Aside from the initial 10% participating interest, the GNPC exercised an option it had to acquire an additional 5% pay interest in the block, the other partners of which include Tullow Oil (47.18%), Kosmos Energy (17%), Anadarko (17%), and Petro SA (3.82%).
The initial ramp-up of production is expected to peak at approximately 76,000 bopd, while around 50million standard cubic feet per day of gas is expected from the block.
Aside from playing unique roles in the exploration, appraisal and development of the block, the GNPC managed to beat down to US$0.5/mmbtu for all associated gas and US$3.00/ mmbtu for non-associated gas, from an initial proposed gas price of US$9.50/mmbtu.
Aside from the 15% participating interest, experts contend the country should pay attention to the ancillary services that support the industry and boost the country’s earnings.
Alex Mould, CEO of the GNPC, contends the company has done a good job to win for Ghanaians part of the US$5.152billion that is the estimated total capital expenditure for the TEN development project.
The national oil company, he told the B&FT, championed the local content agenda and ensured that the project’s FPSO module support stools and mooring piles, and the first subsea Christmas tree were fabricated in Ghana.
Indigenous Ghanaian companies — Seaweld Engineering Ltd and Orsam Ghana Ltd. — fabricated parts for the TEN FPSO.
In terms of capacity building, GNPC ensured that the TEN Plan of Development included commitments by the operator, Tullow, and other partners to create opportunities for Ghanaians to gain experience and develop skills as integral members of the TEN project team.
As such, since 2013 a total 52 Ghanaians from GNPC, the Petroleum Commission of Ghana and Tullow Ghana Ltd. have spent time on secondment with the TEN Project team in London, Singapore, Houston and Ghana.
They have worked in a variety of roles including Subsea Engineer, FPSO Commissioning Engineer, Geologist and Project Finance Manager.
In addition, the corporation said 30 Ghanaian nationals worked on the FPSO conversion with MODEC in Singapore, with 15 of them completing the Level 3 General Vocational Qualification — Diploma in Process Operations — while 10 of them were members of the crew for the vessel’s voyage to Ghana.
They have developed skills and experience relevant to a major offshore development project, making them well-placed to contribute to future oil developments in Ghana, the corporation indicated.
According to Alex Mould, the Ghanaian private sector does not have the huge capital outlays required for the upstream sector, and so the national oil company will invest in that sector until Ghanaians are ready.
When that happens, the corporation will then decide which aspects of the business it should keep and which aspects it should hand over to the private sector, he said.
“GNPC should not be in the low margin area, but Ghanaians cannot be in the high margin area because they do not have the resources or the technical know-how. But for the smaller ones they can be there, which is why we formed the Enterprise Development Centre to help SMEs grow,” he said.
“The idea is to go into some of the areas, and then when Ghanaians are ready we (GNPC) come out and the private sector goes into it. We then use that money to go into another area to ensure we block the space for Ghanaians.”
GNPC’s role in TEN
As anchor partner, GNPC led the negotiation process for the Petroleum Agreement with the Contractor group.
The corporation, the B&FT understands, conducted in-house studies and work activities involving data acquisition and generating leads which helped the partners and contributed greatly toward the discovery of TEN.
The GNPC also led the process of negotiating and agreeing the price of gas for both the TEN associated and non-associated gas discoveries
According to the GNPC, the project is an important contribution to improving Ghana’s hydrocarbon reserve base and corresponds to the company’s objective of replacing and growing reserves.
The Block, operated by Tullow Ghana Limited, is the development of a cluster of discoveries: Tweneboa (Tweneboa Non-Associated Gas) – Enyenra – Ntomme to allow economic efficiency, hence the field is christened the ‘TEN Development Field’.