Investment in Oil & Gas


Investments in Oil & Gas, and Energy

The discovery of oil and gas in commercial quantities offshore Ghana in recent years has generated a lot of interest in the oil and gas sector. The Petroleum (Exploration and Production) Law, 1984 (PNDCL 84), sets out the policy framework and describes the role of the Ministry of Energy, which regulates the industry. The Ghana National Petroleum Corporation (GNPC), which is empowered to undertake petroleum exploration and production on behalf of the Government, is authorized to enter into joint ventures and production-sharing agreements with commercial organizations. GNPC was established under the GNPC Law of 1983 (PNDCL 64).

Between 2002 and 2008, 12 acreages were awarded to 10 oil and gas companies for petroleum exploration and production in Ghana. Significant discoveries have been made by a number of the exploration drillings that have been taken place offshore Ghana. Currently investment opportunities exist in the gas sector and the entire downstream sector of the industry.

Under the sub-sector of electricity, prospective independent power producers are being welcomed for the development and operation of additional power generation units under very clear policy frameworks. Ghana currently has an installed capacity of 1925 MW, representing a hydro and thermal mix and an additional 1615 MW capacity of generation is also underway. Of the generation capacity under development a significant number represents IPPs. The policy goal of the Government of Ghana is to have a minimum generation capacity of 5,000 MW by 2015 and so IPPs are being aggressively incorporated in the programme to assure energy security. It needs mentioning that because of the West Africa Power Pool Project, which links the grid of Ghana and a number of energy deficit neighbouring countries, virtually all energy generated has a ready market in the sub-region.

In consonance with government commitments to ensure transparency in the oil and gas industry, the under-listed simplified steps have been designed as a guide to prospective investors in the industry.

Step 1: Ministry of Energy (Receipt of Letter of Interest)
& Applicant invited to make presentations
Step 2: (GNPC) Applicant inspects on the available blocks/contract area data at the GNPC’s data room
Step 3: (Ministry of Energy/GNPC) Applicant picks up forms
Step 4:  Ministry of Energy (Receives application with an application fee of UD $7500)
Step 5: Ministry of Energy & GNPC
Vetting and Evaluation of the Application
Step 6: Government’s Negotiation (MoEn, GNPC, AG’s Dept. MoFEP)
Negotiate a Petroleum Agreement with the applicant
Step 7: Cabinet Petroleum Agreement sent to Cabinet
Step 8:  Parliamentary Petroleum Agreement sent for Parliamentary Ratification
Step 9: Petroleum Agreement becomes effective


Step 1:

Registered company in Ghana

Step 2: Business Plan
Step 3: Obtain Environmental Permit from EPA
Step 4: 

Bank guarantee favor from TOR
Bank guarantee in favor of CEPS
Evidence of at least 50% local participation in the company
Meet requirement for the number of stations to be constructed

Step 5:

Provisional license valid for 2 years, issued by NPA

Step 6: Construction of at least 5 service stations
Step 7: Granting of OMC license by NPA


The provisional license does not allow applicants to lift products from Tema Oil Refinery, the depots or any other refinery but grants permit to construct service stations.

For additional information you may contact:

The Ministry of Energy -

The Ghana National Petroleum Corporation -

The Volta River Authroity-

The Electricity Company of Ghana -

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