Ghana’s oil industry has become one of the country’s most important economic drivers since the discovery of commercial quantities in 2007. From the pioneering Jubilee Field to the more complex TEN and Sankofa projects, the sector has reshaped national revenue, energy supply, and global investment interest. Yet, many Ghanaians still struggle to understand how the oil sector operates, which companies are involved, and how revenue is generated and used.
This editorial by Accra Street Journal breaks down Ghana’s upstream oil sector in clear, simple language, explaining how the three major fields work, the state institutions involved, and the broader economic impact. It is designed to serve as a long-term reference guide for students, researchers, business owners, journalists, and citizens.
1. Overview of Ghana’s Oil Industry
Ghana’s oil sector is part of the upstream petroleum industry, which covers:
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exploration
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drilling
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production
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transportation of crude oil and natural gas
The discovery of Jubilee Field—one of the largest oil finds in West Africa in the last two decades—marked the beginning of large-scale commercial production in 2010. Today, Ghana’s oil industry consists of three producing fields:
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Jubilee Field
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TEN Fields (Tweneboa, Enyenra, Ntomme)
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Sankofa-Gye Nyame Field (SGN)
Together, these fields produce between 160,000–200,000 barrels of oil per day on average, depending on global prices, investments, and reservoir conditions.
Key international partners include:
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Tullow Oil (UK)
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Kosmos Energy (USA)
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ENI (Italy)
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Anadarko Petroleum (USA)
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Ghana National Petroleum Corporation (GNPC) – Ghana’s state-owned player
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Petroleum Commission – the local regulator
2. The Jubilee Field — Ghana’s First Major Discovery
Location and Discovery
The Jubilee Field is located offshore in the Western Region, about 60km off the coast. It straddles two blocks—Deepwater Tano and West Cape Three Points.
It was discovered in 2007 by Kosmos Energy, and production began in December 2010, just three years later—an unusually fast timeline in global petroleum development.
Key Operators and Partners
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Tullow Oil – Operator
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Kosmos Energy
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Anadarko Petroleum
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GNPC
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PetroSA (South Africa)
Production and Technology
Jubilee produces both associated gas and crude oil. Production is managed through an FPSO (Floating Production Storage and Offloading) vessel called:
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FPSO Kwame Nkrumah
It has the capacity to process up to 120,000 barrels of oil per day and store about 1.6 million barrels.
Economic Significance
Jubilee accounts for roughly 50% of Ghana’s total oil output.
It was the field that truly placed Ghana on the global energy map.
3. The TEN Fields (Tweneboa – Enyenra – Ntomme)
Overview
The TEN Project is the second major oil development in Ghana after Jubilee. It is located in the Deepwater Tano block, close to Jubilee.
Partners
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Tullow Oil – Operator
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Kosmos Energy
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Anadarko
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GNPC
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PetroSA
FPSO
Production is carried out via:
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FPSO John Evans Atta Mills
Production Flow
Initial production began in August 2016, with first oil achieved on schedule despite maritime boundary disputes with Côte d’Ivoire.
Today, TEN produces significantly less than Jubilee due to:
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complex reservoir structures
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technical challenges
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natural field decline
However, it still contributes thousands of barrels per day to Ghana’s daily output and remains a vital national asset.
Key Features of TEN
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More complex field formation than Jubilee
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Higher initial costs
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Combination of oil and natural gas
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Significant potential for future gas processing
4. Sankofa-Gye Nyame (SGN) Field — Ghana’s Gas Game Changer
Overview
The Sankofa-Gye Nyame Field (also called OCTP – Offshore Cape Three Points) is Ghana’s first major gas-focused offshore project.
It is operated by:
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ENI (Italy) – Operator
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Vitol (Netherlands)
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GNPC
Why Sankofa Is Different
Unlike Jubilee and TEN, which prioritize oil production, SGN focuses heavily on natural gas.
FPSO
Production occurs via:
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FPSO John Agyekum Kufuor
Contribution to Ghana
Sankofa is responsible for delivering up to 170 million standard cubic feet of gas per day, which directly supports:
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thermal power plants
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national electricity generation
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reduction of heavy fuel oil imports
This field has become essential in Ghana’s shift toward cleaner, cheaper, and more reliable power generation.
Economic Importance
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Reduces Ghana’s power sector fuel costs
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Improves energy security
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Supports domestic industrialization through gas supply
5. How Ghana Earns Money from Oil Production
Ghana benefits from the oil sector through several revenue streams:
1. Royalties
A percentage of the value of oil produced (typically 3–12%).
2. Carried and Participating Interest
GNPC holds equity interest in the fields.
This ensures Ghana receives revenue before and after cost recovery.
3. Petroleum Income Tax
Paid by oil companies after deducting allowable expenses.
4. Surface Rentals
Fees paid by companies for using offshore acreage.
5. Gas Sales
Domestic gas from Sankofa provides cheaper power fuel, reducing government energy subsidies.
6. Stabilization and Heritage Funds
Portions of oil revenue are saved for:
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budget stabilization
These are managed under the Petroleum Revenue Management Act (PRMA).
6. Key Regulatory Institutions in Ghana’s Oil Sector
1. Ministry of Energy
Develops national energy policy and oversees the sector.
2. Petroleum Commission
Regulates upstream activities, licensing, safety, and compliance.
3. Ghana National Petroleum Corporation (GNPC)
State-owned entity responsible for:
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managing Ghana’s commercial interest
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participating in joint ventures
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building national capacity
4. Environmental Protection Agency (EPA)
Carries out impact assessments and environmental monitoring.
5. PIAC (Public Interest and Accountability Committee)
Independent body that monitors petroleum revenue use.
7. How the Price of Oil Affects Ghana’s Economy
Oil is one of Ghana’s top export commodities.
When Global Prices Rise:
When Prices Fall:
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Lower national revenue
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Budget deficits increase
This makes Ghana’s economy sensitive to international markets.
8. Challenges Facing the Oil Sector
Despite its progress, Ghana faces several long-term challenges:
Declining Production
Mature wells in Jubilee and TEN are gradually declining.
High Operational Costs
Deepwater exploration is expensive.
Regulatory and Contracting Delays
Can slow investment.
Maritime Boundary Disputes
TEN previously faced delays due to the Côte d’Ivoire boundary case.
Revenue Leakages
Mismanagement and delayed payments sometimes affect government cash flow.
Limited Local Participation
Ghanaian companies still struggle to meet technical, financial, and safety requirements.
9. The Future of Ghana’s Oil Sector
The next phase of Ghana’s upstream industry will depend on:
✔ New discoveries
Exploration stalled for years but is picking up again.
✔ Enhanced oil recovery
Especially in Jubilee and TEN.
✔ Natural gas expansion
Gas from Sankofa will be critical for power generation.
✔ Local content development
More Ghanaian engineers, welders, and service providers are entering the supply chain.
✔ Global energy transition
As the world shifts toward renewable energy, Ghana must balance oil development with sustainability.
FAQs
1. What is the largest oil field in Ghana?
The Jubilee Field is currently the largest and most productive oil field in Ghana.
2. Which companies operate Ghana’s oil fields?
Tullow Oil operates Jubilee and TEN, while ENI operates the Sankofa-Gye Nyame field.
3. How much oil does Ghana produce per day?
Production ranges between 160,000 and 200,000 barrels per day from all fields combined.
4. What is the role of GNPC in the oil sector?
GNPC holds Ghana’s participating interest and ensures national involvement in petroleum operations.
5. Why is Sankofa important for Ghana?
It supplies the domestic market with natural gas, helping to reduce electricity costs and dependence on fuel imports.
Source: Accra Street Journal
Last Updated on November 29, 2025 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
