Executive Director of the Africa Centre for Energy Policy (ACEP), Ben Boakye, has cautioned that Ghana should refrain from venturing into state-led oil production, citing severe governance lapses and inefficiencies at the Ghana National Petroleum Corporation (GNPC).
Speaking during the NorvanReports, Economic Governance Platform (EGP) and Ghana Anti-Corruption Coalition (GACC) X Space Discussion themed “Beyond the Headlines: Technical Evidence, Financial Exposure and Government Options on the Springfield WCTP-2 Block” on Sunday, December 7, 2025, Mr Boakye disclosed that more than $1.5 billion allocated to GNPC since 2010 to support exploration and drilling activities has not yielded a single well.
According to him, the Corporation’s persistent governance deficiencies make it unsafe for the state to assume a frontline operational role in oil exploration and production.
“From investment and technical understanding of what has happened in this space, coupled with the politics, mismanagement and inefficiencies, I would be really restrained from even advising government to ever get into hardcore oil production today,” he said.
He noted that portions of Ghana’s carried interest from oil-producing partners — including Tullow, Kosmos and ENI — have been channelled to GNPC over the years to support its development agenda. However, he said the Corporation has failed to utilise the funds for core exploratory purposes.
Mr Boakye stressed that over the past decade, GNPC has not drilled a single well, despite receiving over $1.5bn to undertake such activities. Instead, he alleged, the funds have been used to create layers of management positions and recruit politically connected individuals who bring no value to the organisation.
He further questioned the Corporation’s expenditure of $150 million on 2D seismic data acquisition in the Voltaian Basin — an amount he deemed excessive compared to similar projects in other jurisdictions.
“What did they do with $150 million acquiring 2D data in this country? They just funnelled money that could have been used to advance the development of this country,” he stated.
Mr Boakye also raised concerns about a 7% asset interest acquired by the state during an earlier transaction involving Aker. He alleged that the interest held by GNPC’s subsidiary JOHL in Jersey, continues to be managed outside the petroleum revenue governance framework, with neither taxes nor dividends remitted to the national budget.
“If GNPC even produces oil today, the budget is not going to receive that money. They will be deciding what to do with the money,” he emphasised.
He warned that without addressing the governance gaps at GNPC, a state-led approach to oil production risks significant financial losses and will undermine national revenue prospects.
Government’s Interest in WCTP-2
The discussion comes as the Ministry of Energy and Green Transition pursues a resolution to the longstanding impasse over the West Cape Three Points Block 2 (WCTP-2), operated by Springfield Exploration and Production Ltd (SEP).
The Ministry recently confirmed that GNPC and its upstream subsidiary, GNPC Explorco, are in advanced talks with Springfield on a potential government-led takeover of SEP’s interests in the block.
The WCTP-2 Block houses the Afina oil discovery, estimated to contain recoverable resources of over 1.5 billion barrels, making it one of the most significant undeveloped hydrocarbon assets in Ghana.
Mr Boakye, however, cautioned that unless GNPC’s governance, accountability and operational effectiveness are overhauled, any such takeover may expose the state to substantial financial and operational risks.
Source: energycrossroad.com
