The Minister for Energy, John Jinapor, has announced that the government will soon suspend all inactive petroleum agreements whose operators have failed to meet their minimum work obligations within their allocated oil blocks.

Speaking at the opening of the 2025 Petroleum Local Content Conference and Exhibition in Takoradi on Tuesday, November 4, the Minister emphasised that while government remains committed to creating a competitive and investor-friendly upstream petroleum environment, it will not tolerate companies that “hijack” exploration blocks without undertaking any meaningful work.

“We are rolling out measures to make Ghana’s upstream petroleum sector more attractive and efficient.

However, companies that have been awarded blocks but have failed to meet their obligations will have their agreements suspended or revoked,” Mr. Jinapor stated.

The three-day conference, themed “Revitalising Ghana’s Petroleum Exploration and Production Sector: Driving Innovation and Redefined Local Content for a Competitive Energy Economy,” brought together major industry stakeholders, policymakers, and investors from over 25 countries.

Discussions are focused on strategies to restore investor confidence, enhance local participation, and ensure sustainable growth in Ghana’s oil and gas industry.

The Minister attributed the decline in Ghana’s petroleum production to past regulatory bottlenecks and incomplete licensing processes, which have contributed to a 25% drop in production and a 50% decline in revenue.

He, however, expressed optimism that the sector is on a path to recovery, commending the new leadership of the Petroleum Commission for spearheading reforms aimed at restoring transparency and investor confidence.

On her part, Emeafa Hardcastle, the Acting Chief Executive Officer of the Petroleum Commission, outlined new strategies being implemented to make Ghana’s petroleum sector more business-friendly and globally competitive.

She explained that the Commission is redefining local content policies to promote greater collaboration and partnerships based on in-country value creation rather than focusing solely on indigenous equity participation.

“Our goal is to ensure that local content delivers tangible economic benefits to Ghanaians through domestic value addition, technology transfer, and employment,” Mrs. Hardcastle said.

She further disclosed that Ghana is in advanced stages of signing a new petroleum agreement with Shell, signalling renewed investor interest in the country’s oil and gas industry.

The Energy Minister reaffirmed the government’s commitment to the Reset Agenda under President John Dramani Mahama, emphasising that the sector’s revitalisation will be anchored on accountability, innovation, and sustainability to secure a resilient and future-ready energy economy for Ghana.