CSOs demand regulatory reforms to boost petroleum sector investment

The Civil Society Alliance has called on the government to implement comprehensive regulatory reforms in Ghana’s petroleum sector, with a particular focus on the upstream activities, to attract significant investment and revitalise the industry.

The alliance argues that addressing policy inconsistencies and fostering a predictable regulatory environment will help reverse the steady decline in domestic crude oil production and create a more dynamic sector.

Speaking at a press briefing, Nana Amoasi VII, Executive Director of the Institute for Energy Security, underscored the pressing need for reforms to encourage exploration and production activities in the upstream petroleum industry.

“Over the past 3-4 years, we have witnessed a decline in upstream petroleum production. Exploration activities are almost nonexistent, and one of the primary issues is policy and regulatory uncertainty within the sector. We are urging the government to ensure consistency and coherence in policies to instill confidence among existing and potential investors. A stable policy environment is critical for securing long-term investments,” he said.

Nana Amoasi VII also emphasised the need to strengthen the integration between the upstream and downstream petroleum sectors, advocating for the prioritisation of crude oil allocation to local refineries.

“There needs to be synergy between the upstream and downstream sectors. Our petroleum agreements stipulate that crude oil from domestic fields should be prioritized for local refineries, yet this is not being enforced. We are urging the government to uphold these agreements and regulations to enhance domestic processing capacity,” he added.

The proposed reforms aim to create a favorable investment climate while bolstering Ghana’s refining capabilities, ensuring that the country maximises the economic benefits of its petroleum resources.