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Don't collateralise TEN field for $431m loan - Minority warns government

TEN Oil Field TEN oil field| File photo

Thu, 21 Sep 2023 Source:

The Minority in Parliament has demanded a suspension of the government's intention to utilise proceeds from the TEN oil field as collateral for a $431 million loan from LITASCO.

The Minority contends that this arrangement is legally questionable and raises concerns that the TEN oil field might be obligated to produce a minimum of 3.8 million barrels of crude oil annually for LITASCO under the terms of the loan agreement.

In a press conference held on Wednesday, 20 September 2021, Mr John Jinapor, the Ranking Member of the Mines and Energy Committee, emphasised that despite Parliament's rejection of the Ghana National Petroleum Corporation's (GNPC) request to secure the loan until the agreement's terms and conditions were disclosed, the presidency has directed GNPC to seek board approval for the loan without obtaining parliamentary consent.

Mr Jinapor stated, "To our utmost surprise, the minority side has learned that the presidency is exerting coercive pressure to compel GNPC to proceed and finalise this loan agreement without parliamentary approval. This is unconstitutional, unlawful, and a blatant disregard for Parliament's directive and resolution."

The Minority also expressed appreciation to the GNPC board members who have opposed the loan agreement.

Mr Jinapor argued that the GNPC board's courageous stance should be applauded.

He cautioned that proceeding with the loan agreement without parliamentary approval would constitute a breach of constitutional principles.

TEN Field

In March 2009, the Eirik Raude rig successfully drilled the Tweneboa-1 wildcat well in the Deepwater Tano licence, around 20 km west of Tullow’s Jubilee field and some 45 km offshore from the Ghana mainland.

This initial discovery was followed up by a series of further successful appraisal and exploration wells which resulted in the discovery of the Tweneboa-Enyenra-Ntomme (TEN) field.

Developing the TEN fields

In May 2013, the Ghanaian government approved the Plan of Development for the field and Tullow commenced with its second major operated deep water development project in Ghana.

Similar to Jubilee, the development included the use of an FPSO which has a facility production capacity of 80,000 bopd which will be tied into subsea infrastructure across the field.

The vessel was converted in Singapore and in September 2015, the vessel was officially named ‘FPSO Prof. John Evans Atta Mills’, after the late Ghanaian president who oversaw First Oil from Ghana’s Jubilee Field in 2010.

The FPSO sailed away from Singapore to Ghana on 23 January 2016.

It arrived in early March 2016 where it was moored to the seabed before being connected to the risers and subsea infrastructure.

First oil was achieved on time and on budget in August 2016, three years after the Plan of Development was approved by the Government of Ghana.

2022 and 2023 Production

Net production from the TEN field was 12,500 bopd in 2022 and is expected to average around net: 11,000 bopd in 2023.

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