Ghana loses $328 million annually for under exploiting Jubilee field – Majority

Deputy Energy Minister Dr Mohammed Amin Adam says the Sankofa gas project deal signed by the Mahama-led administration in 2015 makes Ghana lose US$ 328 million yearly.

The NDC at its policy dialogue series on Wednesday accused government of wasting resources insisting it has a far superior record when its tenure is compared to that of the Akufo-Addo government.

Reacting to these claims, the energy boss called the minority out on its Sankofa gas agreement.

According to Dr Amin Adam, the gas production deal procured under the former government obliged Ghana to take expensive gas from Sakofa instead of free gas from the Jubilee field.

The Jubilee field’s recoverable reserves are estimated to be more than 370 million barrels, with an upside potential of 1.8 billion barrels, however, per the deal priority had to be given to the costly Sankofa gas.

This, he says proves that the minority played games with the oil and gas finds in which the foreign oil companies benefited whiles the host country lost significant revenue.

“As a result of prioritizing Sankofa gas over Jubilee gas which President Kufour negotiated for free for Ghana; and TEN gas which is very cheap, we have not been able to maximize the use of our free Jubilee gas; as we are compelled to off-take more Sankofa gas. We take 70 mmscfd (million standard cubic feet per day) of gas from Jubilee which is free against 154 mmscfd from Sankofa”.

The deputy energy minister also cited “less gas off-take from Jubilee resulting in the decline of oil production from the Jubilee fields”.

The deputy energy minister also cited “less gas off-take from Jubilee resulting in the decline of oil production from the Jubilee fields”.

“For example, it is estimated that we lose about 15,000 bbls of crude oil per day because of the higher Gas-to-Oil Ratio. Multiply 15,000 bbls by 365 days. 5,475,000 bbls a year assuming no-lose production days; multiply by $60 per barrel, it gives you US$328.5 million lost to the Jubilee partners and Ghana”, he explained.

Dr Amin Adam further touted his government’s success in the oil and gas sector.

“We have renegotiated the domestic gas price from $8.8 per mmBtu to $6.08 per mmBtu. The gas price would have been lower if the Sankofa gas price was less expensive”