Policy
Ghana's petroleum sector balances output and green transition
Ghana's hydrocarbon industry is navigating natural declines across major offshore fields while integrating regulatory frameworks for sustainable growth.
Key points
- Ghana's modern petroleum sector began with the creation of the GNPC in 1983.
- The Jubilee, TEN, and Sankofa fields form the core of upstream production.
- Midstream and downstream segments are adapting to evolving regulatory and pricing regimes.
What happened
According to MyJoyOnline reporting, Ghana's petroleum industry has evolved significantly since the establishment of the Ghana National Petroleum Corporation in 1983. The watershed moment arrived with the 2007 discovery of the Jubilee Field, leading to first oil in December 2010. This success was followed by the development of the TEN and Sankofa Gye Nyame fields, transforming the nation into a prominent West African energy producer.
Today, the upstream sector is overseen by the Petroleum Commission through hybrid Petroleum Agreements. The Jubilee field, operated by Tullow Oil, remains the cornerstone of output, supported by infill drilling and the Jubilee South East project to mitigate natural declines. Meanwhile, the TEN and Sankofa fields have experienced steeper output reductions, though Sankofa continues to supply crucial non-associated gas to domestic thermal power plants.
Midstream and downstream evolution
Ghana's midstream segment is undergoing regulatory changes to support natural gas processing and transmission. While the GNPC was initially designated as the Gas Sector Aggregator in 2015, the Ghana National Gas Company Ltd has increasingly taken on this role. The downstream industry operates under a liberalized pricing model featuring a complex build-up of ex-refinery costs, margins, and statutory levies managed by numerous petroleum service providers and marketers.
Why it matters
For energy investors and policymakers across Africa, Ghana's trajectory highlights the complex challenge of managing mature offshore assets while planning for a lower-carbon future. Balancing hydrocarbon revenue with green economy imperatives remains critical. According to World Bank figures from 2024, Ghana achieved a 91.9 percent electrification rate, matching the global average, yet clean cooking access stood at just 35 percent of the population, well below the global average of 75.4 percent. Furthermore, fuel exports accounted for 8.8 percent of merchandise exports in 2025, according to World Bank data. These figures underline the ongoing domestic reliance on thermal power and the necessity for stable gas supplies from fields like Sankofa to maintain power generation while navigating broader energy transition goals.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Policy sets the direction for energy investment: national transition plans, market reforms such as Nigeria’s Electricity Act 2023, and global commitments under the Paris Agreement.
91.9% of people in Ghana had electricity in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
