Ghana proposes cutting GNPC carried interest to 10%
By the AFREEQUE newsroom, based on MyJoyOnline
The Ghanaian government proposes reducing GNPC’s initial stake in petroleum agreements from 15% to 10%, as part of a package of reforms to attract investors. According to Energy Minister John Abdulai Jinapor, the bill also provides for new royalties and extending contracts from 25 to 30 years.
The Ghanaian government proposes reducing the initial stake of the Ghana National Petroleum Corporation (GNPC), the state oil company, in petroleum agreements from 15% to 10%. Energy and Green Transition Minister John Abdulai Jinapor announced this at the 2026 Local Content Conference and Exhibition.
The proposal is part of a set of reforms to the petroleum fiscal and regulatory framework. Royalties would be set on a three-tier scale based on water depth, and signature bonuses would be replaced by commerciality bonuses. The Additional Oil Entitlement would be replaced by an additional petroleum tax based on the R-factor. The carry-forward period for tax losses would rise from five to ten years, and the duration of petroleum agreements from 25 to 30 years.
According to Mr Jinapor, the aim is to attract new investment and make the oil sector a lever for economic transformation. He said that "local content is about economic transformation", arguing for policies that draw greater economic benefits from the country’s natural resources.
