August 2016, I assented to the Petroleum Exploration Development Act 919. This act has served us well, both in the current energy transition, but there is a need to amend the act to provide better incentives to attract investments,” he stated.
He added: “The amendment has been signed by the Ministers of Energy and Finance, and has just been submitted to Cabinet.”
The President acknowledged that poor governance and regulatory inconsistencies had contributed to the loss of investor confidence in Ghana’s petroleum industry, resulting in major international players withdrawing their investments and redirecting them to other jurisdictions.
He explained that the decline in exploration activities and the absence of new petroleum agreements had contributed significantly to falling crude oil production and revenues.
Ghana’s crude oil production, which peaked at approximately 195,000 barrels per day in 2019, subsequently declined to about 88,000 barrels per day before recovering to more than 120,000 barrels per day under his administration.
President Mahama said his government had prioritised resolving outstanding disputes, restoring investor confidence and strengthening partnerships with international oil companies to reverse the decline.
He disclosed that the Jubilee partners had committed $2 billion, while partners in the Offshore Cape Three Points project had pledged $1.5 billion towards new wells, subsea infrastructure and the expansion of production facilities.
Government is also engaging ENI, Vitol, Shell, Chevron and Petrobras on prospective petroleum acreages in the country’s western and eastern sedimentary basins.
The President revealed that three memoranda of understanding had been signed on key terms for three blocks, while discussions on additional petroleum agreements were ongoing.
He stressed that attracting investments into the upstream sector remained critical to replacing Ghana’s existing petroleum reserves and sustaining production over the long term.
President Mahama, however, emphasised that increased investments must translate into tangible benefits for Ghanaians through job creation, local business participation, skills development and technology transfer.
He urged the Petroleum Commission to ensure that operators and contractors complied with established standards on safety, environmental protection and local content as government pursued reforms to position Ghana as a competitive destination for petroleum investments.
