Eni and Partners Restart Offshore Drilling in Ghana, Ending Industry Dry Spell

After years of declining crude oil production and a prolonged lull in drilling activity, Ghana’s upstream sector is showing signs of revival.

Italian oil and gas giant, Eni and its OCTP partners , Vitol and the Ghana National Petroleum Corporation (GNPC) have launched a fresh drilling campaign at Ghana’s Sankofa East 1X Side Track 2.

The move signals renewed investor confidence and a critical push to arrest the country’s falling output.

Located approximately 60 nautical miles off Ghana’s coast near the John Agyekum Kufuor FPSO, the new campaign is part of the broader development plan for the Sankofa field. The operation employs the Deep Value Driller (DVD), a state-of-the-art drillship equipped with advanced automated technology, underscoring the partners’ commitment to leveraging cutting-edge solutions to bolster production.

The Public Interest and Accountability Committee (PIAC) has observed in its reports that in spite of efforts by the Ministry of Energy to attract fresh investments into Ghana’s upstream petroleum industry, no new Petroleum Agreement had been signed since 2018.

According to the Committee, crude oil production declined for the fifth consecutive year in 2024. Production dropped from a high of 71.44 million barrels in 2019 to 48.25 million barrels in 2024 representing a y-o-y decline of 0.01 percent and a five-year average decline of 7.4 percent.

PIAC pointed to several factors contributing to the decline, including the natural maturation of oil fields like Jubilee, TEN, and Sankofa Gye-Nyame, underinvestment in exploration and production, and operational challenges. In response, the Committee has advocated for a multi-pronged strategy focused on economic diversification, sustainable exploitation of petroleum resources, and the promotion of renewable energy.

The initiation of the Sankofa East 1X SideTrack 2 drilling activity reflects a concerted effort by Eni and its partners to arrest the production slump. The project not only aims to unlock additional value from the Offshore Cape Three Points (OCTP) block but also to ensure long-term production sustainability, thereby contributing to Ghana’s energy security.

A statement jointly issued by Eni and partners said in preparation for the drilling campaign, comprehensive stakeholder engagement programs were conducted along Ghana’s coastline. It stated that the initiatives, involving over 800 fishermen and local leaders, were carried out in collaboration with the Environmental Protection Agency (EPA), Petroleum Commission (PC), Ghana Maritime Authority (GMA), Ghana Navy, Fisheries Commission, and the Ghana National Canoe Fishermen Council (GNCFC). Such efforts underscore the partners’ commitment to fostering open communication and collaboration with local communities.

Eni has been active in Ghana since 2009, with offshore hydrocarbon exploration and production activities yielding an equity production of about 34,000 barrels of oil equivalent per day. As the operator of the OCTP project, Eni holds a 44.4% share, in partnership with Vitol (35.6%) and GNPC (20%). Beyond oil production, the joint venture’s portfolio includes initiatives in training, economic diversification, access to water and sanitation, and energy access, reflecting a holistic approach to development.

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