Energy & Utilities

The discovery of large offshore oil reserves has had a significant impact on the national balance sheet, with shipments of crude oil representing the second-largest export category in 2017 after gold. Ghana is a relative newcomer to the global hydrocarbons industry, and with proven oil reserves of around 660m barrels and an output of about 126,000 barrels per day, it is a small producer by regional standards, but there is considerable potential for growth. The ongoing expansion of commercial operations into new reserves has led some commentators to identify Ghana as the world’s next oil hotspot, raising hopes that the export of oil and its derivatives can sustain a new era of economic prosperity. Moreover, there are a number of developments to boost the supply of gas feedstock to Ghana’s thermal power stations in the short term, such as the offshore Sankofa field. While these developments are welcome, the principal challenge faced by the sector’s governing bodies is the successful resolution of the payment backlog, which could inhibit much-needed private sector investment. This chapter contains interviews with Paul McDade, CEO, Tullow Oil; and Jonathan Amoako-Baah, CEO, Ghana Grid Company.