Oil giants Shell and Chevron have signed a preliminary, non-binding agreement with the Ghanaian government to potentially acquire production rights over the South Deepwater Tano Cape Three Points (SDTCTP) oil and gas block.
The agreement was signed with the Ghana National Petroleum Corporation (GNPC) on Tuesday and announced by Ghana’s Energy Minister, John Abdulai Jinapor, on Thursday, September 3, 2026.
Ghana seeks to attract more oil investment
The agreement comes as Ghana works to attract new investment into its petroleum sector and reverse a decline in oil production.
Ghana’s crude oil production fell from a peak of about 71.44 million barrels in 2019 to 48.25 million barrels in 2024, increasing pressure on the government to encourage new exploration and production projects.
The government is currently reviewing the country’s legal and fiscal framework for upstream petroleum activities in an effort to make the sector more attractive to investors.
Agreement is not yet a final deal
Although the announcement represents an important step, Shell and Chevron have not yet secured a final production contract.
Shell said the memorandum of understanding provides a framework for further negotiations over the final licence terms and remains subject to the necessary regulatory approvals. Chevron also confirmed the agreement while saying it continues to assess exploration opportunities around the world.
Ghana proposes changes to petroleum rules
Energy Minister John Jinapor said the government is considering several reforms to encourage investment.
One proposal is to reduce the GNPC’s initial interest in upstream projects from 15% to 10%. The government is also considering a simpler tax system and different royalty rates depending on the depth of offshore projects.
The government hopes these changes will encourage international oil companies to invest more heavily in Ghana’s petroleum industry.
What the deal could mean for Ghana
If the agreement eventually develops into a final production arrangement, it could bring fresh foreign investment, new exploration activity, jobs and additional government revenue.
The potential involvement of two major international oil companies also signals renewed interest in Ghana’s offshore oil and gas industry at a time when the country is trying to reverse declining production.
For now, however, the agreement remains preliminary and non-binding, meaning further negotiations and approvals are required before Shell and Chevron can formally begin production under the proposed arrangement.
