Government proposes sweeping reforms to Ghana’s petroleum fiscal regime

The government is proposing a major overhaul of Ghana’s petroleum fiscal framework, including changes to royalty payments, tax arrangements and the financial interests of the Ghana National Petroleum Corporation (GNPC), as part of efforts to attract fresh investment into the oil and gas industry.

Energy and Green Transition Minister Dr John Abdulai Jinapor announced the proposed reforms in his keynote address at the 2026 Local Content Conference and Exhibition, where he outlined measures intended to make the country’s petroleum sector more competitive and attractive to investors.

Among the key proposals is the introduction of a three-tier sliding-scale royalty regime based on water depth, alongside a reduction in GNPC’s initial carried interest from 15% to 10%.

The government also intends to replace signature bonuses with commerciality bonuses, linking payments more closely to the commercial prospects of petroleum discoveries.

Other proposed changes include replacing the Additional Oil Entitlement with an R-factor-based Additional Petroleum Tax, extending the tax-loss carry-forward period from five to ten years, and increasing the duration of petroleum agreements from 25 to 30 years.

The government is also considering longer exploration periods and more flexible relinquishment provisions for frontier and ultra-deepwater acreage.

Dr Jinapor said the reforms form part of efforts to strengthen the investment environment, while placing local content and economic transformation at the centre of the country’s petroleum development agenda.