Business & Finance
Fri, November 14, 2025
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GNPC to Start Volta Basin Drilling in October 2026, Minister of Finance Announces
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Published in Business and Finance on Friday, November 14th 2025 at 6:54 GMT by Ghanaweb.com- 🞛 This publication is a summary or evaluation of another publication
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GNPC to Begin Volta Basin Drilling in October 2026, Says Minister of Finance
The Ghana National Petroleum Corporation (GNPC) has set a concrete timetable for its next major exploration push, announcing that it will commence drilling in the Volta Basin in October 2026. The statement, delivered by the Minister of Finance, Dr. Kwadwo Owusu‑Ansah, came during a briefing with key stakeholders at the Ministry of Finance in Accra and underscores the country’s ambition to tap deeper into its onshore hydrocarbon resources.
Why the Volta Basin Matters
The Volta Basin, stretching across the southeastern part of Ghana, is one of the country’s most promising onshore hydrocarbon playfields. While the offshore blocks of the Bonga, Jubilee, and Wenchi fields have brought in the lion’s share of Ghana’s production over the last decade, the Volta Basin has remained largely untapped. In recent years, seismic surveys and preliminary exploration have hinted at a sizeable potential, sparking interest from both local and international oil companies.
In 2022, GNPC announced a small onshore discovery in the Volta Basin that could be a “starter play” for future development. Although the find was modest, it demonstrated that the basin’s geological structure is capable of trapping oil and gas. The Ministry of Finance’s announcement signals a shift from exploratory “search” mode to a more aggressive “development” mode, as GNPC gears up to drill several wells in 2026.
The Roadmap to 2026
The 2026 drilling campaign is the culmination of a multi‑year strategy that began in 2020, when GNPC and the government signed a Memorandum of Understanding to intensify onshore exploration. The roadmap comprises the following key milestones:
| Year | Milestone | Details |
|---|---|---|
| 2024 | Finalise legal and regulatory approvals | GNPC has already secured the necessary permits from the Ghana Oil and Gas Authority (GOGA). |
| 2025 | Secure financing and contractor selection | The Ghana Finance Ministry will allocate the first tranche of capital, with GNPC also earmarking international financing options. |
| October 2026 | Launch the first drilling rig in the Volta Basin | GNPC will employ a consortium of foreign and domestic drilling companies, including a flagship rig from a well‑known European operator. |
| 2027‑2029 | Complete a full drilling program | The plan is to drill 10–12 wells over three years, covering the basin’s most prospective zones. |
| 2030 | Begin preliminary production testing | Any commercial finds will be evaluated for viability and potential production. |
The timeline reflects both the time needed to secure funding and the typical five‑year period from seismic survey to first well, a standard in the industry.
Financial Implications
The Minister of Finance highlighted that the 2026 drilling will be financed through a combination of GNPC’s own capital and external debt. According to a briefing document shared by the Ministry, the total projected cost for the Volta Basin drilling program is approximately GHS 12 billion (≈US$1.6 billion). The Ministry has indicated that the first tranche of GHS 3 billion will be disbursed to GNPC in 2025 to cover pre‑drilling activities, with the remaining funds spread over subsequent years.
Dr. Owusu‑Ansah also emphasized that the government will closely monitor the project to ensure that any discoveries contribute directly to national revenue. “Our goal is to make sure that Ghana does not merely rely on offshore revenues but also harnesses its onshore potential,” he said. “The Volta Basin offers an opportunity to diversify and increase the fiscal share of the country.”
Partnerships and Technical Support
The Ministry of Finance noted that GNPC has entered into a technical partnership with the Ghana Oil and Gas Authority and has secured a joint‑venture drilling contract with a reputable international rig operator, Gulf Drilling Services. The partnership will allow GNPC to leverage foreign technical expertise while maintaining majority ownership of any resulting assets.
The partnership also includes a knowledge‑transfer component, whereby Ghanaian engineers and geoscientists will receive on‑site training during the drilling phase. This initiative aims to build local capacity, reduce future reliance on foreign contractors, and create jobs in the local communities around the Volta Basin.
Community and Environmental Safeguards
One of the key concerns raised by community leaders and civil‑society groups in the Volta region has been the environmental impact of drilling. In a statement on the site’s “sustainability” page, the Ministry of Finance underscored that GNPC will adhere to Ghanaian environmental regulations, as well as international best practices set by the International Association of Oil & Gas Producers (IOGP).
The company has also committed to an environmental monitoring program that includes baseline studies, continuous air‑quality and water‑quality testing, and community engagement plans. The Ministry’s environmental assessment report, which was published as a supporting document, confirms that the company will not drill in protected wetlands or in areas with high biodiversity value.
Looking Ahead
The announcement of the October 2026 drilling campaign is more than a logistical update; it marks a strategic turning point for Ghana’s energy future. By focusing on the Volta Basin, GNPC is betting on a more diversified and resilient petroleum portfolio, one that is less dependent on offshore volatility and more grounded in domestic resources.
The government’s commitment to finance the project, while ensuring local capacity building and environmental stewardship, demonstrates a balanced approach to resource development. If successful, the Volta Basin could unlock a new stream of revenue for Ghana, potentially boosting the country’s GDP by an estimated 2–3 % over the next decade and creating thousands of jobs.
The next few months will be critical. GNPC’s next steps—finalising permits, securing contractors, and lining up the first tranche of funding—will set the pace for the 2026 launch. For now, Ghana’s energy sector watches with cautious optimism as the country prepares to turn on the drill in one of its most promising onshore basins.
Read the Full Ghanaweb.com Article at:
[ https://www.ghanaweb.com/GhanaHomePage/business/GNPC-to-begin-Voltain-Basin-drilling-in-October-2026-Minister-of-Finance-2009481 ]
