Ghana’s oil and gas sector is expected to experience a significant recovery in 2026 after several consecutive years of declining output, according to Energy Minister John Jinapor, who says new investments and policy reforms are beginning to reverse the trend.
Speaking during the government’s “Resetting Ghana” engagement programme in the Savannah Region, the Energy Minister explained that the country’s petroleum production, which has been under pressure for about five years, is now showing signs of stabilisation and growth. He said the administration has introduced measures aimed at strengthening upstream production and restoring investor confidence in the sector, which is central to Ghana’s fiscal and export earnings.
The Minister highlighted that government has signed major investment agreements worth billions of dollars with key international partners, including Italian energy giant Eni and the Jubilee Partners consortium, to boost exploration, drilling, and production activities. According to him, these agreements are expected to increase output in both oil and gas fields, helping Ghana move away from the prolonged decline recorded in recent years.
Industry data and official projections show that Ghana’s crude oil production has been fluctuating downward in recent years, partly due to ageing fields, reduced exploration activity, and technical challenges in existing offshore assets. Reports from energy sector monitoring agencies indicate that production had fallen significantly from its earlier peak levels, with output in 2025 averaging just over 100,000 barrels per day, down from higher levels recorded earlier in the decade.
Government officials, however, say the situation is now improving due to renewed activity in key oil fields such as Jubilee and TEN, as well as fresh drilling campaigns by international operators. The Energy Minister noted that Ghana is targeting an additional 10,000 barrels per day of crude oil output in 2026 as part of broader reforms to revive the petroleum sector.
He added that recent policy interventions, including regulatory reforms and renegotiation of petroleum agreements, are helping to attract new investment into exploration and production. According to him, major oil companies that had previously slowed operations in Ghana are now showing renewed interest, a development he described as a strong signal of confidence in the country’s energy future.
The Minister further stated that improvements in gas production are also playing a crucial role in the expected recovery. Gas from major offshore fields is being increasingly channelled into domestic power generation, reducing reliance on expensive fuel imports and stabilising electricity supply. Officials say this integrated approach is expected to support both industrial growth and energy security in the coming years.
Energy analysts note that Ghana’s oil sector has been under pressure not only due to declining output but also global market volatility, fluctuating prices, and operational challenges in mature fields. However, the recent rebound in investment activity suggests that production could stabilise if ongoing projects are delivered on schedule.
The government has also pointed to broader energy sector reforms, including debt restructuring and improved financial management in the power and petroleum industries, as part of efforts to create a more sustainable environment for long-term growth. Recent moves to clear outstanding energy sector debts have been described as crucial in restoring confidence among international investors and ensuring smoother operations across the value chain.
Experts believe that if the planned investments materialise and new production comes on stream as expected, Ghana could see a gradual increase in output over the next few years, strengthening its position as one of West Africa’s key oil producers. However, they also caution that sustained recovery will depend on continued exploration, stable policy direction, and efficient management of existing oil fields.
For now, government remains optimistic that 2026 will mark a turning point for the petroleum sector, with production expected to rise after years of decline, offering renewed hope for revenue growth and economic stability.
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