Steady Growth: Ghana’s Oil Industry in the Lower Price Environment
The discovery of the offshore Jubilee-field in 2007 put Ghana on the map as a commercial oil and gas producer. A decade after the discovery of the Jubilee-field there has been numerous notable events, including three presidential elections, a maritime border dispute and a drastic fall in the price of crude oil. Despite these developments, Ghana has had a steady growth in the oil and gas industry with the Tweneboa, Enyenra and Ntomme (TEN)-fields coming onstream in 2016 and the Sankofa-field in 2017. Drilling in the Greater Jubilee Full Field (GJFF) is projected to begin in 2018.
The major challenge for Ghana’s new industry is institutional stability. Ghana has a vibrant democracy, with competitive elections and frequent turnovers in government. Across political party lines there is agreement about a strong state-presence in the petroleum industry. However, polarisation between the two main political parties, has already generated challenges for the industry. The political polarisation also continues to hinder long-term technical and financial stability of the Ghana National Petroleum Corporation (GNPC) and Ghana National Gas Company (GNGC), state-owned petroleum companies that will continue to be active participants in petroleum projects. This paper will explore Ghana’s steady growth and the outlook for the future.