Akufo-Addo banks hopes new Oil to help restore Ghana’s rapid economic growth

GHANA chalked another significant milestone as an oil producing country after striking oil in commercial quantities in 2007 with the turning of the valves for first oil from the third oil production asset after jubilee and Tweneboa-Enyenra-Ntomme (TEN), the Sankofa-Gye Nyame Offshore field at the Cape Three point in the Western Region.

The Sankofa field forms the first phase of the $7.9 billion Offshore Cape Three Points project (OCTP), which is expected to also deliver up to 180 million cubic feet of natural gas per day by the end of next year, more than doubling domestic gas supply.

It will serve as Ghana’s first gas-to-power project and produce about 45,000 barrels of oil per day significant enough to shore Ghana’s earnings from its oil production.

The President, Nana Akufo-Addo, who ceremoniously turned the valves for the first oil to flow into the John Agyekum Kufour Floating, Production Storage and Offloading (FPSO) Unit, said the new field holds strategic oil and gas reserves to spur the country’s socio-economic fortunes and help efforts at achieving energy sufficiency.
Ghana as Petroleum hub

“It is evident that we are steadily working towards the realisation of the vision of making Ghana a Petroleum hub and establishing a petrochemical industry here.

Not only that, but also ensuring supply in Ghana to support economic activities and keep the country on the right path to desired growth,” he added.

Role of Ex-President Kufuor

FPSO John Agyekum Kufuor is named after Ghana’s former president who ruled between 2001 and 2008. It was during his rule that Ghana struck crude oil in commercial quantities.
Effects of low crude oil prices

Government’s hopes that OCTP will help to restore rapid economic growth in Ghana is challenged by low crude oil prices which, analysts believe, will hover around $50 throughout 2017.
No gas flaring policy and power

Under a no gas flaring policy adopted by the field operators, gas from the field will be transported through a subsea pipeline to an Onshore Receiving to generate some 1,000 mega watts of electricity.
President commends previous govt

The president commended the Mahama government, Parliament, the Ministry Of Energy and all other stakeholders for their various contributions made towards the exceptional and steady progress of the project.
President paid glowing tribute to Ex-President Kufour

He paid a glowing tribute to former President Kufour and his administration for blazing the trail in the country’s quest to join the league of oil producing countries.

“I believe the attainment of this feat has been made possible, due to consistent implementation of sector related policies and programmes aimed at creating the right business and investment climate, to ensure the rapid and continuous development of the sector. It has been ten years since Ghana made the historic discovery of oil and gas as a result of the bold and farsighted policies of the Kufour led NPP government”.
President commended partners

He also praised the partners for developing the field on schedule and within budget. “This is a project that has been completed three months ahead of schedule and, most importantly, under budget within the uncertainties that have characterized the global petroleum industry especially with deep-water projects”.

The President reiterated the important role oil and gas development continues to play in the country’s economic development and the need to sustain investment to develop the sector and manage the resources efficiently to propel the Ghanaian economy to prosperity.

“We shall prudently manage our petroleum resources with a long-term perspective, for the benefit of Ghanaian society as a whole. By judiciously managing our petroleum resources, we shall provide revenues to the country to ensure the welfare of our people promote employment, improve the environment, and strengthen trade and industrial development in Ghana”.

President Akufo-Addo said it is the expectation of government and Ghanaians that the Offshore Cape Three Point (OCTP) partners will ensure prudent management of the Sankofa oil and gas project to achieve cost efficiency.
This, according to President Akufo-Addo, is the only way low gas prices can be guaranteed, and, eventually, low electricity tariffs to stimulate development.

“With the addition of the production from the OCTP to those of the T.E.N and Jubilee fields, we are optimistic that our beloved nation will enhance significantly its gas supply for our domestic power generation,” the President stressed.

GNPC on Volta basin

Chief executive of the Ghana National Petroleum Corporation (GNPC), Dr K K Sarpong, hinted that more potential for gas production for cheap electricity generation is in the development of the Volta basin.
He noted that finding oil in the Volta basin holds a major key to kick starting Ghana’s petrochemical industry.

The Voltarian basin is a game changer to Ghana’s oil and gas production,” he hinted.
Stable power supply

Ghana is recovering from a power crisis caused by lack of funds to buy oil in the absence of domestic gas to power thermal plants. The government estimates gas from OCTP will boost generation by 1,000 megawatts, enough to ensure stable supply.
Shareholding structure

ENI holds a 44.44 percent stake in OCTP, representing the largest foreign direct investment in Ghana’s history.
Trading company Vitol holds 35.56 percent while state oil company Ghana National Petroleum Corporation has a combined carried and participating interest of 20 percent.

Source: Daniel Nonor || The Finder

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