Business News of Thu, 25 Jun 200964

Confirmed: Oil Will Flow In 4th Quarter Of 2010

The government has given the assurance that the planned production of oil in the fourth quarter of 2010 is on track.

The Minister of Energy, Dr Oteng Agyei, who made this known to Parliament, has therefore put to rest media speculation that Kosmos Energy, a member of the consortium of oil explorers had threatened to quit. “We are on track to achieve the first production in the fourth quarter.

The contractors are still committed to the production schedule,” Dr Agyei told the house yesterday.

The Energy Minister was responding to a question by Joe Baidoe-Ansah (NPP-Effia Kwesi-mintim).

The member wanted to know what prevented the completion of negotiations on the Plan of Development (POD) for the Jubilee Fields and whether the delay would not affect the planned production.

Dr Agyei said following the Jubilee discovery, Tullow and Partners submitted a POD to government for review in accordance with the petroleum agreement.

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“The POD was reviewed by a government team which raised a number of issues, most of which have been resolved and the iterative negotiation process is almost completed,” he said.

On media speculation of a threat of pull out by Kosmos Energy raised by Dr Anthony Osei Akoto (NPP-Old Tafo), the Minister said he had read and heard about it but added, “nobody has contacted my office to declare intention to get out”. He said the government and the contractors were committed to the planned schedule.

Dr Agyei also answered questions pertaining to electricity supply to communities in the Asunafo North and Offinso North constituencies of the Ashanti Region as well as Evalue Gwira constituency in the Western Region posed by their respective MPs.

The Minister said the communities had been earmarked to benefit from the national grid in subsequent phases of the National Electrification Programme. In other business, two papers were laid before the House and referred by the Speaker to the Committees of Works and Housing and Finance for consideration and report.

They are Off lake Agreement and Water, Concession and Support Agreement among Ghana Water Company Limited, (GWCL) Garth Water Ghana Limited and the government for the abstraction and production of potable water for delivery to GWCL.

Source: Times

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