President John Mahama has raised concerns over what he describes as a “toxic environment” inherited from the previous administration in Ghana’s oil and gas sector, which he claims led to significant disinvestment and a steady decline in production.
Speaking at the Africa CEO Forum Annual Summit in Côte d’Ivoire, under the theme Oil and Renewable Energy – A Dual Bet for Ghana’s Future, President Mahama said the mismanagement of key relationships within the oil industry contributed to an average 7 per cent annual drop in production.
“I think the environment got a bit toxic. I don’t know for what reason. The government didn’t seem to prioritise the sector,” he noted. “So there was a lot of disinvestment. They had constant squabbles with the oil investors. For instance, with Talos, there was a dispute over taxes. It was something they could have resolved. TALO went to arbitration and won before we came into office. We are now engaging with TALO to resolve the remaining issues. And that’s how it should be done.”
He also cited a long-running dispute involving Eni and a local company, in which the former government reportedly sided with the local firm and pushed for unitisation — a move that led to complex legal issues. “ENI was held in contempt and had to move all their expatriate management to Côte d’Ivoire for several years. As a result, we saw production decline by about 7 per cent annually. Oil and gas output went down,” President Mahama explained.
However, he said the situation has now stabilised, with investor confidence rebounding and fresh activity in the sector. “Investor confidence has returned. New commitments are being made to produce more gas and oil. Eni are back and drilling again. Early signs indicate we may discover substantial quantities of oil and gas.”
On the energy sector’s broader financial challenges, President Mahama disclosed that his administration inherited close to $2.5 billion in debt owed to Independent Power Producers (IPPs), gas suppliers, and other stakeholders.
“When we returned to the office, we found a messy energy sector with debts totalling nearly $2.5 billion. The previous government began the process, but we are continuing it. We’re working on renegotiating and restructuring the debt. We have strategies in place and I’m confident that by the end of this year or early next year, we’ll be able to resolve the issue and satisfy all stakeholders.”
He stressed the need to address inefficiencies across the entire energy value chain, stating, “In cleaning the slate, we must also consider the entire value chain.”
On the wider economic outlook, President Mahama said his government remains focused on restoring macroeconomic stability and improving business confidence. “During our last IMF review, we reached a staff-level agreement due to the adjustments we’d made. That has helped boost business confidence,” he said. “People believe we’re on the right path. So far, so good. Easy does it.”
When asked about the pressures of public expectation and whether he was losing sleep over economic challenges, he replied: “The focus is on stabilising the macroeconomy, building confidence, and attracting investment. I think we’re on the right path. It doesn’t keep me up at night — not yet. One just needs to keep a steady hand on the wheel to stay on course.”
He added that the public has so far shown patience: “Fortunately, we’re still in what I call the honeymoon period. People are being patient. I’m hoping we can make enough progress before that patience wears thin.”
He concluded on a confident note: “So far, so good. I sleep well. No sleepless nights — not yet. There aren’t many leaders who say they sleep well. But I do for now. Once the ship is on course and you’re doing the right things, I believe we’ll be fine.”
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