Ghana’s crude oil production has risen by 30% after five consecutive years of decline. This significant rebound marks a crucial turnaround for the nation’s energy sector.
The recovery stems from renewed development activities, particularly following a US$2 billion memorandum of understanding signed in 2025 with Kosmos Energy. This agreement covers the Jubilee and Tweneboa-Enyenra-Ntomme (TEN) fields, extending their licences until 2040. The deal aims to stimulate further investment and increase oil production.
This production increase is vital for Ghana’s broader economic stability and energy security agenda. Sustained oil production contributes significantly to government revenues, impacting public finance and the national budget. The agreement also seeks to improve the supply of affordable natural gas for domestic electricity generation, addressing a key energy challenge.
Minister of Energy and Green Transition, John Abdulai Jinapor, confirmed the 30% production increase. Speaking at African Energy Week 2026, Mr. Jinapor credited the recovery to the implementation of the US$2 billion agreement. He noted that the government had approved a revised development plan for the Jubilee field, with work already commencing.
The revised development plan for the Jubilee field includes drilling up to 20 additional wells. Kosmos Energy’s operational updates indicate another drilling campaign of up to 10 wells planned for the Jubilee partnership in 2027-2028. This campaign is set to begin in mid-2027. Kosmos Energy reported an average gross production of approximately 72,000 barrels of oil per day from the Jubilee field in the second quarter of 2026. Two new wells, J76 and J77, came online in June and July, respectively, contributing to the increased output. Kosmos Energy has also maintained a group capital expenditure budget of US$350 million for 2026, demonstrating continued commitment to investment.
Beyond crude oil, the agreement is designed to bolster Ghana’s domestic gas supply. Kosmos Energy Chief Executive Officer Andy Inglis explained that licence extensions provide the long-term certainty needed for further investment, especially in technology and gas development. Mr. Inglis stressed the importance of affordable natural gas for consumers and businesses, linking energy security with economic accessibility.
Mr. Jinapor suggested the Jubilee agreement could serve as a model for other upstream petroleum sector investments. He stated that the government actively works to build investor confidence through mutually beneficial agreements and reforms. These reforms aim to make the sector more competitive globally. Ghana already has agreements with Chevron and is engaging with Shell and CNOOC for increased investment. Reforms to the country’s petroleum fiscal regime are also in progress to improve the investment climate. These proposed reforms have the backing of both the Energy and Finance Ministers and are moving towards Cabinet and Parliament for approval. Talks with Petrobras have advanced, with both parties considering finalising an agreement. The government is also working towards an agreement with Chevron, subject to parliamentary approval.
This renewed engagement with existing and prospective operators is part of a wider government effort. The goal is to reverse the decline in production, attract fresh capital, and solidify Ghana’s position as an attractive investment destination in the upstream petroleum sector. Increased oil production can lead to higher export earnings, strengthening the Ghana cedi and improving the country's balance of payments. This positive trend could also create more jobs within the energy industry and related sectors, contributing to overall economic growth and stability for Ghanaians.