Latest news with #Mahama
Business Insider
15-05-2025
- Business
- Business Insider
Ghana's Mahama courts oil investors, pushes for aggressive crude oil extraction
Ghana is urging investors to help boost oil production as the global push for decarbonization threatens to leave fossil fuel assets stranded. Ghana is encouraging increased oil production amidst global emphasis on decarbonization. President John Mahama highlighted the decline in oil output and the need for renewed investment during the Africa CEO Forum. Despite calls for expanding oil drilling, Ghana continues to uphold commitments to clean energy targets. Ghana is urging investors to help boost oil production as the global push for decarbonization threatens to leave fossil fuel assets stranded. President John Mahama made the appeal during the Africa CEO Forum held on Tuesday in Abidjan, Ivory Coast. 'Oil is in transition and so anybody who has any assets should be pumping like there's no tomorrow,' he said, signalling Ghana's readiness to welcome investors with open arms. 'We're rolling out the red carpet for anyone ready to drill.' Oil output declines Ghana's oil production has declined steadily over the last five years, largely due to limited investment in new exploration and field development. According to the Public Interest and Accountability Committee (PIAC), Ghana's oil output fell to 48.3 million barrels in 2024, slightly below the 48.2 million barrels produced in 2023, and well down from a peak of 71.4 million barrels in 2019. Mahama attributed the decline in output to regulatory uncertainty, which he said drove some major players away. 'ENI was held in contempt and they had to move all their expatriate management to Cote d'Ivoire,' he noted, adding that now the company was 'back and they are drilling again'. Mahama's call to action echoes a growing sentiment among oil-producing nations, including recent appeals by U.S. leaders for increased domestic output. OPEC, too, has raised production levels, contributing to a roughly 13% drop in Brent crude prices this year, now hovering around $65.3 per barrel, per Bloomberg. Elected in December, Mahama has pledged to revive Ghana's struggling economy, which is still reeling from a debt crisis and rising cost of living. Reflecting on past government priorities, he said, 'The environment got a bit toxic. The government did not seem to prioritise the sector.'
Yahoo
14-05-2025
- Business
- Yahoo
Ghana to reduce $2.5bn debt to power producers by year end
Ghana's Government has announced its intention to significantly reduce the country's $2.5bn (31.27bn cedis) debt owed to independent power producers and gas suppliers by the end of the year, according to a Reuters report. President John Dramani Mahama expressed confidence in addressing the financial challenges facing the power sector during a forum in Ivory Coast. Last year, Ghana reached a restructuring agreement with independent power producers to manage approximately $1bn of legacy debt. Despite this, the nation's arrears have continued to impact the economy, particularly since President Mahama began his second term in January. President Mahama acknowledged inefficiencies within the state-owned utility, Electricity Company of Ghana (ECG), which faces a revenue collection loss of around 40%. To improve the situation, he announced plans to involve the private sector in the billing process. Mahama was quoted as saying: 'People are queuing up, I said they should wait. We are going to do expressions of interest,' indicating a cautious approach to selecting private partners for this initiative. The cabinet is yet to decide on the structure of this partnership, which may involve one or multiple entities, with an emphasis on local participation. President Mahama also encouraged companies to expedite oil and gas extraction, citing the global energy transition. 'Oil is in transition and so everybody who has any assets should be pumping like there is no tomorrow... I would lay a red carpet to anybody who wants to drill and pump oil to do so,' he added. In related news, the Mission 300 initiative, which aims to electrify 300 million Africans by 2030, secured more than $8bn in new funding commitments during the Africa Energy Summit in Dar es Salaam, Tanzania. "Ghana to reduce $2.5bn debt to power producers by year end" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
14-05-2025
- Business
- Business Insider
Ghana plans to revive its national airline in partnership with the UAE
Ghana is actively exploring the re-establishment of a national airline with technical assistance from the United Arab Emirates (UAE), following high-level diplomatic discussions in Abu Dhabi. Ghana is pursuing the revival of a national airline with assistance from the UAE, revealed during diplomatic discussions in Abu Dhabi. The initiative aligns with President Mahama's development priorities and includes employment opportunities in the UAE. The discussions have paved the way for increased investment opportunities in Ghana from UAE-based companies. The revelation was made by Ghana's Minister for Foreign Affairs and Regional Integration, Samuel Okudzeto Ablakwa, in a Facebook post on Tuesday, 13 May 2025. The announcement came on the heels of a two-day official visit to the UAE, undertaken at the invitation of the Emirati government. According to Mr Ablakwa, the bilateral talks included an agreement on UAE support for Ghana's plans to launch a new national carrier. He emphasised that this initiative forms part of the current government's development priorities under President John Dramani Mahama. 'We also discussed two priority areas of President Mahama's government — labour export opportunities for Ghanaian youth in the UAE and technical assistance for establishing a new national airline,' Mr Ablakwa stated. Engagements with key UAE officials The Ghanaian delegation met with several senior officials, including His Highness Sheikh Abdullah bin Zayed Al Nahyan, the UAE's Deputy Prime Minister and Minister of Foreign Affairs; Sheikh Shakhboot bin Nahyan Al Nahyan, Minister of State; and Lana Nusseibeh, Assistant Minister for Political Affairs. Ministers responsible for foreign trade and investment were also present during the talks. Mr Ablakwa confirmed that Ghana and the UAE had agreed to commence formal political consultations — a significant milestone marking the first such engagement between the two nations. Ghana has made multiple unsuccessful attempts to revive its national airline since the collapse of Ghana Airways in 2004 and the later demise of Ghana International Airlines in 2010. While numerous proposals have been tabled over the years — involving both public and private entities — none have materialised. However, the Mahama-led government has renewed its commitment to restoring a national carrier. On 8 May 2025, the government inaugurated a 10-member National Airline Task Force to oversee the revival process. Mandate of the National Airline task force The newly established task force has been tasked with developing a robust business model, coordinating with international technical and strategic partners, and securing regulatory approvals. Additionally, it will supervise operational areas such as human resource planning, aircraft procurement, and route development. The task force is chaired by Charles Asare, a former Managing Director of the Ghana Airports Company Limited. Other members include experienced aviation professionals, ex-officials of the Ghana Civil Aviation Authority, and Joyce Bawa Mogtari, who serves as a presidential advisor. Mr Ablakwa also reported that the diplomatic engagements had opened the door to fresh investment opportunities from UAE-based companies. Key sectors identified for collaboration include renewable energy, artificial intelligence, education, healthcare, aviation, and defence. He noted that these opportunities are aligned with President Mahama's renewed vision for Ghana's economic transformation, stating that the president is 'sending a clear message to the global investment community that Ghana is open for business again.'
eNCA
14-05-2025
- Business
- eNCA
Ghana president tells firms to pump oil 'like there's no tomorrow'
ABIDJAN - Ghana's President John Mahama urged global firms to ramp up crude oil production in the West African nation before the global shift to renewable energy renders the resource worthless. He warned that Ghana risks seeing its oil resources stuck in the ground if drilling is not fast-tracked while demand still exists. Many countries have pledged to reduce their use of oil and gas to meet international targets for reducing carbon emissions that drive deadly climate change. "Oil is in transition. Everybody who has any assets should be pumping like there's no tomorrow," Mahama told the Africa CEO Forum in Abidjan, Ivory Coast. "I will lay a red carpet to anybody who wants to drill and pump oil because in the next decade or two, the world will have made a transition to renewables." Mahama, who took office in January, accused the previous government of Nana Akufo-Addo of stalling oil exploration through regulatory bottlenecks and disputes with key investors such as British-based company Tullow and ENI of Italy. He said the sector suffered "a lot of disinvestment" as the previous government had "squabbles" with Tullow. Ghana's petroleum sector has seen a steady decline in output, according to the statutory body that monitors petroleum revenues in Ghana, the Public Interest and Accountability Committee. It said crude oil production dropped to 48.25 million barrels in 2023 from 71.44 million in 2019 largely due to reduced investment in new wells. Mahama blamed regulatory uncertainty for the exodus of some key players. "ENI was held in contempt and they had to move all their expatriate management to Cote d'Ivoire," he noted, adding that now the company was "back and they are drilling again". Ghana's major offshore oil assets include the Jubilee Field, operated by Tullow Oil, as well as the TEN and Sankofa fields, with players including Kosmos Energy, PetroSA, and the state-owned GNPC. While calling for aggressive oil drilling, Mahama stressed Ghana must not abandon its clean energy goals.
Arabian Post
13-05-2025
- Business
- Arabian Post
Ghana Targets Energy Sector Debt Reduction Amid Structural Reforms
Ghana is undertaking significant measures to reduce its $2.5 billion debt owed to independent power producers and gas suppliers by the end of 2025, as announced by President John Dramani Mahama. This initiative is part of a broader strategy to stabilize the country's energy sector and ensure consistent electricity supply. The debt, which has been a persistent issue, poses a substantial threat to Ghana's economy and energy security. President Mahama emphasized the urgency of addressing this financial burden to prevent further economic strain. He highlighted inefficiencies within the Electricity Company of Ghana , noting that the utility experiences approximately 40% in commercial and technical losses, undermining its financial viability. To enhance revenue collection and operational efficiency, the government plans to involve the private sector in electricity billing and metering processes. A pilot partnership between ECG and Enclave Power Limited has demonstrated success, achieving 99% revenue collection and near-uninterrupted power supply. This model is being considered for broader implementation to improve the sector's financial health. The administration is also focusing on structural reforms, including the establishment of a single revenue collection account and the enforcement of the Cash Waterfall Mechanism to prioritize debt payments. These measures aim to eliminate financial leakages and ensure that funds are appropriately allocated to settle outstanding debts. In addition to financial restructuring, the government is advocating for increased utilization of domestic gas for power generation to reduce reliance on expensive crude oil imports. This shift is expected to result in significant cost savings and enhance energy sustainability. President Mahama has also called for maximizing oil and gas extraction before the global transition to renewable energy intensifies. He expressed openness to investors interested in drilling and production, emphasizing the importance of leveraging existing resources during this transitional period. See also Meta Faces Regulatory Showdown in Nigeria
