Ghana’s Petroleum Sector
From the wellhead to the pump – a resource, responsibly managed.
Upstream exploration and production, gas commercialisation and infrastructure, and a deregulated downstream — the full value chain positioning Ghana as a petroleum hub in West Africa.
At a glance
Overview of The Ghana Petroleum Sector
The petroleum industry is typically categorized into three segments; Upstream, Midstream and Downstream.
For the purposes of regulation in Ghana, the industry is divided into Upstream and downstream subsectors which cover activities from the exploration and production of petroleum through refining, storage, transportation, to the marketing of petroleum products.
PETROLEUM UPSTREAM SUB SECTOR
Upstream activities include pre-licensing, licensing, exploration and appraisal, field development and production, disposal and decommissioning. Ghana has four sedimentary basins that are considered to have high prospects for the discovery of oil and gas.
They are Western (Tano- Cape Three Points) Basin, Central (Saltpond) Basin, Eastern (Accra –Keta) Basin which are all offshore and are fairly well explored and the Voltaian Basin which is onshore and has seen little exploration.
In 2007, the jubilee Field became Ghana’s first major commercial discovery. In less than a decade of First Oil from the Jubilee Field, significant strides have been made in the Upstream Subsector with twenty five (25) discoveries made since 2007. Ghana currently has three offshore producing fields, Jubilee, Tweneboa, Enyera and Ntomme (TEN) and Sankofa and Gye Nyame Field. However first Gas from the Sankofa and Gye Nyame Field is scheduled to come on stream in the third quarter of 2018.
The Ministry of Energy has worked closely with relevant stakeholders over the years to create an enabling legal and regulatory regime aimed at ensuring transparent, accountable and prudent management of Ghana’s petroleum resources. Critical Legislation in place include: the GNPC Law 1983(PNDCL64), Income Tax Act 2015 (Act 896), Petroleum Revenue Management Act, 2011 (Act 815) as amended, Petroleum Commission Act 2011(Act 821), Local Content and Local Participation Regulations 2013, (Ll 2204), Petroleum (Exploration and Production) Act, 2016 (Act 919), Petroleum (Exploration and Production) (Measurement) Regulations,2016 (Ll 2246) and Petroleum Commission (Fee and Charges) Regulations, 2015 (Ll2221).
01 — Upstream
Exploration, appraisal, production — and prudent stewardship.
Ghana’s power supply is drawn from hydroelectricity, thermal plants fueled by crude oil, natural gas and diesel, solar, and imports from La Côte d’Ivoire. Ghana exports power to Togo, Benin and Burkina Faso — with grid expansions set to open more sub-regional trade.
Reforms in the 1980s dismantled barriers to entry and created a level playing field for independent power producers alongside public sector generators.
Western Basin
Tano — Cape Three Points
Well explored — producing
Central Basin
Saltpond
Well explored
Voltaian Basin
Onshore
Frontier — little exploration
Eastern Basin
Accra — Keta
Fairly well explored
Producing fields
Three offshore developments
Ghana currently has three offshore producing fields, with first gas from the Sankofa & Gye Nyame Field on stream since Q3 2018.
Jubilee
First oil · 2010
Ghana’s first commercial oil production — the anchor of the Western Basin.
TEN
First oil · 2016
Tweneboa, Enyenra and Ntomme — a multi-reservoir deepwater development.
Sankofa & Gye Nyame
First oil · 2017
Oil producing since 2017; first gas came on stream in Q3 2018.
GAS COMMERCIALIZATION AND GAS INFRASTRUCTURE PROJECTS
The significant indigenous associated and non-associated gas reserves discovered recently from Ghana’s fields has created greater prospects for diversifying the economy through the utilization of the gas resource endowments to generate power to support the country’s industrializing efforts, as well as develop new industries including commercial scale fertilizer production and a petro-chemical industry with strong job creation implications. However inadequate infrastructure, gas monetization constraints and required expertise remain major challenges to the development of a vibrant and sustainable indigenous gas industry.
The First Phase of the Gas Infrastructure Project (GIP) consisting of and Offshore Pipeline,O nshore Pipeline and a Gas Processing Plant (GPP) with a capacity of 150mmscfd has been completed.
A Gas Master Plan (GMP) has been developed to provide broad guidance on the prioritization and utilization of gas in power and non-power sectors, gas infrastructure development planning and gas pricing. It is expected that the Gas Master Plan will provide the enabling environment for increased investment in Ghana`s gas sector.
02 — Gas commercialisation
Turning gas reserves into industry, power and jobs.
Significant associated and non-associated gas reserves have opened the door to diversifying the economy — powering industrialisation and enabling new industries including commercial-scale fertiliser production and petrochemicals.
Inadequate infrastructure, monetisation constraints and technical expertise remain challenges. The Gas Master Plan provides the framework for prioritisation, infrastructure planning and pricing.
Gas Infrastructure Project — Phase 1 (complete)
Offshore pipeline
Onshore pipeline
Gas Processing Plant
150 mmscfd
Gas Master Plan — pillars
Prioritisation of gas use in power & non-power sectors
Transparent gas pricing framework
Gas infrastructure development planning
Enabling environment for investment
PETROLEUM DOWNSTREAM SUB SECTOR
The Petroleum Downstream subsector in Ghana is permanently predominantly characterized by the importation of crude oil and finished products, refining, storage, Transportation (road, rail, lake and ocean), marketing and sale of petroleum products.
The downstream market has been deregulated. As a result, set targets for the Deregulation Policy have been achieved as follows:
- Removal of restrictions on the establishment and operation of Petroleum infrastructural facilities;
- Removal of restrictions on the importation of crude oil and finished petroleum products; and
- Petroleum Product Price Liberalization.
The Downstream Sub sector, being a vibrant industry, continues to develop, expand and operate based on best international practices. The ministry will consolidate the gains made in price deregulation by commencing deregulation of transportation and ensure profitability and efficiency in the Downstream.
The importation, supply and distribution of petroleum products have more room for efficiency. As Ghana positions itself to be a petroleum hub in the sub region, increased investment in various forms of infrastructure will be reacquired and encouraged to enable the country significantly improve efficiency in providing petroleum products across the sub region. Regulations will also be put in place to create the enabling environment for market forces to compete and create the sub regional hub for petroleum products.
03 — Downstream
A deregulated market, primed to become a sub-regional hub.
The downstream subsector covers the importation of crude oil and finished products, refining, storage, transportation (road, rail, lake and ocean), marketing and sale of petroleum products. The market has been deregulated and operates on international best practice.
Downstream value chain
Step 01
Importation
Crude & finished products
Step 02
Refining
Local processing capacity
Step 03
Storage
Strategic reserves
Step 04
Transport
Road, rail, lake & ocean
Step 05
Marketing
Retail across the sub-region
Deregulation wins
Targets achieved by the Deregulation Policy
Removal of restrictions on the establishment and operation of petroleum infrastructural facilities.
Removal of restrictions on the importation of crude oil and finished petroleum products.
Full liberalisation of petroleum product pricing.
Looking ahead
Consolidating the gains — and building the hub.
The Ministry will consolidate the gains of price deregulation by commencing the deregulation of transportation — driving profitability and efficiency across the downstream.
As Ghana positions itself as a petroleum hub in the sub-region, further investment in infrastructure will be encouraged, and regulations will create the enabling environment for market forces to compete.
04 — Legal & regulatory
The legislation underpinning transparent management.
The National Electrification Scheme (NES) was instituted in 1989 with the policy objective of reliable electricity for every corner of Ghana. From roughly 20% access in 1990, the country has climbed to the highest access rate in Sub-Saharan Africa — and is pushing toward universal coverage.
GNPC Law, 1983
PNDCL 64