The government has acknowledged that unresolved legacy issues in Ghana’s petroleum sector contributed to some major international oil companies reducing or redirecting investments away from the country, as it moves to overhaul the upstream investment regime.
Deputy Minister for Energy and Green Transition, Richard Gyan-Mensah, says the government is now using recommendations from its Upstream Reform Committee to address longstanding concerns around Ghana’s fiscal and regulatory framework and restore confidence among international investors.
Speaking at the Africa Business Conversation organized by AB & David Africa on the theme: “From Investor Interest to Committed Capital : How to Reset Ghana’s Petroleum Upstream Sector for Sustainable Investments Mr. Gyan-Mensah admitted that previous challenges had affected investor confidence and Ghana’s competitiveness for global capital.
“We also recognise that legacy issues created uncertainty within the sector and contributed to some of the world’s leading international oil companies reducing or redirecting investment elsewhere,” he said.
The Deputy Minister said government has since engaged industry players to resolve those issues, noting that some global energy companies have now expressed renewed interest in Ghana’s upstream sector.
But he stressed that renewed interest will only translate into capital if Ghana can offer investors the commercial certainty required for long-term oil and gas projects.
“Capital is committed only where there is regulatory certainty, competitive fiscal terms, a business-friendly environment, reliable data and the infrastructure needed to bring discoveries to market,” Mr. Gyan-Mensah said.
He disclosed that the government has received the Upstream Reform Committee’s report, which contains recommendations aimed at improving Ghana’s competitiveness, easing the cost of doing business and strengthening investor confidence.
The government’s challenge now is to turn those recommendations into concrete reforms, particularly as Ghana competes with other African petroleum jurisdictions for increasingly mobile global capital.
Source | Citinewsroom
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