Ghana's crude oil production in 2023 has increased by 30%, reaching 72,000 barrels per day (bpd). This production increase, announced by John Abdulai Jinapor, Ghana's Minister of Energy and Green Transition, at the Africa Energy Conference in Cape Town, is considered a milestone in the history of the country's oil industry and comes at a time when Ghana has experienced a continuous decline in oil production over the past five years.
Investment in Jubilee Field
This production increase follows the signing of a $2 billion memorandum of understanding with Cosmos Energy, one of the partners in the Jubilee Field. This agreement extends the licenses for the Jubilee and TEN fields until 2040 and approves a new development plan for the Jubilee Field, which includes drilling 20 additional wells. The goal of this plan is to increase oil production and provide cheap gas for domestic electricity generation.
Future Plans and Financial Changes
In its August results, Cosmos announced that the partners in the Jubilee Field are seeking a drilling rig for a campaign that includes drilling up to 10 wells in 2027 to 2028, which is expected to start in mid-2027. In the second quarter of 2023, the Jubilee Field averaged 72,000 barrels per day, with wells J76 and J77 coming online in June and July. Additionally, Cosmos has maintained its capital budget for 2026 at $350 million.
Andy Inglis, CEO of Cosmos, stated that the extension of the licenses has allowed the company to invest with greater confidence, particularly in technology and focusing on providing gas for Ghana. He also highlighted the importance of energy security and supply capability, saying, "We have agreed to supply low-cost gas to this country." Ghana is also reviewing its financial terms to attract more upstream investments. Jinapor stated, "We are reforming our financial regime to make it more competitive and friendly." The proposed changes have been approved by the Ministers of Energy and Finance and will soon be presented to the Cabinet and then to Parliament.
Jinapor also announced the signing of an agreement with Chevron following parliamentary approval. The government is also in negotiations with Shell, CNOOC, and Petrobras.
