What measures have been taken to ensure that Ghana will become a major exporter of oil and power by 2015 and 2018? What action still needs to be taken to achieve this target?

Energy is a critical component of Ghana’s economic development. A recent study identified access to credit and energy as two key constraints to future economic growth. Ghana experienced a major power crisis in 2006-2007, which reduced Ghana’s GDP by 1%. To have a robust system, the Ministry of Energy has introduced a business-focused policy for the export of electricity to neighboring African countries. It has also created structured IPP and PPP models to encourage private sector investment in Ghana. To ensure the private sector remains the operator, the government provides assistance to companies by taking an equity stake.

There have been more than 40 discoveries in Ghana since the Jubilee Fields discovery. The Ministry of Energy is working with IOCs to develop commercial discoveries. Tullow is working on the TED project with the Ministry of Energy, which combines three different discoveries to produce 120,000 barrels of oil equivalent per day. Kosmos has made four different discoveries that are estimated to produce an additional 120,000 barrels of oil equivalent per day. These discoveries will ensure that future oil production in Ghana will be sustained. Eni and Vitol have made a discovery of 1.6 trillion cubic feet of recoverable gas reserves, which will be fast tracked to enhance power export.

What initiatives is the government creating to support investment throughout the value chain from upstream, downstream, and generation?

The government supports independent power producers by providing easy access to land and basic infrastructure. Companies that choose to work with the government through the PPP model with the Ministry of Finance can agree on what percentage of equity the government will take and receive help if debt components are necessary. The government has been encouraging transmission companies to take loans within Ghana. The cost of transmission should not be a significant component in the tariff. The Ministry of Energy is working to make the pass-through tariff as low as possible, which ultimately makes the tariff affordable for the end-user. The Ministry of Energy is also working with private financers who are willing to invest in facilities.

How can the Ministry of Energy work with other key stakeholders to empower local Ghanaians to participate in Ghana’s oil and power development?

Ghana has been successful in the power sector, with three different local companies manufacturing cables and conductors. The government has taken an $80 million local facility to produce all the required conductors for 2012. International contractors use their own experienced supervisors to ensure that projects meet specific requirements, although local construction contractors are used to complete projects. The legal framework is being established, and the Ministry is working with the private sector to train local Ghanaians. The Tullow scholarship program accepted 24 students in 2011, which increased to 50 students in 2015. The students were given the opportunity to complete their Masters Degree in different areas, and these students will return to Ghana to work in the industry. The Ministry of Energy has finished the Local Content Policy and the Implementation Structure and Guidelines and is working with the Norwegian government to develop legal frameworks for accidental work with local people.

As we wrap up this discussion, can you provide a final message for our readers regarding Ghana’s future development in the energy and petroleum sectors?

Ministry of Energy Representative: Absolutely, the Government of Ghana is fully committed to working hand in hand with investors to establish mutually beneficial agreements. We want to assure all investors that Ghana will uphold its integrity and strive to banish the misconception that Africa is a corrupt continent. We extend a warm welcome to all investors who are willing to respect our laws and our people. Our priority is to create employment opportunities for the growth of Ghana’s economy, and it is crucial for investors to adhere to the same environmental standards and regulations as they would in their own countries.

We believe that Ghana is well-prepared to set the pace for the entire African continent in terms of energy and petroleum sector development. Our goal is to foster an environment that attracts foreign investment and ensures that all stakeholders, including the government and investors, benefit from these partnerships. We understand the importance of working collaboratively to achieve sustainable development and progress, and we are fully committed to this cause.