Hopeful future for oil industry – Minister

With hitch-free development of more oil fields and the announcement of more discoveries, the future of oil in the country can only be good, the Energy and Petroleum Minister, Emmanuel Armah Kofi Buah has said, imploring Ghanaians to rally behind efforts at increased oil production.

“Our key focus is to produce more oil and more gas for the country. And we know what that means. That would mean a lot of revenue for this country,” the minister said when he took his turn at the Meet the Press Series.

Oil production, he said, could hit 250,000 barrels per day in the next three years when the second and third fields after Jubilee come on stream – the TEN project (80,000barrels per day) and Sankofa Gye-Nyame (45000 barrels of oil per day).

Production at the Jubilee Field has averaged 100,000 barrels per day -- 20,000 short of its peak production due to well impairment and delay in completing the gas processing plant to evacuate gas from the field.

Hess Corporation has also completed exploratory activities and received approval from the Petroleum Commission in respect to appraisal plans for the Almond, Pecan, Pecan North and Cob discoveries, the minister said -- adding that appraisal for the discoveries has commenced.

Other projects that make the minister hopeful of a brighter future for the petroleum sector include the recently announced Tano Basin discovery by Lukoil and the successful appraisal of Tullow Oil’s Wawa and Kosmos’ Mahogany, Teak and Akasa discoveries, which clears the way for development of those fields.

Aside from the oil, the minister said associated gas discoveries will go a long way to provide a ready source of fuel for the country’s increasing electricity demand.

While exploration and production activities in existing blocks have intensified, government has entered into eight new petroleum agreements, which have all been ratified by parliament.

“In addition to the state’s initial and participating interest, GNPC -- in line with its strategy to acquire capacity to conduct petroleum operation on its own -- has taken commercial interest in a number of blocks and intends to operate those blocks with the contractor through the establishment of joint venture companies,” the minister said.

The GNPC, the minister further noted, has been mandated to spearhead reconnaissance activities in the Voltaian Basin, an area onshore that is rumoured to hold even more hydrocarbon potential for the nation.

The investigation is expected to enhance the basin’s prospects and establish petroleum system and thermal maturity in the basin.

“GNPC has selected well-locations and procured project management consulting and drilling contractors for this exercise,” the minister said. “Mobilisation has been undertaken for the drilling of slim holes to commence in mid-October 2014.”