Oil and Gas in Ghana: An Overview

Executive Summary

Ghana's oil and gas sector is a cornerstone of its economy, playing a strategic role as an economic engine and a source of substantial export revenue. The sector is currently characterized by significant natural gas reserves and oil production that, although fluctuating, has shown signs of recent stabilization. Ghana has put in place a robust regulatory and institutional framework to manage its hydrocarbon resources. However, the sector also faces operational, environmental, social and governance challenges that require continued attention. Ambitious future projects aim to increase value addition and position Ghana as a regional energy hub, underscoring the imperative of sustainable development in the West African energy landscape.  

1. Introduction: Ghana's Hydrocarbon Landscape

Ghana's journey as an oil and gas producer began with the discovery of commercial quantities in 2007, notably the Jubilee field. Production officially started in December 2010 , marking a decisive turning point that transformed the country from a net importer into a significant regional player. Since then, the sector has become a cornerstone of Ghana's national economy, contributing substantially to its gross domestic product (GDP) and export earnings.  

Ghana's evolution from import dependence to producer status represents a strategic national imperative. The Ghana National Petroleum Corporation (GNPC) was established in 1983, well before the major commercial discoveries, with the clear mandate of ensuring an adequate and reliable supply of petroleum and reducing the country's dependence on crude oil imports. Subsequent discoveries and the start of production made this strategic objective a reality. The initial legislative framework, such as laws PNDCL 64 and 84 , reflects a long-term national commitment to developing domestic hydrocarbon resources. This historical trajectory shows that the sector's development is not limited to revenue generation, but is fundamentally aimed at strengthening national energy security and fostering economic resilience. Understanding this foundational imperative is crucial, because even as global energy transitions accelerate, Ghana's original drive to achieve energy independence through oil and gas remains an important underlying factor that shapes current policies and future strategic decisions for the sector. This history shapes how the industry's role in national development is perceived.  

2. Current State of Oil and Gas Production and Reserves

2.1. Crude Oil Production and Reserves

Ghana's crude oil production in 2024 totaled 48,240,010 barrels, a slight decrease of 0.01% (equivalent to 7,000 barrels) compared with the 48,247,037 barrels produced in 2023. This performance marks the closest the country has come to reversing the consecutive decline in its crude oil production seen since 2019. More recently, in March 2025, crude oil production was 186,000 barrels per day (BBL/D/1K). Although some sources cite an average of around 200,000 barrels per day , the latest official figures indicate a slight decline from that average.  

In 2019, the Ministry of Finance had projected a substantial increase in Ghana's oil production, targeting 420,020 barrels per day by 2023 and 500,000 barrels per day by 2024. A deputy Minister of Energy even reiterated a target of 500,000 barrels per day by 2025. The significant gap between these ambitious projections and the actual production figures for 2023 and 2024 (around 132,000 barrels per day on an annual average) and for March 2025 (186,000 barrels per day) is striking. This indicates that the anticipated ramp-up of planned developments, such as the Aker fields (for which first oil was expected between the fourth quarter of 2020 and the first quarter of 2021 ), either suffered significant delays or ran into unforeseen technical challenges, or that existing fields experienced faster-than-expected decline rates. The concern expressed by the Public Interest and Accountability Committee (PIAC) about the production decline at the TEN field confirms this observation. This persistent shortfall against forecasts is a key indicator of underlying difficulties in Ghana's upstream sector, potentially including problems attracting investment, executing projects or reservoir performance. It has a direct impact on national revenue forecasts, budget planning and the country's ability to maximize the economic benefits of its hydrocarbon resources. Closing this gap requires a reassessment of field development and investment strategies.  

Ghana's three main producing oil fields are Jubilee, Tweneboa-Enyenra-Ntomme (TEN) and Sankofa Gye Nyame (SGN). In 2024, the Jubilee field remained the dominant contributor, accounting for 66% of Ghana's total oil production. SGN contributed 20%, while the TEN field accounted for 14%. PIAC has formally expressed concerns about the production decline at the TEN field, calling for urgent technical and cost audits to determine the root causes.  

As regards oil reserves, at the end of 2023, Ghana's total oil reserves were estimated at 1,813 million barrels of oil (MMbbl), of which 732 MMbbl were classified as proved and probable. The breakdown of proved reserves underscores the importance of existing fields: Jubilee holds 43%, TEN 12%, Sankofa 11%, and other fields, including Pecan, account for the remaining 34%. Aker Energy's Deepwater Tano Cape Three Points (DWT/CT) block represents a significant future prospect, with gross contingent resources (2C) estimated at 450-550 million barrels of oil equivalent (mmboe). Aker Energy estimates a total volumetric potential of 600-1,000 mmboe with the drilling of two additional wells.  

Table 1: Ghana's Crude Oil Production (2019-2025) and Projections

Note: The actual production figures for 2023 and 2024 are daily averages calculated from the annual totals provided.

2.2. Natural Gas Production and Use

Ghana has significant natural gas reserves, estimated at a total of 4,100 billion cubic feet (Bcf). This includes 2,329 Bcf of contingent reserves and 1,771 Bcf of proved and probable reserves. The country produces both associated gas, extracted along with crude oil from fields such as Jubilee, Sankofa Gye Nyame and TEN, and non-associated gas, produced solely from the Offshore Cape Three Points (OCTP) field.  

Natural gas is the backbone of Ghana's power sector, accounting for more than 60% of the country's electricity generation owing to growing reliance on gas-fired power plants. Between January and September 2024, the Jubilee field alone produced an average of 235.27 million standard cubic feet per day (MMscf/d) of gas. In 2020, a total of 88,515.58 million standard cubic feet (MMSCF) of associated and non-associated gas from the Jubilee, TEN and SGN fields was supplied to various thermal power plants across Ghana for domestic electricity generation. In 2021, domestic gas met approximately 85% of Ghana's total gas demand for power generation , underscoring its crucial role in national energy security. Overall, between January and September 2024, an average daily flow of 285.26 MMScf (totaling 77.88 Bcf) of gas was delivered for power generation and to other non-power industrial users.  

Gas reinjection is a common practice for maintaining reservoir pressure and improving oil recovery, with 109.62 Bcf reinjected from the Jubilee field between January and September 2024. Despite efforts to utilize gas, flaring remains a challenge. An average of 32.68 MMscf/d of gas was flared between January and July 2024, with peak flaring volume reaching 38.95 MMscf/d in July. It is alarming to note that Ghana reportedly loses around $100 million a year because of gas flaring , which represents both an economic loss and a significant environmental concern.  

The persistence of gas flaring, despite Ghana's critical dependence on natural gas for more than 60% of its electricity generation and the fact that domestic gas covers 85% of its power needs , highlights a notable contradiction. This situation, which causes an estimated economic loss of $100 million a year and contributes to emissions of potent greenhouse gases , suggests that, despite strong domestic demand and the economic value of gas, infrastructure or operational bottlenecks still prevent the full capture and utilization of associated gas. Continued gas flaring represents a substantial missed opportunity for Ghana to improve its energy self-sufficiency, generate additional revenue and significantly reduce its environmental footprint. Solving this problem requires targeted investment in gas gathering, processing and transportation infrastructure, as well as stricter regulatory enforcement to minimize flaring. This is crucial for environmental sustainability and economic optimization, in line with global climate action goals.