Oil and Gas Survey: 45% cite political interference as most significant roadblock for oil exploration – Deloitte
An oil and Gas Industry Analysis Survey by Deloitte Ghana has revealed that 45.0% of stakeholders within the upstream petroleum producers have cited political interference and poor transparency as the most significant roadblock for oil exploration in Ghana.
The report is coming at a time when exploration activities in the oil and gas industry have dwindled since 2018.
It however noted that the deepwater basins are considered the most promising future exploration potential by 73% of respondents.
The research commissioned by Deloitte was unveiled at the ongoing Petroleum Commission LCCE Conference in Takoradi, Western region.
The issue of establishing joint ventures for exploration projects that can foster collaboration between the government, international oil companies (IOCs), and indigenous Ghanaian companies in exploration activities was the most popular suggestion by the respondents.
16 out of 55 respondents supported it.
The survey led by Yaw Appiah Lartey, Partner, Financial Advisory, Deloitte, was segmented into three parts; Financing and Investing in Oil and Gas, Regulatory Landscape for Doing Business and Sustainability Considerations.
Collaboration between Local and Regional Players
On Financing and Investing in Oil and Gas, the survey revealed that about 40% of respondents believe collaboration between local and regional players will promote financing in oil & gas.
Approximately 60% of respondents believe indigenous Exploration and Production (E&P) companies can finance their operations from local capital markets and commercial banks.
About 38% of respondents believe that the government can support independent oil and gas companies to become competitive in the petroleum industry by providing them with tax exemptions.
About 83% of the respondents were top-level management. This comprised of Chief Executive Officer and Managing Directors, Chief Operating Officers and General Managers.