Ghanaian President Nana Akufo-Addo sacked Energy Minister Boakye Agyarko on Monday, a statement from the presidency said, giving no official reason.
Press reports said Agyarko was removed because Akufo-Addo was unhappy with his handling of an agreement to extend an existing five-year deal with United Arab Emirates-based AMERI Energy to operate a 300 MW emergency power plant.
The deal has been controversial in Ghana, with critics balking at a price tag of more than half a billion dollars.
Akufo-Addo asked Agyarko to hand over his office to the minister of Lands and Natural Resources, John Peter Amew, until a new appointment is made, the statement said.
The West African country became an energy producer in late 2010, and produces around 180 000 bbl/d mainly from three main fields, which also produce most of Ghana's gas for power generation.
But intermittent power cuts have been a headache for the government, as demand consistently surges ahead of supply.