Preparatory works are underway for the construction of the first phase of a
gas processing plant for the Jubilee Oil Field production.
Speaking in an interview with the Times at the sidelines of the naming ceremony of the Floating Production Storage and Offloading (FPSO) vessel for the production of crude oil from the Jubilee Field, Nana Boakye Asafu-Adjaye, Chief Executive Officer (CEO) of the Ghana National Petroleum Corporation (GNPC), said the deep water portion of the pipeline to be used for the project has been ordered.
The gas plant to be sited at Bonyere in the Jomoro District in the Western Region, will process gas from the Jubilee Field for both the local and the international market.
The FPSO has been named after Dr. Kwame Nkrumah, Ghana’s first President, for playing a key role in Ghana’s development agenda.
Nana Asafu-Adjaye said his outfit and other stakeholders are in the final stages of negotiating a contract with Technip, one of the contractors working with the Jubilee partners, for the installation of the pipeline.
He said work on the demarcation of the site for the project is ongoing and contracts are being evaluated for work to commence.
“Work on the environmental aspect of the project is currently registered with the Environmental Protection Agency (EPA) and evaluation of contractors to execute this aspect of the project is on course,” he said.
The first phase of the project is estimated to cost about 300 million dollars, while the completion of the second phase involving the extension of the pipeline to Takoradi to power the Aboadze thermal plant
and upgrading the size of the plant, will bring the total cost of the entire project to 1.1 billion dollars.
Nana Asafu-Adjaye said BNPC is discussing with a number of companies to come on board as strategic partners to raise the funds for the projects, adding, “GNPC will have its share while the strategic partners will also have their share in the processing plant.”
He said the government is committed to developing a world-class infrastructure that will process natural gas as fuel for existing power plants at Effasu and Takoradi, both in the Western Region.
The development, he said, is also planned to ensure the sale of natural gas and derivatives to both domestic and international markets.
Ghana, he said, had adopted the policy of zero flaring of gas in the production of the Jubilee Field in order to reap the maximum benefits from the gas industry.
He said the oil and gas find in the Jubilee Fields is an opportunity to enhance the country’s growth and development, adding that all sectors of the economy are positioning themselves for an accelerated growth driven by the oil and gas industry.
“The gas sales will also provide an additional source of income for the partners in the Jubilee project, as well as tax revenue for the government,” he said.
Ghana is set to become one of Africa’s newest oil exporters in the last quarter of this year, when production begins at the offshore Jubilee Field, which was discovered in June 2007 with the potential resources of 1.8 billion barrels, according to Tullow Oil Plc, the biggest investors in the Venture.