Oil production will halt in 2023 if new fields are not discovered - Deputy Energy Minister

Ghana stands a risk of losing the oil industry after 2023 if the sector is not saved, Deputy Energy Minister Mohammed Amin Adam has disclosed.

Citing Ghana’s oil production profile, he intimated that the contributions of all the three productions fields will peak and reach plateau levels of 230,000 barrels a day, after which it will begin to decline.

“…our oil production profile shows that the contributions of all the three producing fields will peak and reach plateau levels of approximately 230,000 barrels in 2020 this year. And maintain production levels up to 2023 after which production levels will begin to decline if no new fields are brought online… when production is declining, your oil industry is going away”

As a precautionary measure to prevent the oil industry from crumbling, Dr. Amin Adam revealed that government resorted to signing the deal with Aker Energy to boost the country’s chances.

We as a government are very responsible. We are not going to sit down for Ghana’s oil industry will go down or go away, we’re not going to do that,” he explained

He further noted that the deal with Aker Energy will enable the oil industry add 100,000 barrels of oil to the 230,000 which would be produced in 2023 to sustain productivity and opportunities.

“…if we have to provide incentives to ensure that this project is realised, so that by 2023 we’re adding 100,000 barrels of crude oil to the 230,000 we’re producing…. That is what the Aker project is going to bring on board… that will take us to over 300,000 barrels of oil…” Dr Amin Adam projected.

The opposition NDC recently called out government to bring to full disclosure details of the deal with Aker Energy on the production of crude oil for the country.

The alleged that the agreement with the oil exploration company was a rip off as the interests to be gained by Aker was outrageous.

In response, however, the Deputy Energy Minister insisted that government struck good deal with Ghana’s free interest renegotiated from 10 percent to 15 percent.

He also stressed that the local participation was doubled, from 2.5 percent to 5 percent.