Ghana has taken a major step towards reviving upstream petroleum exploration with the signing of two Memoranda of Understanding (MoUs) covering offshore blocks GH WB 3 and GH WB 8 in the Tano Basin.
The agreements involve Eni Ghana, Vitol Upstream Tano Limited and the Ghana National Petroleum Corporation (GNPC) and are expected to pave the way for the negotiation and conclusion of final Petroleum Agreements.
The MoUs were signed on behalf of government by the Minister for Energy and Green Transition, Dr John Abdulai Jinapor, as part of efforts to unlock Ghana’s remaining hydrocarbon potential and attract fresh investment into the upstream petroleum sector.
The two acreages cover approximately 2,100 square kilometres, with water depths ranging from 750 to 2,800 metres.
According to government, the development builds on a 2025 Memorandum of Intent, which proposed an investment of about US$1.5 billion.
The latest agreements are significant for Ghana as the country seeks to reinvigorate exploration and increase investment in its upstream sector, particularly as production from existing oil fields matures.
The government says the agreements form part of reforms under President John Dramani Mahama aimed at creating a more competitive, predictable and investment-friendly petroleum industry.
Leveraging existing infrastructure
The location of the two blocks could also give investors an advantage.
Government says their proximity to existing producing fields and petroleum infrastructure could allow the companies to leverage Ghana’s established upstream ecosystem as exploration activities progress.
This could potentially reduce some of the infrastructure and logistical challenges associated with developing new offshore discoveries.
For Ghana, however, the immediate priority is moving from agreements to actual exploration activity and, ultimately, commercial discoveries.
The government says it will continue to deepen reforms, attract investment and accelerate exploration and production while ensuring the country secures maximum and sustainable value from its hydrocarbon resources.
-Citinewsroom-