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Ghana Lifts First Cargo

  • SOURCE: | qwesa2big
  • Within three months of President John Evans Atta Mills commissioning the Jubilee
    Field, offshore Ghana, the country is lifting its own first cargo of crude oil
    from the field where first oil flowed on December 15th of last year.
    The Ghana National Petroleum Corporation (GNPC) is lifting about 950,000 barrels
    todayWednesday March 9, 2011, under an agreed schedule, which had the Jubilee
    Field Operator,Tullow Oil, lift the first cargo of crude oil from the field on
    January 4 this year.

    Ghana is lifting its share of cargo from the field, at a time world crude oil
    prices are hovering on the upside of $100 which is a marked improvement over the
    prevailing prices at the time the other partners lifted their cargoes, which was
    then over $90.

    Ghana’s share in the oil comprises royalty payments and GNPC’s 13.75% holdings
    in the field.

    Taxes on the lifted cargoes would, however, be assessed on quarterly basis, when
    the partners report to GNPC and file their returns with the Ghana Revenue
    Authority (GRA), as required under the petroleum agreement.

    Tullow Oil, which holds 34.7046% stake in the Jubilee Field, lifted alongside
    the EO Group, which has a 1.75% stake.

    Kosmos Energy, Technical Operator of the field, holding 23.4913% stake was the
    next in line, and lifted 989,360 barrels of oil, taking advantage of a provision
    that allowed for partners to lift at a five per cent plus-or-minus their quota,
    looking at prevailing world crude oil prices.

    Anadarko West Cape Three Points (WCTP), which is an affiliate of U.S. oil giant
    Anadarko Petroleum Company, which also has 23.49% stake in the Jubilee Field,
    lifted the next parcel of 996,700 barrels, together with Sabre Oil and Gas
    Limited, which has 2.8127% stake.

    The national oil company’s lifting completes the first round of lifting by the
    partners, ushering them into the second round of lifting with Tullow Oil
    scheduled to lift the next cargo on March 18, 2011.

    The partners would be lifting in turns. However, since it makes better economic
    sense to supply crude oil in large parcels, it may be possible for a partner to
    lift a parcel of more quantities than its quota.

    However, the parties would reconcile to ensure that there is equitable
    distribution of proceeds from the sale of the oil, in terms of stake-holdings
    and taxes due the state.
    The first parcel of Jubilee cargo, which was lifted by Tullow Oil, was shipped
    to Europe onboard the tanker, MV Spike.
    The Jubilee Field, which straddles Kosmos-operated West Cape Three Points (WCTP)
    and Tullow-operated Deepwater Tano blocks, is estimated to have a reserve in the
    range of 800million to 1.5 billion barrels of crude oil, under the first phase.
    The field started producing at 55,000 barrels of oil per day (bop/d), which is
    expected to peak soon to 120,000 bop/d.

    The FPSO Kwame Nkrumah, which is producing the field, has a production and
    processing capacity of 120,000 bop/d and 160 million cubic feet of gas per day,
    with a storage capacity of 1.6million barrels of oil.

    Oil contribution to the national kitty for 2011 is estimated to be around
    $580-million, representing 6% of total projected revenue for the
    year. Government has emphasized that real development from Ghana’s oil find,
    would be from the opportunities along the energy sector value chain.
    Already, the GNPC has completed the construction of a 14-kilometre deepwater
    section of a gas pipeline that will transport gas from the Jubilee field onshore
    to a gas-processing facility that will process the associated gas produced by
    the FPSO.

    The development of a gas distribution infrastructure, development of
    gas-to-power projects, therefore make the FPSO an integral part of the gas
    supply chain.

    Bonyere, the coastal town closest to the Jubilee Field at 50 kilometres, has
    already undergone technical appraisals and negotiations are ongoing to site the
    gas processing and power plants to transform the western region into the bedrock
    for industrialization in the country.
    http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=204734

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