President John Mahama has noted that there is a greater chance of Ghana discovering more oil and gas in the coming days.

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The president made this information known during a speech at the Africa CEO Forum Annual Summit in Côte d’Ivoire, under the theme Oil and Renewable Energy – A Dual Bet for Ghana’s Future; a major platform for business leaders, policymakers, and investors to discuss Africa’s economic future.

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His comments come on the back of the decline in Ghana oil and gas production which he blames on the toxic environment created by the previous government leading to disinvestment and efficient production in Ghana’s energy sector.

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But President Mahama has assured that his government is committed to restoring investor confidence, adding that revitalization works have already started as Eni, an Italian multinational energy company which had a long-running dispute with the government, has started drilling again.He said; "Investor confidence has returned. New commitments are being made to produce more gas and oil. Eni are back and drilling again. Early signs indicate we may discover substantial quantities of oil and gas."

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President Mahama also added that other energy companies that cut ties with Ghana such Talos Energy Inc. (TALO) due to tax disputes with the previous government are currently being engaged to restore the company’s operations in Ghana.

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He believes this could have been resolved amicably without legal tussles. The president said: "I think the environment got a bit toxic. I don't know for what reason. The government didn’t seem to prioritise the sector," he noted. "So there was a lot of disinvestment. They had constant squabbles with the oil investors. For instance, with Talos, there was a dispute over taxes. It was something they could have resolved. TALO went to arbitration and won before we came into office. We are now engaging with TALO to resolve the remaining issues. And that’s how it should be done.”

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Former government’s dispute with oil company Eni and other energy companies

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The erstwhile government had several disputes with investors and companies in the oil sector, primarily particularly due to contract disagreements, tax disputes and unsettled unitisation directives.

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A case in point is the government’s seemingly forced merging of ENI Ghana and Springfield Exploration & Production Ltd in 2020. The move led to the battles and arbitration proceedings in 2024 leading to the company’s relocation of its expatriate management to Côte d'Ivoire.

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Another termination of contract occurred in 2018 when government ended an agreement with Ghana Power Generation Company (GPGC) following findings from a committee set up then and recommendations by the then Attorney General that suggested risk of government incurring a loss of about $115.48 million over the contract period.

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About Ghana’s oil decline

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Ghana’s crude oil production has declined for the fifth consecutive year, dropping to 48.25 million barrels in 2024 from a peak of 71.44 million barrels in 2019, according to the latest annual report by the Public Interest and Accountability Committee (PIAC).

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The report shows an average annual decline of 7.4% over the five years. Beyond declining production, PIAC’s 2024 report highlights major issues with petroleum revenue management.

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It revealed that GNPC Explorco failed to pay US$145.68 million in oil lifting proceeds into the Petroleum Holding Fund (PHF) in 2024. This brings the total unpaid revenues by JOHL and GNPC Explorco to US$488.79 million by the end of the year.

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Despite GNPC’s insistence that these proceeds do not qualify as PHF payments, PIAC maintains they represent indirect State participation and must be paid into the fund.

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