Ghana reaches out to India for investment in oil and gas amid economic crisis
Ghana is seeking investment from India in its oil and gas sector as it faces its worst economic crisis in recent history, according to William Owuraku Aidoo, the Deputy Energy Minister of Ghana.
During a meeting with India’s Oil Minister Hardeep Singh Puri at the India Energy Week, Mr. Aidoo discussed the three available oil blocks in the western basin and expressed hope for Indian exploration and investment.
In addition to exploring these oil blocks, Ghana is also seeking support from India to build refineries with a capacity of 300,000 barrels per day.
The African nation aims to establish a petroleum hub and has offered to award exploration licenses through direct negotiations with interested Indian companies.
This move towards attracting Indian investment in the oil and gas sector shows Ghana’s efforts to overcome its economic crisis and strengthen its position in the industry.
Meanwhile, Ghana has seen a significant boost in its oil revenue since the start of crude oil exports in April 2011.
The nation has generated a total of $8.7 billion in revenue, which was made up of various sources including oil liftings, corporate taxes, and other sources of income.
Oil liftings from April 2011 to December 2022 reached $7 billion, while $1.4 billion was provided to the Ghana National Petroleum Corporation as equity financing.
The Annual Budget Funding Amount received $3.4 billion to fund projects, and $1.9 billion was transferred to the Ghana Stabilization Fund to counteract oil price shocks and revenue volatilities.
According to the reports, the Ghana Heritage Fund stood at $828 million at the end of December 2022 and had a closing book value of $918 million, with a realized investment income of $5.5 million.
The Stabilization Fund had an open book value of $190 million and realized investment income of $607,000.
These reports provide a glimpse into the success of Ghana’s oil exports and the impact they have had on the country’s economy.
The nation continues to make strides in utilizing its resources to boost its financial stability and drive growth.
