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President Akufo-Addo opens valve for Jubilee South First Oil

Akuo Addo Fpso Valve Akufo-Addo opening the valve

Sat, 9 Sep 2023 Source:

President Nana Akufo-Addo graced the FPSO Kwame Nkrumah on Friday, 8 September 2023, to activate the valve to mark the official commencement of oil extraction from the Jubilee South Area.

Projections for the Jubilee South-East Area are promising, with an anticipated addition of 30,000 barrels of oil per day to the greater Jubilee Field.

This endeavour aims to elevate the total oil production from the Jubilee Field to 100,000 barrels per day by year-end.

The Jubilee South-East Area project stands as a testament to the collaborative efforts of its partners, who have invested a substantial $1 billion into this joint venture.

President Akufo-Addo emphasised that this milestone is a clear indication of the government's steadfast commitment to the growth of Ghana's petroleum industry.

This joint venture comprises six oil companies, including Tullow Oil, Kosmos Energy, Kosmos Energy Ghana Investments, Ghana National Petroleum Corporation, PetroSA, and Jubilee Oil Holdings Limited.

Energy Minister Mathew Opoku Prempeh, who accompanied the president during the valve activation, underscored the project's dedication to local content.

He noted: "The project has been a resounding success, achieved in record time due to exceptional cooperation between the operator and the Ministry of Energy. In 2021, we initiated this project, and within a mere two years, we have increased our daily production by an additional 30,000 barrels, demonstrating remarkable progress."

Wissam Al-Monthiry, Chief Executive of Tullow, expressed enthusiasm for this substantial boost in production, which he sees as a significant advancement for the greater Jubilee Field.

Egbert Faibille, Chief Executive of the Petroleum Commission, extended congratulations to the Jubilee partners for their commendable work on the Jubilee South East Project.

He also highlighted the involvement of local companies, such as Orsam Oil and Gas, in fabricating key subsea installations, underscoring their dedication to promoting local content.

As the Jubilee partners embark on further investments for field expansion and development, it is anticipated that the local community will reap the benefits through increased job opportunities and contracts.

A few months ago, Tullow Oil Plc said that production had started from the Jubilee South East (JSE) Project, offshore Ghana.

The first JSE production well has been brought onstream and a further two producers and one water injector are expected onstream this year to help sustain gross Jubilee production over 100,000 bopd.

"Tullow and its partners plan to maintain this increased level of production at Jubilee over the next few years through an ongoing infill drilling program. The partnership has identified multiple future drilling locations and is focused on high-grading these opportunities to further extend the plateau and realise the full potential of the significant Jubilee resource base," Tullow said.

According to Tullow, the consortium has invested around $1 billion over the last three years on the JSE Project to drill wells and install the infrastructure needed to bring previously undeveloped reserves to production.

The project has advanced the use of local suppliers and the majority of the complex offshore infrastructure has been fabricated by local companies in Ghana, with more than 90% local workforce, Tullow said.

"This demonstrates the evolution of the Ghanaian supplier base that can now support substantial elements of its oil and gas industry and is testament to Tullow and its partners' commitment to developing local capacity," Tullow said.

Rahul Dhir, Chief Executive Officer, Tullow, commented at the time: "Successful start-up at Jubilee South East is a significant milestone for Tullow and for Ghana and I would like to thank all those who have played a role in bringing this near-field Ghanaian development into production. Through our strong project management and operating capability, we have delivered a complex offshore development which is one of the key catalysts to unlock value for our business. We are well-positioned for future growth with production ramping up in the second half of 2023 that will generate significant free cashflow. This marks the start of material deleveraging as we continue our transition into a low-debt business with the financial flexibility to pursue value accretive opportunities."

Dr Matthew Opoku Prempeh, Minister of Energy, Ghana, commented at the time: "At the Ministry of Energy, we are delighted by this important milestone and wish to congratulate Tullow and the Jubilee partners who have contributed in diverse ways to this journey.

"The approval of the Greater Jubilee Full Field Development Plan by the Ministry in October 2017 paved the way for investment in the development of the JSE project, which has now culminated in the delivery of the First Oil from the JSE area. The government of President Nana Addo Dankwa Akufo-Addo will continue to work with all our strategic partners with a view to leveraging our God-given resources for the ultimate benefit of our people."

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