GUPC advocates for competitive environment for petroleum development
“If industry and government could deepen their collaboration, Ghana would be well on its way to sustainable development, spurred on by increased proceeds from our crude oil and the harnessing of domestic gas for the energy needed to transform our economy into a developed one”.
The Ghana Upstream Petroleum Chamber (GUPC) has unveiled its energy transition position paper to government as the country prepares along the path of energy transition.
The Ghana Upstream Petroleum Chamber is the umbrella organisation representing explorers, oil and gas producers, and indigenous suppliers and manufacturers of the industry in Ghana.
The chamber’s paper makes three main recommendations.
- Incentivize exploration and development to increase production.
- Enhance, gas infrastructure and optimize domestic gas utilization.
- Seize opportunities in the emerging decarbonization solutions.
In an address at the first annual oil and gas conference, organised by GUPC under the theme “transitioning to a low carbon economy”, the CEO of the Chamber, David Ampofo said there was still a role for oil and gas in the context of the energy transition.
“If industry and government could deepen their collaboration, Ghana would be well on its way to sustainable development, spurred on by increased proceeds from our crude oil and the harnessing of domestic gas for the energy needed to transform our economy into a developed one”.
He said the conference is happening at a critical time where inaction is not an option.
Ampofo said the world is facing unprecedented challenges – war, inflation, and energy insecurity and of course climate change.
“Ghana can play a growing role in ensuring energy security but the investment has to be right. Stability is crucial to ensure that Ghana can attract the vast investments required”, he stated.
The CEO of the GUPC called for government to extensively collaborate with the local industry to harness gas for massive economic transformation.
“I know that if industry and government could deepen their collaboration, Ghana would be well on its way to sustainable development, spurred on by increased proceeds from our crude oil and the harnessing of domestic gas for the energy needed to transform our economy into a developed one.”
He cited emerging petroleum nations such as Guyana and Namibia and advocated the creation of an open, transparent, competitive and inviting environment for further oil and gas exploratory activities in Ghana.
“It’s all about discoveries that actually enter production. We have 14 active petroleum agreements with only three (3) producing fields. The Jubilee, TEN and Sankofa partners have held the fort. Why only three producing fields Unfortunately, the cost of an exploration well has increased by around 140% since pre-pandemic times.”
“As risky as it can be, about 1-in-7 exploration wells is successful and we can’t take things for granted” Ampofo outlined.
The CEO of the GUPC said Ghana must grasp the available and emerging decarbonization opportunities as the country transitions to a greener future.
Source: norvanreports.com
