Ghana to sell more oil and gas blocks to boost revenue, says Egyapa Mercer

The deputy energy minister Andrew Kofi Egyapa Mercer has revealed that Ghana will soon be selling more exploration rights to boost its oil and gas production as part of moves to avoid leaving valuable fossil fuels in the ground.

According to Mercer, the plan is to also generate enough revenue to fund the country’s energy transition as Ghana recovers steadily from its worst economic crisis in decades after securing a US$3bn IMF relief package in May.

“For any investor to look at a temporary hiccup as a basis for decisions in Ghana I think would be making a mistake,” Reuters quoted Mercer as saying on the margins of a conference during the Singapore International Energy Week.

“Post-Russia, we have all recognised the need for energy security. And it’s important that we are not caught pants down,” he added, referring to Russia’s invasion of Ukraine in February 2022.

Mercer said Ghana is marketing oil and gas blocks including both new acreages and fields relinquished by ExxonMobil (US).

“The plan really is that we do not intend to get any of our assets stranded. (As) all the commitments that the West with respect to the Paris agreements have never been met, so it’s important for us to fund our own transition or at least a significant part of it,” he said in reference to international agreements on combatting global warming.

Currently, Ghana produces 160,000-170,000 barrels per day (bpd) of crude oil and about 325mn standard cubic feet per day (scfd) of natural gas.

Sankofa, a major gas field in Ghana and part of the Offshore Cape Three Points (OCTP), has boosted gas output to 235 million scfd from 210 million scfd after some enhancement programmes.

Currently, about 60% of Ghana’s power is generated from natural gas, 5% from heavy oil and the rest is hydropower and solar.