President John Dramani Mahama has announced a major turnaround in Ghana’s energy sector, revealing $3.5 billion in new commitments from global energy giants to reverse a six-year production slump
President John Dramani Mahama officially broke ground for the Phase 2 expansion of the Sentuo Oil Refinery in Tema, underscoring Ghana’s transition from a raw commodity exporter to a value-added industrial economy.
The ceremony followed the delivery of the first-ever Jubilee crude oil for local refining at the facility, highlighting the refinery’s expected capacity increase from 40,000 to 100,000 barrels per day (bpd) upon completion of Phase 2.
Speaking at the event, President Mahama described the expansion as a cornerstone of the government’s programme for economic renewal and a key step in its wider economic agenda.
“This expansion is not merely an investment in infrastructure; it is an investment in Ghana’s future,” the President stated. “By increasing domestic refining capacity, we reduce our dependence on imported petroleum products, strengthen our fuel supply chains, and retain more value within our economy.”
The President noted that, despite global energy volatility and geopolitical tensions, Ghana is successfully restoring macroeconomic stability. He credited ongoing reforms and strict fiscal discipline over the past 18 months for the return of investor confidence.
The $3.5 billion investment also includes $2 billion from Jubilee partners to drill up to 20 new wells and $1.5 billion from OCTP partners for field development and exploration. Ghana’s Jubilee field operator, Tullow Oil, along with its partners, is executing an amended Greater Jubilee Plan of Further Development to drill up to 20 additional wells. Backed by a $2 billion investment, this multi-year drilling campaign aims to counter natural decline and significantly boost the country’s oil and gas reserves through 2040.
For the $1.5 billion from OCTP partners for field development and exploration, the Ghanaian parliament formally ratified the license extensions for the West Cape Three Points and Deepwater Tano Petroleum Agreements, which cover the Jubilee and TEN fields, following government approval of the extensions in December. The licenses now extend to 2040. With an extended license period, the partnership is aligned on securing a rig for the 2027/2028 drilling campaign, which is expected to include up to ten wells and start in mid-2027
“We have committed upstream players to invest more money to drill new wells to raise the volumes of oil and gas we are producing,” President Mahama stated.
The President said these interventions are already yielding results. Ghana is set to record a net increase in crude oil production for the first time in several years. Output at the Jubilee field has risen from 60,000 to 85,000 barrels per day, with measurable gains also recorded at the TEN and Sankofa fields.
Building on this growth strategy, the government has initiated the commercialisation of the Afina Discovery and ratified a new petroleum agreement in the offshore Tano West basin.
“This expansion is not merely an investment in infrastructure,” the President emphasised. “It is an investment in Ghana’s future, our energy security, and our economic resilience.”
