Ghana Courts New Oil Investment With Fiscal Reforms and Shell-Chevron Deepwater Deal

Ghana is moving to reset parts of its upstream petroleum framework as it seeks to revive exploration, attract new capital and reverse a decline in oil production.

The government has signalled planned fiscal and contractual reforms while state-owned Ghana National Petroleum Corporation, GNPC, and its exploration arm GNPC Explorco have signed a non-binding memorandum of understanding with Shell and Chevron covering the South Deepwater Tano block.

The development places two issues at the centre of Ghana’s energy strategy: how to make mature and frontier acreage more competitive for international investors, and how to preserve sufficient long-term value for the state as global competition for upstream capital intensifies.

A push to revive exploration

At Africa Oil Week, Ghana outlined investment, exploration and commercial priorities intended to strengthen activity across its petroleum sector. GNPC said the country is focused on advancing exploration and commercialisation while improving the conditions needed to attract credible investors.

The South Deepwater Tano block, which covers about 3,482 square kilometres, contains the Nyankom-1X discovery and sits within an area that has previously drawn industry interest. The memorandum with Shell and Chevron is preliminary, however, and does not amount to a final production agreement or a completed award of participating interests.

That distinction matters. The companies have entered an exploratory commercial process with GNPC and GNPC Explorco, but final equity structures, work commitments and contractual terms would still need to be negotiated and approved.

Fiscal reform enters the equation

Alongside the commercial discussions, Ghana has also indicated that it is reviewing elements of its upstream fiscal framework. Reporting from Africa Oil Week points to possible changes in areas including state participation, petroleum agreement duration and signature bonus structures.

The policy objective is clear: improve Ghana’s competitiveness at a time when oil companies can choose among multiple jurisdictions and when exploration budgets remain highly selective.

For Ghana, the challenge is to strike a balance. Terms that are too rigid may discourage capital, particularly in higher-risk exploration acreage. Terms that are too generous can weaken the state’s ability to capture value from resources that ultimately belong to the country.

Why this matters for Ghana’s economy

Ghana’s oil and gas sector remains an important source of export earnings, fiscal revenue and foreign exchange. Declining output from mature fields therefore has implications beyond the petroleum industry itself.

New exploration and development could support future production, but the economics of upstream investment are increasingly shaped by project cost, regulatory predictability, infrastructure access, tax design and the pace of government approvals.

The involvement of Shell and Chevron is therefore notable, but the more consequential story is the policy environment Ghana is trying to build around prospective investment.

If the reform agenda succeeds, Ghana could strengthen its ability to compete for capital while maintaining a credible state role through GNPC and GNPC Explorco. If it does not, the country risks losing exploration momentum to jurisdictions offering more attractive or predictable commercial terms.

The next test

The South Deepwater Tano memorandum is best understood as an early step rather than a completed investment decision.

The next phase will be more important: whether the parties can convert the preliminary agreement into a commercially viable framework, whether Ghana finalises the proposed fiscal reforms, and whether those changes translate into actual exploration commitments and capital deployment.

For Ghana, the broader question is not simply how much oil remains to be found, but whether the country can design an investment regime that attracts capital without weakening the public value of future discoveries.

Sources

• Ghana National Petroleum Corporation: GNPC outlines investment, exploration and commercial priorities at 2026 Africa Oil Week
• The Energy Year: Ghana signs MoU with Shell, Chevron for South Deepwater Tano block
• The Energy Year: Ghana unveils planned 2026 upstream fiscal reforms
• Reuters: Chevron, Shell sign preliminary agreement with Ghana as country reviews oil and gas terms