FOURTH OIL FIELD EMERGING IN GHANA: MANY MORE TO EMERGE

The Chief Executive of the Petroleum Commission, Egbert Faibille, announced plans for the upstream petroleum sector to commence production at its fourth oil field, the Pecan Oil Field, with anticipated peak output of up to 80,000 barrels of oil per day. 

Tullow Ghana Jubilee Platform
(Source: Modern Ghana)

While Faibille did not specify a timeline, he indicated that appraisal activities are nearing completion, setting the stage for development and production. The addition of the Pecan field is seen as critical to offsetting the ongoing decline in crude oil production, which has persisted for the fourth consecutive year.

According to the 2023 annual report by the Public Interest and Accountability Committee (PIAC), domestic crude oil production saw a significant decrease, falling to 48.25 million barrels in 2023 from a peak of 71.44 million barrels in 2019. This marks an average annual decline rate of 9.2 percent over the past four years, and a 7 percent drop from the 2022 figure of 51.7 million barrels.

In 2023, production from Ghana's three major oil fields—Jubilee, Tweneboa-Enyenra-Ntomme (TEN), and Sankofa Gye Nyame (SGN)—contributed to the overall output, with Jubilee Field leading with 30,444,217 barrels, comprising 63 percent of the total production. TEN Field contributed 6,716,278 barrels (14 percent), and SGN Field added 11,086,541 barrels (23 percent).

Speaking at the opening of the Ghana Oil and Gas Conference 2024 in Accra, Mr. Faibille underscored the importance of the Pecan project in enhancing the sector's growth, emphasizing, 

"Another avenue for industry stimulation lies in the development of existing discoveries, some of which are currently undergoing appraisals to assess their commercial viability."

 He further revealed that the Petroleum Commission, the regulatory authority overseeing the upstream petroleum industry, is collaborating closely with ENI on the evaluation of discoveries like Akoma and Eban to expedite their development. Additionally, he mentioned that Springfield is preparing to assess the Afina discovery.

"The cumulative impact of these advancements will lead to increased production volumes and heightened levels of activity, thereby enhancing local content," Mr. Faibille emphasized.

He also highlighted ongoing initiatives to position Ghana as an attractive hub for oil and gas investments through the 'Ghana Oil and Gas Roadshows'. According to him, these efforts are yielding positive results with growing interest from exploration and production (E&P) supermajors and majors, who are actively participating in data-rooms and engaging in data-licensing.

Furthermore, Mr. Faibille disclosed that Ghana is poised to become an onshore petroleum producer as the Ghana National Petroleum Corporation (GNPC) finalizes data acquisition activities in the Voltaian Basin, with plans to drill its inaugural exploratory well.

"This marks a significant investment in data acquisition for the onshore Voltaian Basin, which holds the potential to revolutionize the local oil and gas sector," Mr. Faibille concluded.

The impending drilling of an exploratory well by GNPC signifies the dawn of a new era in Ghana's oil and gas exploration landscape. This year's annual oil and gas conference, organized by the Ghana Upstream Petroleum Chamber, centered around the theme 'Stimulating the Growth of Ghana's Oil and Gas Industry'. The event served as a platform to foster dialogue on the country's upstream petroleum activities.

In a keynote address delivered on behalf of the Minister of State at the Energy Ministry, Herbert Krapa, the government recognized the pivotal role of the oil and gas sector in driving national development. Emphasizing the importance of robust regulatory frameworks, Krapa highlighted the necessity to support growth and attract investments.

"We must ensure that our policies and laws promote industry expansion and enhance our competitiveness in attracting investments and skilled workforce," Mr. Krapa asserted. "This involves streamlining regulatory processes, providing clarity and certainty for investors, and ensuring our competitiveness."

Virginia Palmer, the U.S. Ambassador to Ghana, acknowledged Ghana's journey in the oil and gas industry, noting the impact of global energy transitions on output and oil export earnings, affecting the country's budget revenues and ability to fund its long-term energy goals. She also referenced a report highlighting Africa's annual financing gap of US$400 billion to achieve sustainable development goals.

David Ampofo, CEO of the Ghana Upstream Petroleum Chamber, urged for accelerated exploration efforts. He called upon regulators to expedite the issuance of new exploration licenses and promote infrastructure-led exploration to develop a robust pipeline of projects.

"The key factor that can truly make a difference is enhanced collaboration between government agencies and international oil companies to facilitate a conducive business environment and restore Ghana's attractiveness as a preferred destination for upstream petroleum investments," Mr. Ampofo emphasized. 

Source: GhanaWeb

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