Petroleum industry needs new deals and investors to expand, says industry leader
The Chief Executive Officer of the Ghana Upstream Petroleum Chamber, David Ampofo, has highlighted the lack of new investment in the country’s upstream petroleum industry as the key issue the sector faces. The industry has plateaued, Ampofo explained, due to the government’s inability to attract new investment into the sector.
In a recent interview, Mr Ampofo suggested that the remedy to the problem was for the government to make the sector more attractive to investors, rather than adopting an adversarial role. He argued that the industry needs to replace its reserves, which requires the addition of new resources, deals, and investors to the sector.
“Something is definitely wrong with the investment environment in my view, there’s room to improve. And I think part of it is also the overall perception of the industry, we must overcome that. If we perceive oil investors as just there to exploit us and so on, we’ll be in no hurry to work with them. That must change,” he said.
Ampofo emphasized that the industry’s private investors are risking significant amounts of capital that they bring into the country and seek returns. Therefore, he urged the government to create a more attractive environment for companies to invest in Ghana’s upstream petroleum industry.
“The way to perceive it is to create a much more attractive environment that enables companies to make those investments,” he added.
Mr Ampofo’s remarks come at a crucial time for Ghana’s petroleum industry, as the country seeks to address challenges such as declining oil production, high debt levels, and a potential drop in oil prices. The country’s upstream petroleum sector has significant potential, and attracting new investment would be critical to unlocking that potential and driving growth in the industry.
Ghana has made strides in the past few years to improve the investment environment in the sector, with the government implementing policies such as the Petroleum Exploration and Production Act, which seeks to provide a clear legal framework for investment in the industry. However, there is still more work to be done to create a truly attractive environment that can unlock the sector’s potential.
If Ghana can create such an environment, the country’s upstream petroleum industry could experience a significant boost, with new investments driving growth and enabling the industry to replace its reserves and expand. Ultimately, this could have positive ripple effects throughout the Ghanaian economy, creating jobs and driving economic growth.
