Government proposes cut in GNPC’s carried interest in petroleum agreements from 15% to 10%

The government is proposing to reduce the Ghana National Petroleum Corporation’s (GNPC) initial carried interest in petroleum agreements from 15% to 10% under a package of reforms aimed at repositioning Ghana’s petroleum sector to attract new investment.

Energy and Green Transition Minister John Abdulai Jinapor announced the proposed adjustment during his keynote address at the 2026 Local Content Conference and Exhibition.

The proposal is one of several changes the government intends to introduce to the country’s petroleum fiscal and regulatory framework. Others include a three-tier sliding-scale royalty regime based on water depth and the replacement of signature bonuses with commerciality bonuses.

The government is also proposing to replace the Additional Oil Entitlement with an R-factor-based Additional Petroleum Tax, while extending the tax-loss carry-forward period available to petroleum operators from five to ten years.

The proposed reforms further include extending petroleum agreement durations from 25 to 30 years, as well as allowing longer exploration periods and more flexible relinquishment arrangements for frontier and ultra-deepwater blocks.

Mr Jinapor said the broader objective was to attract new investment and support the transformation of the economy through the petroleum sector. He stressed that “Local content is about economic transformation,” pointing to the need for policies that deliver greater economic benefits from the country’s natural resources.