Crude dip won’t affect Ghana’s Oil Industry
The Minister of Petroleum, Emmanuel Kofi Armah Buah, has given an assurance that the drastic drop in the prices of crude oil on the world market will not have adverse effects on investor confidence in Ghana’s petroleum industry. He said although the huge drop in the prices of crude oil prices had led to drip in stock value that had negatively affected investment in the upstream sector there was no cause for alarm
” Companies have cut their projected budgets , investment plans have been reviewed downwards abbd there has been a lot of retrenchment globally , but Ghana’s oil and gas industry has not been affected that much he said ”.
Commenting on the impact the drop in crude oil prices might have on the economy in an interview with the Daily Graphic in Accra yesterday, the MMinister said ”Ghana has been lucky because even in the depressed circumsttances we are still continuing with major projects in the upstream Petroleum sector”.
As we speak the Floating Production storage and offloading vessel Mills has set sail from Singapore and will arrive in Ghana by mid-February 2016 and by middle of this year sub-sea installations will be completed and tied to the FPSO Mills for oil production to start. Latest by August 2016 , oil from TEN project should floe ”Mr Buah stated
He said Gas from the TEN project would also flow in 2017.
He said the ENI Sankofa project was in progress adding that ”because of the reduction in the price of doing business we think it will reflect in the reduction of gas”
”All the planned projects in Ghana have not suffered ,That is really the emphasis . All projects are going according to schedule ”he said
He said a plan of development (POD) for untapped oilfields near the Jubilee projects was being developed.
HESS declares more oil
Mr Buah disclosed that HESS Corporation an American oil company had discovered oil in commercial quantities in two of its wells. ”Hess, after exhaustive appraisal work , has declared two of the seven discovered filed commercial.
”The fields that have been declared commercial are Beech-1 and Almond-1 . The other five discoveries being appraised are Paradise -1, Hickory North, Pecan -1, Cob-1 and Pecan North -1. This is clear indication that Ghana’s oil industry is continuing to expand .
”It is also very likely that Hess will build a new FPSO for the two fields after the POD has been approved ”Mr Buah added. Hess has so far spent close to $1 billion on the project.
Hess Corporation discovered more oil and gas in the deep sea Off Cape Three Point in 2013. In an Official communication to it investors on the New York stock Exchange on February 28,2013, Hess said it had completed drilling of its seventy consecutive successful exploratory well on the Deepwater Tano /Cape Three points block offshore Ghana”.
Hess is the leading global independent energy company primarily engaged in the exploration and production of crude oil and natural gas and the marketing of refined petroleum product , natural gas and electricity .
Paradise-1 was found to contain both oil and gas while Hickory North-1 contains karge quantities of gas.
The company said the Pecan Noth-1 well which was located approximately seven miles northeast of another well dubbed Pecan-1 well’.
The drilling of the wells spanned a period of three years . Hess said it it had achieved ”outstanding drilling performance in terms of drilling time and cost per foot with gross costs averaging $40million per well for the last three wells including success case logging ”.
GHana joined the club of oil-producing countries when Kosmos Energy and its partners discovered oil in commercial quantities in June 2007.
Source: Daily Graphic