Although commercial quantities of offshore oil reserves were discovered in the 1970s, by 1990 production was still negligible. In 1983 the government established the Ghana National Petroleum Corporation (GNPC) to promote exploration and production, and the company reached agreements with a number of foreign firms. The most important of these permitted US-based Amoco to prospect in ten offshore blocks between Ada and the western border with Togo. Petro Canada International has prospected in the Tano River Basin, and Diamond Shamrock in the Keta Basin. In 1989 three companies, two American and one Dutch, spent US$30 million drilling wells in the Tano basin. On June 21, 1992, an offshore Tano basin well produced about 6,900 barrels of oil daily.

In the early 1990s, GNPC reviewed all earlier oil and gas discoveries to determine whether a predominantly local operation might make exploitation more commercially viable. GNPC wanted to set up a floating system for production, storage, off-loading, processing, and gas-turbine electricity generation, hoping to produce 22 billion cubic feet per day, from which 135 megawatts of power could be generated and fed into the national and regional grid. GNPC also won a contract in 1992 with Angola's state oil company, Sonangol, that provides for drilling and, ultimately, production at two of Sonangol's offshore oilfields. GNPC will be paid with a share of the oil.

The country's refinery at Tema underwent the first phase of a major rehabilitation in 1989. The second phase began in April 1990 at an estimated cost of US$36 million. Once rehabilitation is completed, distribution of liquified petroleum gas will be improved, and the quantity supplied will rise from 28,000 to 34,000 barrels a day. Construction on the new Tema/Akosombo oil products pipeline, designed to improve the distribution system further, began in January 1992. The pipeline will carry refined products from Tema to Akosombo Port, where they will be transported across Lake Volta to northern regions. Distribution continues to be uneven, however. Other measures to improve the situation include a US$28 million project to set up a national network of storage depots in all regions.

The Tema Lube Oil Company commissioned its new oil blending plant, designed to produce 25,000 tons of oil per year, in 1992. The plant will satisfy all of Ghana's requirements for motor and gear lubricants and 60 percent of the country's need for industrial lubricants, or, in all, 90 percent of Ghana's demand for lubricant products. Shareholders include Mobil, Shell, and British Petroleum (together accounting for 48 percent of equity), Ghana National Petroleum Corporation, and the Social Security and National Insurance Trust.

Data as of November 1994