BP Plc, Europe’s second-biggest oil company, scrapped plans to bid for Kosmos Energy LLC’s stake in Ghana’s Jubilee field, two people familiar with the matter said.
Talks between BP and Ghana National Petroleum Corp. over a joint offer for Kosmos’s Ghanaian assets broke down in recent weeks, according to the people who declined to be identified because the negotiations were confidential. BP wants to focus on other projects, such as the Gulf of Mexico, one said.
BP’s withdrawal may pave the way for Exxon Mobil Corp.’s planned purchase of Kosmos’s Jubilee stake for at least $4 billion. With potential resources of 1.8 billion barrels, Jubilee has attracted attention from Chinese producers as well as BP as Ghana prepares to become one of Africa’s newest oil exporters this year.
Robert Wine, a spokesman for London-based BP, declined to comment. Exxon Mobil spokesman Patrick McGinn also declined comment, saying only that the company “routinely evaluates potential development opportunities around the world.” Dallas-based Kosmos, backed by Blackstone Group LP and Warburg Pincus LLC, said Oct. 12 that it agreed to sell its Ghana assets, including a 23.49 percent stake in Jubilee, to Exxon Mobil, the largest U.S. oil company. The deal is exclusive, Kosmos Chief Financial Officer Greg Dunlevy said at the time.
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Ghana National Petroleum, the state-owned energy company known as GNPC, has threatened to block the sale, asserting its “absolute” approval rights and saying it may buy the stake itself and then bring in partners. “The government of Ghana has clearly stated that it is interested in, and is prepared to buy, the share of Kosmos in the Jubilee field,” Energy Ministry spokesman Michael Sarpong said by telephone today from Accra. London-based BP had hired Goldman Sachs Group Inc. to advise it on Jubilee, two people familiar with the matter said in October.
Ghana’s Energy Ministry said in October that the government had held talks with Chinese oil executives over Jubilee. There has been contact with Cnooc Ltd., the listed arm of state- controlled China National Offshore Oil Corp., Sarpong said at that time. A month later, CNOOC said Ghana had blocked the company from making a bid.
Tullow Oil Plc, the U.K. explorer that operates Jubilee, said in July that Ghana will become one of the world’s top 50 oil producers after the government approved a plan to start output from the offshore field in the second half of 2010. The West African nation expects to pump 500,000 barrels of oil a day by 2014.
Tullow holds a 34.7 percent stake in Jubilee while Anadarko Petroleum Corp. owns 23.49 percent. Sabre Oil & Gas holds 2.81 percent, EO Group has 1.75 percent, leaving GNPC with 13.75 percent. The field was discovered in June 2007.
Friday, September 10, 2010
Oil To Flow This Year
Tullow Oil is on course to pump the first oil from Ghana's giant Jubilee field in the last quarter of 2010, a company official said on Wednesday.
"We are 298 days away from pumping the first oil and so far everything is on target," Anthony Djokoto, senior legal adviser at Tullow in Ghana told Reuters.
The field is estimated to hold as much as 1.8 billion barrels of oil, and output could ramp up to 150,000 barrels per day within months of startup.
Ghana, a major gold and cocoa producer, expects income from oil exports to significantly boost its economy.
Djokoto said Tullow obtained the first part of certification from the Environmental Protection Agency on December 31.
"Operationally and legally, we are on course," he said.
"We don't see any obstacle or any legal hurdle that could derail this target," Djokoto said when asked about the possible impact of the standoff between fellow stakeholder Kosmos Energy and state regulator Ghana National Petroleum Corporation (GNPC) on the intended production date.
GNPC is in protracted talks to acquire Kosmos' stake in the Jubilee field, following reports late last year that ExxonMobil had struck a deal to buy the share from Kosmos for $4 billion.
"We don't see that affecting our operations in any way," Djokoto said, adding major shipments of supplies for construction at the production site had been completed.
In December, China Development Bank said it had agreed to lend GNPC money to pay for infrastructure projects in the Jubilee field, without giving details of how much the bank would be prepared to lend.
"We are 298 days away from pumping the first oil and so far everything is on target," Anthony Djokoto, senior legal adviser at Tullow in Ghana told Reuters.
The field is estimated to hold as much as 1.8 billion barrels of oil, and output could ramp up to 150,000 barrels per day within months of startup.
Ghana, a major gold and cocoa producer, expects income from oil exports to significantly boost its economy.
Djokoto said Tullow obtained the first part of certification from the Environmental Protection Agency on December 31.
"Operationally and legally, we are on course," he said.
"We don't see any obstacle or any legal hurdle that could derail this target," Djokoto said when asked about the possible impact of the standoff between fellow stakeholder Kosmos Energy and state regulator Ghana National Petroleum Corporation (GNPC) on the intended production date.
GNPC is in protracted talks to acquire Kosmos' stake in the Jubilee field, following reports late last year that ExxonMobil had struck a deal to buy the share from Kosmos for $4 billion.
"We don't see that affecting our operations in any way," Djokoto said, adding major shipments of supplies for construction at the production site had been completed.
In December, China Development Bank said it had agreed to lend GNPC money to pay for infrastructure projects in the Jubilee field, without giving details of how much the bank would be prepared to lend.
Vanco Oil Find – Another EO Handiwork
Ghanaians are slated to be swimming in oil soon. Following the discovery of the Jubilee field by Kosmos Energy which substantially reduced the risk formerly associated to the Tano Basin as “exploration graveyard”, many global exploration companies are now seriously reassessing their understanding of the geology of offshore Ghana. The recent announcement by Vanco Oil about the discovery of oil in the Tano Basin is yet another strong evidence that as a consequence of Kosmos’ discovery in 2007, all the other companies in the basin are encouraged to explore for prospect. That means in a few months, when oil-producing countries are mentioned, Ghana’s name would be right there with the Angolas, the Nigerias, the Equitorial Guineas and so on. As refreshing as that sounds, contextualizing these new discoveries behind all these African countries against Ghana’s leadership reputation on the continent suggests a growth regression that cannot elate anyone. More so if you consider the fact that the one private sector entity most responsible for our current oil fortunes is also the most vilified company in our nation’s history. Did you know that Vanco was led to Ghana by the duo who eventually became the EO Group?
The story has been told many folds, but it must be told again. At the turn of the century, GNPC under the Rawlings administration had tried to get reputable oil companies to come to Ghana but to no avail. A combination of factors played a role in this frustration. First, the government’s policies surrounding oil exploration was not business-friendly especially considering that Ghana had no history of oil discoveries. Second, the low oil prices at that time made it an unwise investment considering the staggering required capital and the low probability of an oil find in what had become a “graveyard.” Third, the requisite technology had not advanced enough to explore for oil in the deep seas, and if one could find the technology, the cost involved was prohibitive. Last but not the least, GNPC under the management of Tsatsu Tsikata lacked the vision and tenacity to attract exploration companies of repute to explore our offshore prospects; instead, he was misguided by adventuring into businesss prepositions he had no clue in. The last time I investigated, that man was supposed to be a great lawyer but not an oil man, yet you would be hard pressed to point at any significant accomplishment of his in his own great profession of law. Could it just be that his apparent disdain for E.O. Group is simply a matter of jealousy for having failed to do what these two distinguished Ghanaians have accomplished?
When the NPP assumed office in 2001, it made oil discovery a national priority. Ghanaians in the Disapora were actively encouraged to source for oil companies, a focus that made Houston a frequent destination for energy sector officials. It was during such trips that George met with Mr. Van Dyke, CEO of Vanco Energy. Although Owusu would eventually lead Vanco to Ghana to solicit for an oil block, the two parties could not become parties to a Petroleum agreement because Owusu and Edusei had not yet formed a company. As a result, Vanco ended up securing a large, in fact, the largest block of all the companies that were in Ghana at the time, without EO involvement. For a duo that has been dubbed “Kufuor’s Boys,” how could it happen that they led a foreign company to Ghana, and yet that company secured an oil block without their involvement?
Vanco secured its Petroleum Agreement (PA) for the large block in August of 2002. George Owusu and Dr. Kwame Bawuah-Edusei quickly reorganized and formed the EO group to start searching for other oil companies right away. Three years later, GNPC was growing impatient with Vanco for “sitting” on its block. Word on the street was that Vanco merely came to secure the block and went around looking to sell it to a more serious explorer. Who could blame them? Why not have someone else invest the money to find oil in a known “graveyard?”
Meanwhile in 2003, EO had succeeded in convincing yet another Texas-based company to take a chance on Ghana. That is how Kosmos came to Ghana and secured a PA in July of 2004. Three years later in 2007, as Kosmos and the Ghana government proudly announced to the world that Ghana has discovered oil in commercial quantities, Vanco had yet to lift a finger. In fact, GNPC took back a portion of Vanco’s block due to inaction on the oil company’s part. But alas, three years later, Vanco now discovers oil.
Let’s do a double-take on the timeline: Owusu and Edusei lead Vanco to Ghana in early 2002. Vanco secures a block in August of 2002 without Owusu and Edusei’s involvement even though they led them to Ghana. This duo reorganizes and forms The EO Group and brings Kosmos Energy to Ghana in late 2003. Kosmos, EO, and Ghana sign a PA in July of 2004. Kosmos discovers oil in mid 2007. Vanco then gets serious and discovers oil three years later. Is it a stretch to suggest that Kosmos’ oil find may have lit the fire under Vanco’s feet to get serious about exploring its block? And if that is a fair suggestion, is it not also fair to credit EO for Vanco’s oil find considering all of the above?
If you do not agree with the immediately preceding premise, then may be the following would not make sense to you either. There is an old adage to the effect that if you could not thank your in-law for giving you a bride, you do not compound that lack of gratitude by stealing from him. But that is precisely what we as a nation are doing to the duo called the EO Group. While many of us were content with Ghana struggling along with Gold, Cocoa, and minute levels several other minerals, this group, based on available data at the time at GNPC, decided to gamble literally everything they had accomplished in their combined six decades of life in the United States on the slimmest of chances that oil can be found in Ghana. Because they took that chance, Ghana has now become a commercial oil destination.
May be others could have brought companies to Ghana to successfully explore for oil if the EO Group had not taken the initiative. May be others would have succeeded in securing our Independence from colonialism had Kwame Nkrumah not decided that a colonized Ghana was unacceptable. The fact remains that these pioneers took the initiative and succeeded. So why would a government that is now betting all its success on an oil discovery also spend more than one year fishing for something to discredit the very people through whose efforts that oil find became a reality in the first place? *If you could not thank your in-law for giving you a bride, you do not compound that lack of gratitude by stealing from him. If we cannot appreciate the EO Group for giving us oil, we must not compound our lack of gratitude by vilifying them.*
The story has been told many folds, but it must be told again. At the turn of the century, GNPC under the Rawlings administration had tried to get reputable oil companies to come to Ghana but to no avail. A combination of factors played a role in this frustration. First, the government’s policies surrounding oil exploration was not business-friendly especially considering that Ghana had no history of oil discoveries. Second, the low oil prices at that time made it an unwise investment considering the staggering required capital and the low probability of an oil find in what had become a “graveyard.” Third, the requisite technology had not advanced enough to explore for oil in the deep seas, and if one could find the technology, the cost involved was prohibitive. Last but not the least, GNPC under the management of Tsatsu Tsikata lacked the vision and tenacity to attract exploration companies of repute to explore our offshore prospects; instead, he was misguided by adventuring into businesss prepositions he had no clue in. The last time I investigated, that man was supposed to be a great lawyer but not an oil man, yet you would be hard pressed to point at any significant accomplishment of his in his own great profession of law. Could it just be that his apparent disdain for E.O. Group is simply a matter of jealousy for having failed to do what these two distinguished Ghanaians have accomplished?
When the NPP assumed office in 2001, it made oil discovery a national priority. Ghanaians in the Disapora were actively encouraged to source for oil companies, a focus that made Houston a frequent destination for energy sector officials. It was during such trips that George met with Mr. Van Dyke, CEO of Vanco Energy. Although Owusu would eventually lead Vanco to Ghana to solicit for an oil block, the two parties could not become parties to a Petroleum agreement because Owusu and Edusei had not yet formed a company. As a result, Vanco ended up securing a large, in fact, the largest block of all the companies that were in Ghana at the time, without EO involvement. For a duo that has been dubbed “Kufuor’s Boys,” how could it happen that they led a foreign company to Ghana, and yet that company secured an oil block without their involvement?
Vanco secured its Petroleum Agreement (PA) for the large block in August of 2002. George Owusu and Dr. Kwame Bawuah-Edusei quickly reorganized and formed the EO group to start searching for other oil companies right away. Three years later, GNPC was growing impatient with Vanco for “sitting” on its block. Word on the street was that Vanco merely came to secure the block and went around looking to sell it to a more serious explorer. Who could blame them? Why not have someone else invest the money to find oil in a known “graveyard?”
Meanwhile in 2003, EO had succeeded in convincing yet another Texas-based company to take a chance on Ghana. That is how Kosmos came to Ghana and secured a PA in July of 2004. Three years later in 2007, as Kosmos and the Ghana government proudly announced to the world that Ghana has discovered oil in commercial quantities, Vanco had yet to lift a finger. In fact, GNPC took back a portion of Vanco’s block due to inaction on the oil company’s part. But alas, three years later, Vanco now discovers oil.
Let’s do a double-take on the timeline: Owusu and Edusei lead Vanco to Ghana in early 2002. Vanco secures a block in August of 2002 without Owusu and Edusei’s involvement even though they led them to Ghana. This duo reorganizes and forms The EO Group and brings Kosmos Energy to Ghana in late 2003. Kosmos, EO, and Ghana sign a PA in July of 2004. Kosmos discovers oil in mid 2007. Vanco then gets serious and discovers oil three years later. Is it a stretch to suggest that Kosmos’ oil find may have lit the fire under Vanco’s feet to get serious about exploring its block? And if that is a fair suggestion, is it not also fair to credit EO for Vanco’s oil find considering all of the above?
If you do not agree with the immediately preceding premise, then may be the following would not make sense to you either. There is an old adage to the effect that if you could not thank your in-law for giving you a bride, you do not compound that lack of gratitude by stealing from him. But that is precisely what we as a nation are doing to the duo called the EO Group. While many of us were content with Ghana struggling along with Gold, Cocoa, and minute levels several other minerals, this group, based on available data at the time at GNPC, decided to gamble literally everything they had accomplished in their combined six decades of life in the United States on the slimmest of chances that oil can be found in Ghana. Because they took that chance, Ghana has now become a commercial oil destination.
May be others could have brought companies to Ghana to successfully explore for oil if the EO Group had not taken the initiative. May be others would have succeeded in securing our Independence from colonialism had Kwame Nkrumah not decided that a colonized Ghana was unacceptable. The fact remains that these pioneers took the initiative and succeeded. So why would a government that is now betting all its success on an oil discovery also spend more than one year fishing for something to discredit the very people through whose efforts that oil find became a reality in the first place? *If you could not thank your in-law for giving you a bride, you do not compound that lack of gratitude by stealing from him. If we cannot appreciate the EO Group for giving us oil, we must not compound our lack of gratitude by vilifying them.*
Monday, September 6, 2010
Results Mixed From Latest Ghana Offshore Oil Well
Tullow Oil PLC reported Wednesday mixed success in the latest appraisal on its large Jubilee oil field offshore Ghana.
The Mahogany Deep-2 well provided further confirmation of the size of the Jubilee field and found two new light oil reservoirs, but the deepest section of reservoir that the well was targeting contained only water.
"Confirming the southerly extent of the main Jubilee reservoirs and encountering two new oil pools takes us another step closer to realizing the full potential of the Greater Jubilee Area," said Tullow's Exploration Director Angus McCoss.
Tullow expects to produce first oil from Jubilee, which is estimated to contain between 600 million and 1.8 billion barrels of oil equivalent, in the fourth quarter of 2010. It's partners in the field are Anadarko Petroleum Corp. (APC) and Kosmos Energy, which has agreed to sell its share to ExxonMobil Corp.
The Mahogany Deep-2 well provided further confirmation of the size of the Jubilee field and found two new light oil reservoirs, but the deepest section of reservoir that the well was targeting contained only water.
"Confirming the southerly extent of the main Jubilee reservoirs and encountering two new oil pools takes us another step closer to realizing the full potential of the Greater Jubilee Area," said Tullow's Exploration Director Angus McCoss.
Tullow expects to produce first oil from Jubilee, which is estimated to contain between 600 million and 1.8 billion barrels of oil equivalent, in the fourth quarter of 2010. It's partners in the field are Anadarko Petroleum Corp. (APC) and Kosmos Energy, which has agreed to sell its share to ExxonMobil Corp.
Jubilee Field Stake: BP Out, Exxon In?
BP Plc, Europe’s second-biggest oil company, scrapped plans to bid for Kosmos Energy LLC’s stake in Ghana’s Jubilee field, two people familiar with the matter said.
Talks between BP and Ghana National Petroleum Corp. over a joint offer for Kosmos’s Ghanaian assets broke down in recent weeks, according to the people who declined to be identified because the negotiations were confidential. BP wants to focus on other projects, such as the Gulf of Mexico, one said.
BP’s withdrawal may pave the way for Exxon Mobil Corp.’s planned purchase of Kosmos’s Jubilee stake for at least $4 billion. With potential resources of 1.8 billion barrels, Jubilee has attracted attention from Chinese producers as well as BP as Ghana prepares to become one of Africa’s newest oil exporters this year.
Robert Wine, a spokesman for London-based BP, declined to comment. Exxon Mobil spokesman Patrick McGinn also declined comment, saying only that the company “routinely evaluates potential development opportunities around the world.” Dallas-based Kosmos, backed by Blackstone Group LP and Warburg Pincus LLC, said Oct. 12 that it agreed to sell its Ghana assets, including a 23.49 percent stake in Jubilee, to Exxon Mobil, the largest U.S. oil company. The deal is exclusive, Kosmos Chief Financial Officer Greg Dunlevy said at the time.
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Ghana National Petroleum, the state-owned energy company known as GNPC, has threatened to block the sale, asserting its “absolute” approval rights and saying it may buy the stake itself and then bring in partners. “The government of Ghana has clearly stated that it is interested in, and is prepared to buy, the share of Kosmos in the Jubilee field,” Energy Ministry spokesman Michael Sarpong said by telephone today from Accra. London-based BP had hired Goldman Sachs Group Inc. to advise it on Jubilee, two people familiar with the matter said in October.
Ghana’s Energy Ministry said in October that the government had held talks with Chinese oil executives over Jubilee. There has been contact with Cnooc Ltd., the listed arm of state- controlled China National Offshore Oil Corp., Sarpong said at that time. A month later, CNOOC said Ghana had blocked the company from making a bid.
Tullow Oil Plc, the U.K. explorer that operates Jubilee, said in July that Ghana will become one of the world’s top 50 oil producers after the government approved a plan to start output from the offshore field in the second half of 2010. The West African nation expects to pump 500,000 barrels of oil a day by 2014.
Tullow holds a 34.7 percent stake in Jubilee while Anadarko Petroleum Corp. owns 23.49 percent. Sabre Oil & Gas holds 2.81 percent, EO Group has 1.75 percent, leaving GNPC with 13.75 percent. The field was discovered in June 2007.
Talks between BP and Ghana National Petroleum Corp. over a joint offer for Kosmos’s Ghanaian assets broke down in recent weeks, according to the people who declined to be identified because the negotiations were confidential. BP wants to focus on other projects, such as the Gulf of Mexico, one said.
BP’s withdrawal may pave the way for Exxon Mobil Corp.’s planned purchase of Kosmos’s Jubilee stake for at least $4 billion. With potential resources of 1.8 billion barrels, Jubilee has attracted attention from Chinese producers as well as BP as Ghana prepares to become one of Africa’s newest oil exporters this year.
Robert Wine, a spokesman for London-based BP, declined to comment. Exxon Mobil spokesman Patrick McGinn also declined comment, saying only that the company “routinely evaluates potential development opportunities around the world.” Dallas-based Kosmos, backed by Blackstone Group LP and Warburg Pincus LLC, said Oct. 12 that it agreed to sell its Ghana assets, including a 23.49 percent stake in Jubilee, to Exxon Mobil, the largest U.S. oil company. The deal is exclusive, Kosmos Chief Financial Officer Greg Dunlevy said at the time.
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Ghana National Petroleum, the state-owned energy company known as GNPC, has threatened to block the sale, asserting its “absolute” approval rights and saying it may buy the stake itself and then bring in partners. “The government of Ghana has clearly stated that it is interested in, and is prepared to buy, the share of Kosmos in the Jubilee field,” Energy Ministry spokesman Michael Sarpong said by telephone today from Accra. London-based BP had hired Goldman Sachs Group Inc. to advise it on Jubilee, two people familiar with the matter said in October.
Ghana’s Energy Ministry said in October that the government had held talks with Chinese oil executives over Jubilee. There has been contact with Cnooc Ltd., the listed arm of state- controlled China National Offshore Oil Corp., Sarpong said at that time. A month later, CNOOC said Ghana had blocked the company from making a bid.
Tullow Oil Plc, the U.K. explorer that operates Jubilee, said in July that Ghana will become one of the world’s top 50 oil producers after the government approved a plan to start output from the offshore field in the second half of 2010. The West African nation expects to pump 500,000 barrels of oil a day by 2014.
Tullow holds a 34.7 percent stake in Jubilee while Anadarko Petroleum Corp. owns 23.49 percent. Sabre Oil & Gas holds 2.81 percent, EO Group has 1.75 percent, leaving GNPC with 13.75 percent. The field was discovered in June 2007.
Oil To Flow This Year
Tullow Oil is on course to pump the first oil from Ghana's giant Jubilee field in the last quarter of 2010, a company official said on Wednesday.
"We are 298 days away from pumping the first oil and so far everything is on target," Anthony Djokoto, senior legal adviser at Tullow in Ghana told Reuters.
The field is estimated to hold as much as 1.8 billion barrels of oil, and output could ramp up to 150,000 barrels per day within months of startup.
Ghana, a major gold and cocoa producer, expects income from oil exports to significantly boost its economy.
Djokoto said Tullow obtained the first part of certification from the Environmental Protection Agency on December 31.
"Operationally and legally, we are on course," he said.
"We don't see any obstacle or any legal hurdle that could derail this target," Djokoto said when asked about the possible impact of the standoff between fellow stakeholder Kosmos Energy and state regulator Ghana National Petroleum Corporation (GNPC) on the intended production date.
GNPC is in protracted talks to acquire Kosmos' stake in the Jubilee field, following reports late last year that ExxonMobil had struck a deal to buy the share from Kosmos for $4 billion.
"We don't see that affecting our operations in any way," Djokoto said, adding major shipments of supplies for construction at the production site had been completed.
In December, China Development Bank said it had agreed to lend GNPC money to pay for infrastructure projects in the Jubilee field, without giving details of how much the bank would be prepared to lend.
"We are 298 days away from pumping the first oil and so far everything is on target," Anthony Djokoto, senior legal adviser at Tullow in Ghana told Reuters.
The field is estimated to hold as much as 1.8 billion barrels of oil, and output could ramp up to 150,000 barrels per day within months of startup.
Ghana, a major gold and cocoa producer, expects income from oil exports to significantly boost its economy.
Djokoto said Tullow obtained the first part of certification from the Environmental Protection Agency on December 31.
"Operationally and legally, we are on course," he said.
"We don't see any obstacle or any legal hurdle that could derail this target," Djokoto said when asked about the possible impact of the standoff between fellow stakeholder Kosmos Energy and state regulator Ghana National Petroleum Corporation (GNPC) on the intended production date.
GNPC is in protracted talks to acquire Kosmos' stake in the Jubilee field, following reports late last year that ExxonMobil had struck a deal to buy the share from Kosmos for $4 billion.
"We don't see that affecting our operations in any way," Djokoto said, adding major shipments of supplies for construction at the production site had been completed.
In December, China Development Bank said it had agreed to lend GNPC money to pay for infrastructure projects in the Jubilee field, without giving details of how much the bank would be prepared to lend.
...Tweneboa Field Is Major Oil, Condensate Discovery
Tullow Oil PLC said Thursday that an appraisal well drilled on the Tweneboa field offshore Ghana has shown it to be a major oil and gas-condensate field.
This success adds to the commercial potential of a new oil region off the coast of West Africa, where Tullow and partners Anadarko Petroleum Corp. (APC) and Kosmos Energy have made some major new discoveries.
"Tweneboa-2...has successfully proven the significant extent of a major new oil and gas-condensate field offshore Ghana. Such an achievement provides a very good start to our exciting 2010 Equatorial Atlantic [drilling] campaign," said Tullow's Exploration Director Angus McCoss.
The Tweneboa-2 well was drilled in the Deepwater Tano offshore block around 6 kilometers southeast of the original Tweneboa-1 discovery well. It intersected a combined hydrocarbon column of at least 350 meters, the company said in a statement.
Tullow's Jubilee field, which could contain up to 1.8 billion barrels equivalent of oil and gas, straddles Deepwater Tano and the neighboring West Cape Three Points block.
This latest success may have some bearing on ExxonMobil Corp.'s (XOM) desire to enter Ghana's oil sector. Kosmos agreed last year to sell ExxonMobil its 30.9% of the West Cape Three Points block and 18% of the Deepwater Tano block for around $4 billion.
However, the Ghanaian government is unhappy with that deal and has been looking for other companies to buy the Kosmos stake in a joint venture with the Ghana National Petroleum Company.
The Tweneboa-2 well was drilled in the Deepwater Tano offshore block around 6 kilometers southeast of the original Tweneboa-1 discovery well. It intersected a combined hydrocarbon column of at least 350 meters, the company said in a statement.
This success adds to the commercial potential of a new oil region off the coast of West Africa, where Tullow and partners Anadarko Petroleum Corp. (APC) and Kosmos Energy have made some major new discoveries.
"Tweneboa-2...has successfully proven the significant extent of a major new oil and gas-condensate field offshore Ghana. Such an achievement provides a very good start to our exciting 2010 Equatorial Atlantic [drilling] campaign," said Tullow's Exploration Director Angus McCoss.
The Tweneboa-2 well was drilled in the Deepwater Tano offshore block around 6 kilometers southeast of the original Tweneboa-1 discovery well. It intersected a combined hydrocarbon column of at least 350 meters, the company said in a statement.
Tullow's Jubilee field, which could contain up to 1.8 billion barrels equivalent of oil and gas, straddles Deepwater Tano and the neighboring West Cape Three Points block.
This latest success may have some bearing on ExxonMobil Corp.'s (XOM) desire to enter Ghana's oil sector. Kosmos agreed last year to sell ExxonMobil its 30.9% of the West Cape Three Points block and 18% of the Deepwater Tano block for around $4 billion.
However, the Ghanaian government is unhappy with that deal and has been looking for other companies to buy the Kosmos stake in a joint venture with the Ghana National Petroleum Company.
The Tweneboa-2 well was drilled in the Deepwater Tano offshore block around 6 kilometers southeast of the original Tweneboa-1 discovery well. It intersected a combined hydrocarbon column of at least 350 meters, the company said in a statement.
Ghana blocks Kosmos-ExxonMobil deal
PORT OF SPAIN, Feb. 5-- Minister of Energy Joe Oteng-Adjei denied Ghana would take by force Kosmos Energy LLC’s interest in Jubilee oil field, but the company will not be allowed to sell its stake to ExxonMobil Corp.
Speaking in Port of Spain at an energy conference, Oteng-Adjei said Ghana National Petroleum Corp. (GNPC) is interested in purchasing Kosmos’ stake in Jubilee field and has the government’s full backing.
Kosmos planned to sell its interest to ExxonMobil in a deal valued at $4 billion.
Oteng-Adjei told the conference, “What we are saying is that this is an opportunity for us as a country to benefit. What we are saying is that Kosmos as an investor has a fair value to the assets they have invested in, but Kosmos cannot decide on who enters into the country to participate and join with us in the development of our country.”
He said Ghana has its own development policies and priorities.
Oteng-Adjei tried to calm fears of oil and gas producers at the conference, telling them investors are safe in Ghana and his country has no interest in taking away assets of Kosmos or any other investor. He said, “We allow every investor to get a fair value of return on their assets and investments that they put into the country. We want to work with them to ensure that whoever they bring into the country is mutually acceptable. But they have no right to impose on us anybody, any entity that does not share our development policies.”
Tullow Oil PLC operates Jubilee field, which was discovered in 2007 in deep water off Ghana. It estimates Jubilee is a continuous stratigraphic trap with combined hydrocarbon columns in excess of 600 m, with 600 million-1.8 billion bbl of recoverable hydrocarbons.
Oteng-Adjei said Ghana does not have production-sharing contracts, and the carried participation by its state oil company is 10%. He said the only real return to the government was in taxes and royalties. This is one reason Ghana wants GNPC to obtain Kosmos’ stake, he said.
Oteng-Adjei said other Jubilee field partners have the financial and technical competence to compete the project even if Kosmos is not part of the consortium.
Tullow holds a 34.7% stake in Jubilee, while Anadarko Petroleum Corp. and Kosmos each hold 23.49%. Sabre Oil & Gas Ltd. holds 2.81, and EO Group has 1.75%.
Speaking in Port of Spain at an energy conference, Oteng-Adjei said Ghana National Petroleum Corp. (GNPC) is interested in purchasing Kosmos’ stake in Jubilee field and has the government’s full backing.
Kosmos planned to sell its interest to ExxonMobil in a deal valued at $4 billion.
Oteng-Adjei told the conference, “What we are saying is that this is an opportunity for us as a country to benefit. What we are saying is that Kosmos as an investor has a fair value to the assets they have invested in, but Kosmos cannot decide on who enters into the country to participate and join with us in the development of our country.”
He said Ghana has its own development policies and priorities.
Oteng-Adjei tried to calm fears of oil and gas producers at the conference, telling them investors are safe in Ghana and his country has no interest in taking away assets of Kosmos or any other investor. He said, “We allow every investor to get a fair value of return on their assets and investments that they put into the country. We want to work with them to ensure that whoever they bring into the country is mutually acceptable. But they have no right to impose on us anybody, any entity that does not share our development policies.”
Tullow Oil PLC operates Jubilee field, which was discovered in 2007 in deep water off Ghana. It estimates Jubilee is a continuous stratigraphic trap with combined hydrocarbon columns in excess of 600 m, with 600 million-1.8 billion bbl of recoverable hydrocarbons.
Oteng-Adjei said Ghana does not have production-sharing contracts, and the carried participation by its state oil company is 10%. He said the only real return to the government was in taxes and royalties. This is one reason Ghana wants GNPC to obtain Kosmos’ stake, he said.
Oteng-Adjei said other Jubilee field partners have the financial and technical competence to compete the project even if Kosmos is not part of the consortium.
Tullow holds a 34.7% stake in Jubilee, while Anadarko Petroleum Corp. and Kosmos each hold 23.49%. Sabre Oil & Gas Ltd. holds 2.81, and EO Group has 1.75%.
Yet Another ‘Significant’ Oil, Gas Discovery
Lukoil, Vanco Make ‘Significant’ Oil, Gas Discovery in Ghana
AO Lukoil , Russia’s second-biggest oil producer, and closely held Vanco Energy Co. made “a significant” oil and gas discovery off Ghana.
The partners together with Ghana National Petroleum Corp. drilled a well at the Dzata field of the Cape Three Points deep- water block in the Gulf of Guinea, Moscow-based Lukoil said today in a statement. The Dzata-1 well, drilled to a depth of about 4,500 meters (14,500 feet) tapped a 94-meter-thick hydrocarbon column.
“The primary reservoir sandstone contains gas and light oil,” Lukoil said. “The newly discovered hydrocarbon reserves are assumed to be quite significant.” Ghana is set to become one of Africa’s newest oil exporters in late 2010 when production begins at the Jubilee field, which has potential resources of as many as 1.8 billion barrels, according to Tullow Oil Plc, its operator. Jubilee is located about 70 miles from Lukoil and Vanco’s prospect.
Lukoil plans to drill three exploration wells offshore Ghana and neighboring Ivory Coast, Chief Executive Officer Vagit Alekperov said in April.
AO Lukoil , Russia’s second-biggest oil producer, and closely held Vanco Energy Co. made “a significant” oil and gas discovery off Ghana.
The partners together with Ghana National Petroleum Corp. drilled a well at the Dzata field of the Cape Three Points deep- water block in the Gulf of Guinea, Moscow-based Lukoil said today in a statement. The Dzata-1 well, drilled to a depth of about 4,500 meters (14,500 feet) tapped a 94-meter-thick hydrocarbon column.
“The primary reservoir sandstone contains gas and light oil,” Lukoil said. “The newly discovered hydrocarbon reserves are assumed to be quite significant.” Ghana is set to become one of Africa’s newest oil exporters in late 2010 when production begins at the Jubilee field, which has potential resources of as many as 1.8 billion barrels, according to Tullow Oil Plc, its operator. Jubilee is located about 70 miles from Lukoil and Vanco’s prospect.
Lukoil plans to drill three exploration wells offshore Ghana and neighboring Ivory Coast, Chief Executive Officer Vagit Alekperov said in April.
Ghana 'will be an African tiger'
Ghana's President John Kufuor says the discovery of the country's first major oil deposit could turn the West African country into an "African tiger".
"Even without oil, we are doing so well... With oil as a shot in the arm, we're going to fly," he told the BBC.
"My joy is that I'll go down in history as the president under whose watch oil was found to turn the economy of Ghana around for the better," he said.
The discovery of 600m barrels of light oil offshore was announced on Monday.
Reserves in the Mahogany exploration well were far greater than the 250m barrels that UK-based firm Tullow Oil had earlier forecast.
Tullow, which saw its shares rise more than 12% on the news, jointly owns the West Cape block where the drilling took place with Anadarko Petroleum.
'Destiny'
Correspondents say champagne bottles were popping at Osu Castle, the seat of Ghana's government, after the announcement.
Mr Kufuor said the discovery would give a major boost to Ghana's economy.
"Oil is money, and we need money to do the schools, the roads, the hospitals. If you find oil, you manage it well, can you complain about that?" he told the BBC's Focus on Africa programme.
He dismissed suggestions that Ghana may follow in the footsteps of other countries that have mismanaged their oil wealth.
"Some are doing it well and I assure you if others failed, Ghana will succeed because this is our destiny to set the good pace for where we are. So we're going to use it well," he said.
"We're going to really zoom, accelerate, and if everything works, which I pray will happen positively, you come back in five years, and you'll see that Ghana truly is the African tiger, in economic terms for development."
His sentiments were echoed in many of Ghana's newspaper headlines on Tuesday.
The Statesman hailed the Gold Coast, Ghana's name under British rule, finding "black gold" and the Accra Daily Mail leads with the headline: "Thank God. Oil at last Thank God!"
The BBC's Will Ross in Ghana says the country is the midst of an energy crisis and every four days everybody has their electricity switched off for more 24 hours.
Ghana is described as somewhat of a success story in Africa but the country does suffer from widespread poverty and also has alarming levels of corruption, our correspondent says.
Tullow chief executive Aidan Heavey said the discovery was one of the biggest oil discoveries in Africa in recent times, but warned it could be up to seven years before the oil started to flow.
Tullow Oil holds a 22.9% stake in the West Cape Three Points licence and just under 50% in the Deepwater Tano licence.
The move comes as foreign firms are increasingly tapping into Africa for oil.
Do you think Ghanaians will see the benefits of the oil revenue? How should the money be spent?
Your comments:
I am very happy for Ghana. To be frank Ghana is the most successful country in Africa with the little resources they have. Now that there is oil, just as President John K said, Ghana will become African tiger. I am optimistic that in the next five to 10 years, Ghana will become African heaven. I am praying that Nigerian President Mr Yar'Adua should copy Ghana in line of administration. GOD BLESS GHANA.
Victor Okorie, Nigerian living in Accra
I work for Chevron and I am Ghanaian. I have seen oil mismanaged in Nigeria, Equatorial Guinea and Angola. Why should Ghana be any different? After all look how we have managed our other natural resources like gold and diamonds... the reality is that all or most of the revenue will be lost through corruption, mismanagement. Thank God for oil - I don't think so. I would trade this for zero corruption, less brain drain, better management any day.
Anonymous
As the saying goes, if you want to know how your wife will look like in her 40s and 50s, look at your mother-in-law. Oil in Africa normally comes with conflict and corruption. I would rather be happy than having oil which will cause division among tribes in our only country. God bless Ghana.
Kwame Nkrumah, Kumasi & London
For as long as the people holding shares in the exploratory and managing conglomerates are NOT Ghanaians, the little revenue that the government will get through royalties and taxes will never reach an ordinary Ghanaian. Almost all the proceeds are externalised by the share holders to their homelands and the government's revenue ends in the leaders' pockets. Who does NOT know an African leader? Look at my country. All we pray is to see the current generation of leaders pass, maybe God will bless us with progressive brains in the next generation of ours. Thank you.
Solomon Katete, Lusaka, Zambia
I am happy for Ghana and pray this discovery doesn't bring disunity in the country just as in the case of Nigeria. In Nigeria the money realized from this oil had not been used for the development of the country rather it had gone to the pocket of few, selfish individuals (leaders).
Ishaya Nubunga, Taraba, Nigeria
Ghana is indeed a blessed nation. However their leaders should not make this discovery of black gold as a means to enrich themselves as most of our previous and some of our current African leaders are doing. God bless Ghana and its people.
Brinsley Johnson, Freetown, Sierra Leone
Let's hope Ghana does spend the oil money on roads and hospitals, not on palaces and armies as in most oil states.
Steve, London, UK
Even without oil in Ghana, we have been doing well. Oil in Ghana has the cheapest price in Africa compared to Nigeria, Angola, Algeria, etc where oil is produced. So for me, with proper management, we shall actually reach the middle income status by 2015 as the president is envisaging. There should be no envy of any sort from any party. It is a national feat.
Methodius Yeldie Bashiru Suglo, Wa, Ghana
"Even without oil, we are doing so well... With oil as a shot in the arm, we're going to fly," he told the BBC.
"My joy is that I'll go down in history as the president under whose watch oil was found to turn the economy of Ghana around for the better," he said.
The discovery of 600m barrels of light oil offshore was announced on Monday.
Reserves in the Mahogany exploration well were far greater than the 250m barrels that UK-based firm Tullow Oil had earlier forecast.
Tullow, which saw its shares rise more than 12% on the news, jointly owns the West Cape block where the drilling took place with Anadarko Petroleum.
'Destiny'
Correspondents say champagne bottles were popping at Osu Castle, the seat of Ghana's government, after the announcement.
![]() | Ghanaians give their views on their country's oil discovery ![]() |
Mr Kufuor said the discovery would give a major boost to Ghana's economy.
"Oil is money, and we need money to do the schools, the roads, the hospitals. If you find oil, you manage it well, can you complain about that?" he told the BBC's Focus on Africa programme.
He dismissed suggestions that Ghana may follow in the footsteps of other countries that have mismanaged their oil wealth.
![]() | ![]() ![]() Ghana's President John Kufuor |
"Some are doing it well and I assure you if others failed, Ghana will succeed because this is our destiny to set the good pace for where we are. So we're going to use it well," he said.
"We're going to really zoom, accelerate, and if everything works, which I pray will happen positively, you come back in five years, and you'll see that Ghana truly is the African tiger, in economic terms for development."
His sentiments were echoed in many of Ghana's newspaper headlines on Tuesday.
The Statesman hailed the Gold Coast, Ghana's name under British rule, finding "black gold" and the Accra Daily Mail leads with the headline: "Thank God. Oil at last Thank God!"
The BBC's Will Ross in Ghana says the country is the midst of an energy crisis and every four days everybody has their electricity switched off for more 24 hours.
Ghana is described as somewhat of a success story in Africa but the country does suffer from widespread poverty and also has alarming levels of corruption, our correspondent says.
Tullow chief executive Aidan Heavey said the discovery was one of the biggest oil discoveries in Africa in recent times, but warned it could be up to seven years before the oil started to flow.
Tullow Oil holds a 22.9% stake in the West Cape Three Points licence and just under 50% in the Deepwater Tano licence.
The move comes as foreign firms are increasingly tapping into Africa for oil.
Do you think Ghanaians will see the benefits of the oil revenue? How should the money be spent?
Your comments:
I am very happy for Ghana. To be frank Ghana is the most successful country in Africa with the little resources they have. Now that there is oil, just as President John K said, Ghana will become African tiger. I am optimistic that in the next five to 10 years, Ghana will become African heaven. I am praying that Nigerian President Mr Yar'Adua should copy Ghana in line of administration. GOD BLESS GHANA.
Victor Okorie, Nigerian living in Accra
I work for Chevron and I am Ghanaian. I have seen oil mismanaged in Nigeria, Equatorial Guinea and Angola. Why should Ghana be any different? After all look how we have managed our other natural resources like gold and diamonds... the reality is that all or most of the revenue will be lost through corruption, mismanagement. Thank God for oil - I don't think so. I would trade this for zero corruption, less brain drain, better management any day.
Anonymous
As the saying goes, if you want to know how your wife will look like in her 40s and 50s, look at your mother-in-law. Oil in Africa normally comes with conflict and corruption. I would rather be happy than having oil which will cause division among tribes in our only country. God bless Ghana.
Kwame Nkrumah, Kumasi & London
For as long as the people holding shares in the exploratory and managing conglomerates are NOT Ghanaians, the little revenue that the government will get through royalties and taxes will never reach an ordinary Ghanaian. Almost all the proceeds are externalised by the share holders to their homelands and the government's revenue ends in the leaders' pockets. Who does NOT know an African leader? Look at my country. All we pray is to see the current generation of leaders pass, maybe God will bless us with progressive brains in the next generation of ours. Thank you.
Solomon Katete, Lusaka, Zambia
I am happy for Ghana and pray this discovery doesn't bring disunity in the country just as in the case of Nigeria. In Nigeria the money realized from this oil had not been used for the development of the country rather it had gone to the pocket of few, selfish individuals (leaders).
Ishaya Nubunga, Taraba, Nigeria
Ghana is indeed a blessed nation. However their leaders should not make this discovery of black gold as a means to enrich themselves as most of our previous and some of our current African leaders are doing. God bless Ghana and its people.
Brinsley Johnson, Freetown, Sierra Leone
Let's hope Ghana does spend the oil money on roads and hospitals, not on palaces and armies as in most oil states.
Steve, London, UK
Even without oil in Ghana, we have been doing well. Oil in Ghana has the cheapest price in Africa compared to Nigeria, Angola, Algeria, etc where oil is produced. So for me, with proper management, we shall actually reach the middle income status by 2015 as the president is envisaging. There should be no envy of any sort from any party. It is a national feat.
Methodius Yeldie Bashiru Suglo, Wa, Ghana
UK's Tullow uncovers oil in Ghana Oil pump
UK firm Tullow Oil has announced the discovery of 600 million barrels of light oil offshore from Ghana.
Reserves in the Mahogany exploration well were far greater than the 250 million barrels than the firm had earlier forecast, it said.
Tullow - which saw its shares rise 10% on the news - jointly owns the West Cape block where the drilling took place with Anadarko Petroleum.
It was one of the biggest oil finds in Africa in recent times, Tullow said.
Tullow and Anadarko firms share rights to the adjacent Tano basin, which could yield more oil.
"Based on evidence to date, ultimate reserves are likely to be materially in excess of previous estimates, with some high potential zones still to be drilled," said Tullow chief executive Aidan Heavey.
However, Mr Heavey warned that it could be up to seven years before the oil started to flow.
'Boost to economy'
Ghana's President John Kufuor told the BBC that the discovery would give a major boost to Ghana's economy.
"Oil is money, and we need money to do the schools, the roads, the hospitals. If you find oil, you manage it well, can you complain about that?
"Even without oil, we are doing so well, already. Now, with oil as a shot in the arm, we're going to fly," he said.
Tullow Oil holds a 22.9% stake in the West Cape Three Points licence and just under 50% in the Deepwater Tano licence.
The move comes as foreign firms are increasingly tapping into Africa for oil.
Tullow shares closed up more than 12% on the news in trading in London.
Reserves in the Mahogany exploration well were far greater than the 250 million barrels than the firm had earlier forecast, it said.
Tullow - which saw its shares rise 10% on the news - jointly owns the West Cape block where the drilling took place with Anadarko Petroleum.
It was one of the biggest oil finds in Africa in recent times, Tullow said.
Tullow and Anadarko firms share rights to the adjacent Tano basin, which could yield more oil.
![]() | ![]() ![]() John Kufuor, President of Ghana |
"Based on evidence to date, ultimate reserves are likely to be materially in excess of previous estimates, with some high potential zones still to be drilled," said Tullow chief executive Aidan Heavey.
However, Mr Heavey warned that it could be up to seven years before the oil started to flow.
'Boost to economy'
Ghana's President John Kufuor told the BBC that the discovery would give a major boost to Ghana's economy.
"Oil is money, and we need money to do the schools, the roads, the hospitals. If you find oil, you manage it well, can you complain about that?
"Even without oil, we are doing so well, already. Now, with oil as a shot in the arm, we're going to fly," he said.
Tullow Oil holds a 22.9% stake in the West Cape Three Points licence and just under 50% in the Deepwater Tano licence.
The move comes as foreign firms are increasingly tapping into Africa for oil.
Tullow shares closed up more than 12% on the news in trading in London.
Thursday, September 2, 2010
Ghana, I.Coast to draw border of oil-rich sea zone
Ghana will set up a commission by the end of the month to begin talks with Ivory Coast over their maritime border, negotiations that could be complicated by Ghana's big offshore oil finds.
"I expect the 13-member commission to be inaugurated by early next week and for preparatory work to begin in April," a Ghanaian source close to the issue said on Friday on condition of anonymity.
Ivory Coast has for years sought to clarify its offshore border with Ghana, but recently renewed its efforts by petitioning the United Nations after Ghana discovered additional oil reserves off its coast.
Ivory Coast's energy minister, Augustin Komoe Kouadio, told Reuters earlier this week he did not expect the negotiations to become a dispute over oil rights.
"I affirm there will not be a fight over oil between Ivory Coast and Ghana," he said.
Ghana, the world's second-biggest producer of cocoa behind Ivory Coast, is set to become a commercial oil producer by the end of this year as production from the giant offshore Jubilee oilfield comes on line.
Late in February, Russian oil firm LukOil announced a significant oil find offshore Ghana in a discovery that will add to the West African country's already sizeable reserves.
"I expect the 13-member commission to be inaugurated by early next week and for preparatory work to begin in April," a Ghanaian source close to the issue said on Friday on condition of anonymity.
Ivory Coast has for years sought to clarify its offshore border with Ghana, but recently renewed its efforts by petitioning the United Nations after Ghana discovered additional oil reserves off its coast.
Ivory Coast's energy minister, Augustin Komoe Kouadio, told Reuters earlier this week he did not expect the negotiations to become a dispute over oil rights.
"I affirm there will not be a fight over oil between Ivory Coast and Ghana," he said.
Ghana, the world's second-biggest producer of cocoa behind Ivory Coast, is set to become a commercial oil producer by the end of this year as production from the giant offshore Jubilee oilfield comes on line.
Late in February, Russian oil firm LukOil announced a significant oil find offshore Ghana in a discovery that will add to the West African country's already sizeable reserves.
Mills' Advisors Divided Over Kosmos/ExxonMobil Deal
• Ato Ahwoi GNPC Remains Adamant On Rescuing The Lost Shares
President Mills’ policy and economic advisors are sharply divided over the Kosmos/Exxon-Mobil deal in which Kosmos, with impunity offloaded its 25% shares in Ghana’s jubilee fields to Exxon-Mobil through the ‘backdoor,’ intelligence information available to The Catalyst reveals.
Whiles some want government to throw in the towel and allow Kosmos and Exxon-Mobil to have their way, a few others think otherwise, a situation that leaves government with a weak front in the matter.
This is the result of frantic efforts by Exxon-Mobil to get government to soften its stance on what the government described as ‘breach of agreement’ regarding Kosmos’ unilateral decision to offload its 25% shares in Ghana’s jubilee fields to ExxonMobil.
Officials of Exxon-Mobil, who are determined to call the bluff of the Ghana government, jetted into the country in a bid to engage persons within government and others who are close to the presidency as part of their decision to bulldoze their way through to getting government to endorse the impunity being perpetuated on the people of Ghana by Kosmos and Exxon-Mobil.
Key personalities and advisors to the president believed to be helping the course of Exxon-Mobil and Kosmos against, what our sources called, the national interest include Mr Kofi Annan, former UN secretary General, Ishmael Yamson, former chairman of Unilever, Mr Henry Martey Newman, Chief of Staff and Dr Cadman Mills, the President’s brother.
This has been attributed to excessive western pressure on some of these individuals as well as government.
Already, Kosmos and Exxon-Mobil have committed allies in the opposition New Patriotic Party (NPP).
This paper’s sources say the only person among the President’s advisors who has remained absolutely resolute is Mr. Ato Ahwoi, the current Board Chairman of Ghana National Petroleum Corporation. Being supported by a handful of others, Mr Ato Ahwoi is said to have so far remained firm in seeking to rescue the drowning 25% Kosmos shares, in the jubilee fields, for the people of Ghana. An intelligence source has hinted The Catalyst that preparations are being made by Exxon-Mobil officials to have an exclusive and strategic meeting with Mr Ato Ahwoi in order to get him to back down and make way for them to finally perpetuate the impunity.
As per the agreement, by Kosmos’ decision to offload its shares, Ghana National Petroleum Corporation (GNPC) must be given the first priority to buy the shares. Ghana’s Petroleum exploration and production law, PNDC Law 84, section 8 states that “A petroleum agreement entered into under this Law shall not directly or indirectly be assigned in whole or in part, by the holder of such agreement to another person without the prior consent in writing of the secretary.” The government of Ghana initially made it clear it will ensure the right thing is done as far as this deal is concerned. Advisors of President Mills, The Catalyst has learnt, were initially unanimous on the government position to do everything in its power to get back the ‘lost’, shares by ensuring a strict adherence to the terms of the agreement by both government of Ghana and Kosmos. But The Catalyst Intelligence sources say most of President Mills’ advisors are beginning to soften their stance on the matter. Surprisingly, some of them have decided to join the Exxon-Mobil bandwagon.
Reports say President John Evans Atta Mills, despite his government’s initial tough position, has requested Exxon-Mobil to submit a proposal of its interest to buy the shares of Kosmos energy in Ghana's jubilee fields. This followed a meeting with all interested parties in the deal at the Castle, Osu. But this has not gone down well with the Ato Ahwoi-led group, who are in the minority. Stay tuned.
President Mills’ policy and economic advisors are sharply divided over the Kosmos/Exxon-Mobil deal in which Kosmos, with impunity offloaded its 25% shares in Ghana’s jubilee fields to Exxon-Mobil through the ‘backdoor,’ intelligence information available to The Catalyst reveals.
Whiles some want government to throw in the towel and allow Kosmos and Exxon-Mobil to have their way, a few others think otherwise, a situation that leaves government with a weak front in the matter.
This is the result of frantic efforts by Exxon-Mobil to get government to soften its stance on what the government described as ‘breach of agreement’ regarding Kosmos’ unilateral decision to offload its 25% shares in Ghana’s jubilee fields to ExxonMobil.
Officials of Exxon-Mobil, who are determined to call the bluff of the Ghana government, jetted into the country in a bid to engage persons within government and others who are close to the presidency as part of their decision to bulldoze their way through to getting government to endorse the impunity being perpetuated on the people of Ghana by Kosmos and Exxon-Mobil.
Key personalities and advisors to the president believed to be helping the course of Exxon-Mobil and Kosmos against, what our sources called, the national interest include Mr Kofi Annan, former UN secretary General, Ishmael Yamson, former chairman of Unilever, Mr Henry Martey Newman, Chief of Staff and Dr Cadman Mills, the President’s brother.
This has been attributed to excessive western pressure on some of these individuals as well as government.
Already, Kosmos and Exxon-Mobil have committed allies in the opposition New Patriotic Party (NPP).
This paper’s sources say the only person among the President’s advisors who has remained absolutely resolute is Mr. Ato Ahwoi, the current Board Chairman of Ghana National Petroleum Corporation. Being supported by a handful of others, Mr Ato Ahwoi is said to have so far remained firm in seeking to rescue the drowning 25% Kosmos shares, in the jubilee fields, for the people of Ghana. An intelligence source has hinted The Catalyst that preparations are being made by Exxon-Mobil officials to have an exclusive and strategic meeting with Mr Ato Ahwoi in order to get him to back down and make way for them to finally perpetuate the impunity.
As per the agreement, by Kosmos’ decision to offload its shares, Ghana National Petroleum Corporation (GNPC) must be given the first priority to buy the shares. Ghana’s Petroleum exploration and production law, PNDC Law 84, section 8 states that “A petroleum agreement entered into under this Law shall not directly or indirectly be assigned in whole or in part, by the holder of such agreement to another person without the prior consent in writing of the secretary.” The government of Ghana initially made it clear it will ensure the right thing is done as far as this deal is concerned. Advisors of President Mills, The Catalyst has learnt, were initially unanimous on the government position to do everything in its power to get back the ‘lost’, shares by ensuring a strict adherence to the terms of the agreement by both government of Ghana and Kosmos. But The Catalyst Intelligence sources say most of President Mills’ advisors are beginning to soften their stance on the matter. Surprisingly, some of them have decided to join the Exxon-Mobil bandwagon.
Reports say President John Evans Atta Mills, despite his government’s initial tough position, has requested Exxon-Mobil to submit a proposal of its interest to buy the shares of Kosmos energy in Ghana's jubilee fields. This followed a meeting with all interested parties in the deal at the Castle, Osu. But this has not gone down well with the Ato Ahwoi-led group, who are in the minority. Stay tuned.
Anadarko Announces Discovery Offshore Ghana
HOUSTON, Jul 26, 2010 -- Anadarko Petroleum Corporation today announced another significant discovery offshore Ghana at the Owo prospect in the Deepwater Tano Block. The discovery well encountered approximately 174 net feet of high-quality oil pay in two zones of stacked Turonian-age reservoir sands contained within a gross vertical reservoir interval of more than 500 feet. Pressure data indicates that these zones are part of the same accumulation, and the oil appears to be light crude between 33 and 36 degrees API.
"Building on the success of Jubilee and Tweneboa, Owo marks the partnership's third substantial discovery offshore Ghana and continues to enhance the gross resource potential of this prolific area and validate the quality of our geologic models," said Bob Daniels, Anadarko Sr. Vice President, Worldwide Exploration. "We plan to continue an active drilling program offshore Ghana through the end of this year and into 2011 with multiple appraisal wells planned for both the Tweneboa field and now the adjacent Owo discovery. In addition, we expect to resume the westward expansion of our exploration activity in the Cretaceous Fan play, where we've identified more than 30 prospects and leads with size and geologic characteristics similar to the Jubilee field across our 8-million-gross-acre position offshore Ghana, Cote d'Ivoire, Liberia and Sierra Leone."
The Owo-1 well has been drilled to a total depth of approximately 12,765 feet in about 4,685 feet of water. The partnership plans to sidetrack the well to further define the sand continuity as well as test a deeper and laterally offset part of the Owo channel system. Cores are also planned in the well to provide additional reservoir data needed for a potential development plan. After the sidetrack is complete, the rig will be mobilized to drill the Onyina prospect that also is located on the Deepwater Tano Block.
Anadarko holds an 18-percent working interest in the Deepwater Tano Block. Tullow Oil is the operator with a 49.95-percent working interest, and the other co-owners in the discovery are Kosmos Energy (18-percent working interest), Sabre Oil & Gas (4.05-percent working interest) and the Ghana National Petroleum Corporation (10-percent carried interest).
A map of the Owo discovery area in the Deepwater Tano Block and the partnership's successful drilling activity offshore Ghana will be available under the "Media Center/Anadarko News" tab at www.anadarko.com.
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2009, the company had approximately 2.3 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko, please visit www.anadarko.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko's ability to successfully drill, complete, test and produce the wells and prospects identified in this news release. See "Risk Factors" in the company's 2009 Annual Report on Form 10-K, Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 and other public filings and press releases. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.
"Building on the success of Jubilee and Tweneboa, Owo marks the partnership's third substantial discovery offshore Ghana and continues to enhance the gross resource potential of this prolific area and validate the quality of our geologic models," said Bob Daniels, Anadarko Sr. Vice President, Worldwide Exploration. "We plan to continue an active drilling program offshore Ghana through the end of this year and into 2011 with multiple appraisal wells planned for both the Tweneboa field and now the adjacent Owo discovery. In addition, we expect to resume the westward expansion of our exploration activity in the Cretaceous Fan play, where we've identified more than 30 prospects and leads with size and geologic characteristics similar to the Jubilee field across our 8-million-gross-acre position offshore Ghana, Cote d'Ivoire, Liberia and Sierra Leone."
The Owo-1 well has been drilled to a total depth of approximately 12,765 feet in about 4,685 feet of water. The partnership plans to sidetrack the well to further define the sand continuity as well as test a deeper and laterally offset part of the Owo channel system. Cores are also planned in the well to provide additional reservoir data needed for a potential development plan. After the sidetrack is complete, the rig will be mobilized to drill the Onyina prospect that also is located on the Deepwater Tano Block.
Anadarko holds an 18-percent working interest in the Deepwater Tano Block. Tullow Oil is the operator with a 49.95-percent working interest, and the other co-owners in the discovery are Kosmos Energy (18-percent working interest), Sabre Oil & Gas (4.05-percent working interest) and the Ghana National Petroleum Corporation (10-percent carried interest).
A map of the Owo discovery area in the Deepwater Tano Block and the partnership's successful drilling activity offshore Ghana will be available under the "Media Center/Anadarko News" tab at www.anadarko.com.
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2009, the company had approximately 2.3 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko, please visit www.anadarko.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko's ability to successfully drill, complete, test and produce the wells and prospects identified in this news release. See "Risk Factors" in the company's 2009 Annual Report on Form 10-K, Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 and other public filings and press releases. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.
Why ExxonMobil Left Ghana
On Wednesday August 18, 2010 Kosmos Energy announced that its sale and Purchase Agreement (SPA) with ExxonMobil has been terminated. No reasons were given although Kosmos has since reaffirmed its intention to stay in Ghana for the foreseeable future and participate in the development and production of the commercial quantity oil that it discovered in 2007. Ghanaians greeted this announcement with mixed reaction. While those still feeling the effects of nationalist sentiments, whipped up by some leading to the termination of the SPA, were elated that Ghana had stood up to “imperialist bullies,” many in the industry knew that Ghana missed an incredible opportunity. Given how potentially destructive this aborted SPA can become to Ghana’s investment outlook in the international community, it is imperative that Ghanaians know precisely what let to the aborted SPA.
Sources close to the inner workings of the team assigned by ExxonMobil to the Ghana project intimate that of the litany of factors that frustrated the global oil and gas giant, three things stand out.
The first surprise was that, in spite of the acclaim making the rounds within the global investment community about being investor-friendly, Ghana had become very adversarial in her relations with foreign investors over the past several months to the point of actually harassing many of these companies. ExxonMobil, therefore, could not ascertain that this environment was temporary, and was likely to change. This uncertainty made investing almost $5 billion imprudent, especially when it was contemplating making Ghana a regional operation center for Africa.
The second issue was the circumstances surrounding the World Bank/ IFC investigation of Stratoil and its relations with Modec. You would recall that a few weeks ago, it was revealed in the Ghanaian media that Modec, the contractor for the FPSO Super tanker for the Jubilee Field, made three payments over a span of about 16 months totaling $2 million to Stratoil, a British Virgin Island registered company half owned by Tsatsu Tsikata, the advisor to President Mills on energy matters.
The potential violation of Foreign Corrupt Practice Act (FCPA) that these payments represented also prompted a suspension by Multinational Insurance Guarantee Agency (MIGA) of financing on the insurance covering the FPSO. Uncertain as to the eventual findings of the investigation, which has potentially negative ramifications on the continued financing of the FPSO, ExxonMobil felt uncomfortable coming in.
The third major issue was about demands by Ghana government such as the Domestic Supply Requirement (DSR) that ExxonMobil considered to be unreasonable. At the peak of the oil production, up to 120,000 barrels per day (bpd) would be coming out of the Jubilee Field. Out of that total, Ghana was demanding that 45,000 barrels be made available to Tema Oil Refinery (TOR), and another 27,000 barrels be made available to Aboadzie Thermal Plant in addition to the 18,000 barrels or so that Ghana will be receiving for her share of the total interests. That leaves 30,000 barrels available for the remaining partners to sell in the international market. Although the 72,000 bpd request that Ghana is requiring for domestic use would be paid for, the payments would be on credit terms. ExxonMobil does sell oil and gas on credit terms, but it is a private arrangement that is never forced upon the global oil and gas producer.
Then there is the government indecision that one ExxonMobil official said the company has not encountered before. ExxonMobil informed the President of its intentions to buy Kosmos one year ago when Mills attended a United Nations event in New York. Since then about three different committees have been set to study the SPA with one of those committees making a trip to London "to conduct additional due diligence." Each time one committee has submitted its report, another one would be set up. Just as it got close to a decision, the president left on vacation with a promise to think about it while on vacation.
The official who spoke on condition of anonymity further intimated that several other issues played a contributing role. He cited instances where government officials hurled insults at ExxonMobil officials and accused them of breaking the laws of Ghana. He also cited instances of sheer disrespect including one instance by the Energy Minister who literally drove away an ExxonMobil team that arrived in Ghana to visit the FPSO. But he was quick to add that they are familiar to those because of the many different political climates in which ExxonMobil does business. In the final analysis according to the official, “it appeared Ghana did not want us doing business there.”
Experts say that is unfortunate. Many developing countries actively court these large global companies to come in and invest mindful of the employment boost that these investments bring in. Fortunately Ghana did not have to do too much to attract the likes of ExxonMobil because it had created a stable political climate and had nurtured healthy relations with the firms that came in. Lately, however, the new Mills government which assumed office in January 2009 has been continually abrasive and at time hostile to foreign corporations.
What’s more; it appears the privatization campaign that began at the turn of the century, which experts agree was the catalyst for the massive influx of foreign investment has made a U-turn and heading back to an era of nationalization of assets. Or at least that is what the GNPC is saying. Industry experts believe Kosmos’ stake would almost certainly have ended up with the Chinese since Ghana does not have the money to buy and maintain the stake.
Even if GNPC is indeed looking to buy the Kosmos stake for Ghana, it is an interesting direction because even countries such as Venezuela which nationalized her oil in 2007 are opening them up for private bidding again. National oil production in the South American country has continued to decline to the point where it could not be ignored further. Why any developing country would want to pursue that nationalization policy in these hard economic times is puzzling to one industry expert we spoke to. “It’s like someone is running away from fire and yet you want to run into it,” he said.
It is not clear if ExxonMobil will reconsider its decision to abandon the Ghana initiative. What is clear is that with up to 184 billion barrels of oil under its control globally, it would be a surprise if ExxonMobil continues to actively knock on Ghana’s doors for her 1 billion barrels of proven reserves. Companies that have poured money in Ghana may have an interest in staying to protect their investments. But with the current hostile business environment in Ghana resulting in a lowering of Standard and Poor grading, ExxonMobil’s departure may be only the beginning of a pseudo boycott of international companies of the once investment superstar destination of Africa.
Sources close to the inner workings of the team assigned by ExxonMobil to the Ghana project intimate that of the litany of factors that frustrated the global oil and gas giant, three things stand out.
The first surprise was that, in spite of the acclaim making the rounds within the global investment community about being investor-friendly, Ghana had become very adversarial in her relations with foreign investors over the past several months to the point of actually harassing many of these companies. ExxonMobil, therefore, could not ascertain that this environment was temporary, and was likely to change. This uncertainty made investing almost $5 billion imprudent, especially when it was contemplating making Ghana a regional operation center for Africa.
The second issue was the circumstances surrounding the World Bank/ IFC investigation of Stratoil and its relations with Modec. You would recall that a few weeks ago, it was revealed in the Ghanaian media that Modec, the contractor for the FPSO Super tanker for the Jubilee Field, made three payments over a span of about 16 months totaling $2 million to Stratoil, a British Virgin Island registered company half owned by Tsatsu Tsikata, the advisor to President Mills on energy matters.
The potential violation of Foreign Corrupt Practice Act (FCPA) that these payments represented also prompted a suspension by Multinational Insurance Guarantee Agency (MIGA) of financing on the insurance covering the FPSO. Uncertain as to the eventual findings of the investigation, which has potentially negative ramifications on the continued financing of the FPSO, ExxonMobil felt uncomfortable coming in.
The third major issue was about demands by Ghana government such as the Domestic Supply Requirement (DSR) that ExxonMobil considered to be unreasonable. At the peak of the oil production, up to 120,000 barrels per day (bpd) would be coming out of the Jubilee Field. Out of that total, Ghana was demanding that 45,000 barrels be made available to Tema Oil Refinery (TOR), and another 27,000 barrels be made available to Aboadzie Thermal Plant in addition to the 18,000 barrels or so that Ghana will be receiving for her share of the total interests. That leaves 30,000 barrels available for the remaining partners to sell in the international market. Although the 72,000 bpd request that Ghana is requiring for domestic use would be paid for, the payments would be on credit terms. ExxonMobil does sell oil and gas on credit terms, but it is a private arrangement that is never forced upon the global oil and gas producer.
Then there is the government indecision that one ExxonMobil official said the company has not encountered before. ExxonMobil informed the President of its intentions to buy Kosmos one year ago when Mills attended a United Nations event in New York. Since then about three different committees have been set to study the SPA with one of those committees making a trip to London "to conduct additional due diligence." Each time one committee has submitted its report, another one would be set up. Just as it got close to a decision, the president left on vacation with a promise to think about it while on vacation.
The official who spoke on condition of anonymity further intimated that several other issues played a contributing role. He cited instances where government officials hurled insults at ExxonMobil officials and accused them of breaking the laws of Ghana. He also cited instances of sheer disrespect including one instance by the Energy Minister who literally drove away an ExxonMobil team that arrived in Ghana to visit the FPSO. But he was quick to add that they are familiar to those because of the many different political climates in which ExxonMobil does business. In the final analysis according to the official, “it appeared Ghana did not want us doing business there.”
Experts say that is unfortunate. Many developing countries actively court these large global companies to come in and invest mindful of the employment boost that these investments bring in. Fortunately Ghana did not have to do too much to attract the likes of ExxonMobil because it had created a stable political climate and had nurtured healthy relations with the firms that came in. Lately, however, the new Mills government which assumed office in January 2009 has been continually abrasive and at time hostile to foreign corporations.
What’s more; it appears the privatization campaign that began at the turn of the century, which experts agree was the catalyst for the massive influx of foreign investment has made a U-turn and heading back to an era of nationalization of assets. Or at least that is what the GNPC is saying. Industry experts believe Kosmos’ stake would almost certainly have ended up with the Chinese since Ghana does not have the money to buy and maintain the stake.
Even if GNPC is indeed looking to buy the Kosmos stake for Ghana, it is an interesting direction because even countries such as Venezuela which nationalized her oil in 2007 are opening them up for private bidding again. National oil production in the South American country has continued to decline to the point where it could not be ignored further. Why any developing country would want to pursue that nationalization policy in these hard economic times is puzzling to one industry expert we spoke to. “It’s like someone is running away from fire and yet you want to run into it,” he said.
It is not clear if ExxonMobil will reconsider its decision to abandon the Ghana initiative. What is clear is that with up to 184 billion barrels of oil under its control globally, it would be a surprise if ExxonMobil continues to actively knock on Ghana’s doors for her 1 billion barrels of proven reserves. Companies that have poured money in Ghana may have an interest in staying to protect their investments. But with the current hostile business environment in Ghana resulting in a lowering of Standard and Poor grading, ExxonMobil’s departure may be only the beginning of a pseudo boycott of international companies of the once investment superstar destination of Africa.
Ghana has 1.2 trillion cube feet of gas in Jubilee field
Half Assini (W/R) Aug. 21, GNA - Ghana has 1.2 trillion cube feet of gas in the Jubilee field, which could meet the requirement of 15,000 barrels of crude oil needed to operate the Aboadze Thermal Plant.
There are 1.8 billion barrels of crude oil (recoverable reserves) in the Jubilee field, making it single biggest in African and second in the world.
Mr Mohammed Amin Adams, a member of Civil Society Organisation Platform for Oil and Gas and coordinator of Publish What You Pay, a non-governmental organisation, said these at a forum on Oil and Gas on the theme: "community sensitization in forum with stakeholders on Oil and Gas", at Half Assini in the Western Region.
It was jointly organised by the Christian Council of Ghana (CCG) and the Pentecostal Churches of Ghana (PCG) for religious leaders, chiefs and members of identifiable groups in and around Half Assini.
Mr Adams, who was speaking on the topic: "oil and Gas find, analyses and emerging issues" said "if corrupt people manage the oil and Gas industry, it would be a curse for Ghana".
He said the right economic security for communities that would be directly affected by the oil exploration, must be addressed to ensure sustainable development and prevent oil nationalization, which may give rise to unintended consequence.
Mr Adams said Ghana would earn 52 percent of its national revenue from oil and gas in the Jubilee field by 20 year's time.
He said the Jubilee field would be profitable to Ghana since the total investment including the cost of the Float Production storage and Offloading was 4 billion US dollars.
According to Mr Adams, by 2020, 90 percent of workers in the Oil industry would be Ghanaians and the oil companies would contribute towards their training.
Reverend Dr Nii Odonkor of the CCG, who was facilitator of the forum, said that the Council and the PCG can no long be silent over exploitation of Ghana's national resources.
He said the platform had been created for Ghana to improve upon issues affecting the oil industry in other countries.
Dr Shiloh Osae, of the Environmental Protection Agency (EPA), speaking on the topic: "Environmental Impact on Oil and Gas Production", said that soon Ghana's energy consumption would be shifted from fuel wood to gas.
He appealed to people living around the Jubilee field to inform the EPA about any strange environmental development along the cost.
Osahene Katakyi Busumakura III, Omanhene of Takoradi Traditional Area, said that suggestions and ideas of the participants should be considered for the oil and gas bill.
Apostle Samuel Yaw Antwi, chairman of Ghana Pentecostal Churches, advised Ghanaians not to sell their land indiscriminately to foreigners coming to the country as a result of the oil find.
There are 1.8 billion barrels of crude oil (recoverable reserves) in the Jubilee field, making it single biggest in African and second in the world.
Mr Mohammed Amin Adams, a member of Civil Society Organisation Platform for Oil and Gas and coordinator of Publish What You Pay, a non-governmental organisation, said these at a forum on Oil and Gas on the theme: "community sensitization in forum with stakeholders on Oil and Gas", at Half Assini in the Western Region.
It was jointly organised by the Christian Council of Ghana (CCG) and the Pentecostal Churches of Ghana (PCG) for religious leaders, chiefs and members of identifiable groups in and around Half Assini.
Mr Adams, who was speaking on the topic: "oil and Gas find, analyses and emerging issues" said "if corrupt people manage the oil and Gas industry, it would be a curse for Ghana".
He said the right economic security for communities that would be directly affected by the oil exploration, must be addressed to ensure sustainable development and prevent oil nationalization, which may give rise to unintended consequence.
Mr Adams said Ghana would earn 52 percent of its national revenue from oil and gas in the Jubilee field by 20 year's time.
He said the Jubilee field would be profitable to Ghana since the total investment including the cost of the Float Production storage and Offloading was 4 billion US dollars.
According to Mr Adams, by 2020, 90 percent of workers in the Oil industry would be Ghanaians and the oil companies would contribute towards their training.
Reverend Dr Nii Odonkor of the CCG, who was facilitator of the forum, said that the Council and the PCG can no long be silent over exploitation of Ghana's national resources.
He said the platform had been created for Ghana to improve upon issues affecting the oil industry in other countries.
Dr Shiloh Osae, of the Environmental Protection Agency (EPA), speaking on the topic: "Environmental Impact on Oil and Gas Production", said that soon Ghana's energy consumption would be shifted from fuel wood to gas.
He appealed to people living around the Jubilee field to inform the EPA about any strange environmental development along the cost.
Osahene Katakyi Busumakura III, Omanhene of Takoradi Traditional Area, said that suggestions and ideas of the participants should be considered for the oil and gas bill.
Apostle Samuel Yaw Antwi, chairman of Ghana Pentecostal Churches, advised Ghanaians not to sell their land indiscriminately to foreigners coming to the country as a result of the oil find.
Ghana has 1.2 trillion cube feet of gas in Jubilee field Half Assini (W/R) Aug. 21, GNA - Ghana has 1.2 trillion cube feet of gas in the Jubilee field, which could meet the requirement of 15,000 barrels of crude oil needed to operate the Aboadze Thermal Plant. There are 1.8 billion barrels of crude oil (recoverable reserves) in the Jubilee field, making it single biggest in African and second in the world. Mr Mohammed Amin Adams, a member of Civil Society Organisation Platform for Oil and Gas and coordinator of Publish What You Pay, a non-governmental organisation, said these at a forum on Oil and Gas on the theme: "community sensitization in forum with stakeholders on Oil and Gas", at Half Assini in the Western Region. It was jointly organised by the Christian Council of Ghana (CCG) and the Pentecostal Churches of Ghana (PCG) for religious leaders, chiefs and members of identifiable groups in and around Half Assini. Mr Adams, who was speaking on the topic: "oil and Gas find, analyses and emerging issues" said "if corrupt people manage the oil and Gas industry, it would be a curse for Ghana". He said the right economic security for communities that would be directly affected by the oil exploration, must be addressed to ensure sustainable development and prevent oil nationalization, which may give rise to unintended consequence. Mr Adams said Ghana would earn 52 percent of its national revenue from oil and gas in the Jubilee field by 20 year's time. He said the Jubilee field would be profitable to Ghana since the total investment including the cost of the Float Production storage and Offloading was 4 billion US dollars. According to Mr Adams, by 2020, 90 percent of workers in the Oil industry would be Ghanaians and the oil companies would contribute towards their training. Reverend Dr Nii Odonkor of the CCG, who was facilitator of the forum, said that the Council and the PCG can no long be silent over exploitation of Ghana's national resources. He said the platform had been created for Ghana to improve upon issues affecting the oil industry in other countries. Dr Shiloh Osae, of the Environmental Protection Agency (EPA), speaking on the topic: "Environmental Impact on Oil and Gas Production", said that soon Ghana's energy consumption would be shifted from fuel wood to gas. He appealed to people living around the Jubilee field to inform the EPA about any strange environmental development along the cost. Osahene Katakyi Busumakura III, Omanhene of Takoradi Traditional Area, said that suggestions and ideas of the participants should be considered for the oil and gas bill. Apostle Samuel Yaw Antwi, chairman of Ghana Pentecostal Churches, advised Ghanaians not to sell their land indiscriminately to foreigners coming to the country as a result of the oil find. Related Articles: * Why ExxonMobil Left Ghana * Anadarko Announces Discovery Offshore Ghana * Major new oil field Discovered in Ghana * Mills' Advisors Divided Over Kosmos/ExxonMobil Deal * Read all related articles Comments: This article has 68 comments, give your commentGeneral News of Monday, 26 July 2010 Source: -- Major new oil field Discovered in GhanaMajor new oil field Discovered in Ghana
Tullow Oil said it has found a significant column of excellent quality light oil when drilling the Owo-1 exploration well in the Deepwater Tano licence offshore Ghana.
Results of drilling, wireline logs and samples of reservoir fluids have established Owo as a major new oil field requiring further appraisal, it added.
The deviated well, located approximately 6km to the west of the Tweneboa wells, has encountered a gross vertical reservoir interval of 154 metres containing 53 metres of net oil pay in two zones of high quality stacked reservoir sandstones.
Pressure data indicates that these zones are part of the same accumulation and samples show that it is a light oil of between 33 and 36 degrees API.
Exploration director Angus McCoss said: "Owo-1 has made a very substantial light oil discovery and continues the success of Tullow's Equatorial Atlantic exploration campaign in West Africa.”
“Given this success, we are immediately drilling an appraisal sidetrack to further assess the size of this find. Accelerated appraisal drilling will now focus on maturing the resources in both Owo and the adjacent Tweneboa accumulation towards commercialization."
Results of drilling, wireline logs and samples of reservoir fluids have established Owo as a major new oil field requiring further appraisal, it added.
The deviated well, located approximately 6km to the west of the Tweneboa wells, has encountered a gross vertical reservoir interval of 154 metres containing 53 metres of net oil pay in two zones of high quality stacked reservoir sandstones.
Pressure data indicates that these zones are part of the same accumulation and samples show that it is a light oil of between 33 and 36 degrees API.
Exploration director Angus McCoss said: "Owo-1 has made a very substantial light oil discovery and continues the success of Tullow's Equatorial Atlantic exploration campaign in West Africa.”
“Given this success, we are immediately drilling an appraisal sidetrack to further assess the size of this find. Accelerated appraisal drilling will now focus on maturing the resources in both Owo and the adjacent Tweneboa accumulation towards commercialization."
Sunday, August 29, 2010
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Ghana is set to join the few African nations that are into the production and consumption of Genetically Modified Foods.
At a public lecture held at the lecture theatre of the KNUST Agriculture faculty last Monday, Dr. Richard Akromah of the Crop and soil Science department stated that sufficient education on the issue of biotechnology and genetically modified foods had been provided for the country’s legislators to enable them accept the concept of biotechnology and its use in the country.
He says that it has become necessary for Ghana to adopt the production and consumption of GM foods because the country’s population is increasing at an alarming rate that needs to be fed with the existing resources. He says biotechnology helps breeders develop varieties that overcome important production problems that bedevil farmers.
Currently, Burkina Faso, Egypt and South Africa are the only African countries that produce and consume GM foods.
Dr. Garry Blumenthal, a US Biotechnology expert attributed opposition to GM foods in many countries mainly to the fear of the unknown and lack of knowledge of the science involved. He also considers it more of a moral issue, saying that people are opposed to biotechnology because they think people should not mess with nature and not because of any scientific evidence of dangers of the technology.
-BERNARD BUACHI FOCUS FM, KNUST.
At a public lecture held at the lecture theatre of the KNUST Agriculture faculty last Monday, Dr. Richard Akromah of the Crop and soil Science department stated that sufficient education on the issue of biotechnology and genetically modified foods had been provided for the country’s legislators to enable them accept the concept of biotechnology and its use in the country.
He says that it has become necessary for Ghana to adopt the production and consumption of GM foods because the country’s population is increasing at an alarming rate that needs to be fed with the existing resources. He says biotechnology helps breeders develop varieties that overcome important production problems that bedevil farmers.
Currently, Burkina Faso, Egypt and South Africa are the only African countries that produce and consume GM foods.
Dr. Garry Blumenthal, a US Biotechnology expert attributed opposition to GM foods in many countries mainly to the fear of the unknown and lack of knowledge of the science involved. He also considers it more of a moral issue, saying that people are opposed to biotechnology because they think people should not mess with nature and not because of any scientific evidence of dangers of the technology.
-BERNARD BUACHI FOCUS FM, KNUST.
Ghana's Oil and Gas Sector - World Bank Support
The development of Ghana’s Jubilee oilfield has the potential to bring
substantial benefits, including reliable and affordable power generation, government
revenues estimated at more than $1 billion during peak production, foreign exchange
income, jobs, and stimulated demand for local goods and services to Ghana. The
engagement of the World Bank Group in the Jubilee oilfield supports the
government’s priority to develop its natural resources in the long-term
interests of the country. The World Bank Group is committed to following the highest
standards of governance and environmental and social practice to help maximize the
development impact in all projects we support.
· The World Bank is making available to Ghana its global knowledge and expertise in
the oil and gas sector to help the Government manage the new resources.
· IFC brings long-term capital along with private sector industry knowhow and a
commitment to best global best practices in private sector finance.
· MIGA offers a range of benefits to investors seeking protection and continuity for
their projects by providing political risk guarantees and dispute resolution
services for guaranteed investments.
World Bank (IDA/IBRD) Support
· In response to a request from the government, a capacity-building project with
concessional IDA funding of about $30 million is under preparation. It would assist
public bodies in charge of overseeing the oil and gas sector and provide support to
vocational training institutions.
· IBRD is in preliminary discussions to provide a loan on commercial terms to Ghana
to enable GNPC acquire an equity stake in a joint-venture for the development of the
associated gas from the Jubilee Field.
For any questions related to the World Bank’s support for Ghana’s oil
and gas sector, please contact us.
World Bank, Accra
substantial benefits, including reliable and affordable power generation, government
revenues estimated at more than $1 billion during peak production, foreign exchange
income, jobs, and stimulated demand for local goods and services to Ghana. The
engagement of the World Bank Group in the Jubilee oilfield supports the
government’s priority to develop its natural resources in the long-term
interests of the country. The World Bank Group is committed to following the highest
standards of governance and environmental and social practice to help maximize the
development impact in all projects we support.
· The World Bank is making available to Ghana its global knowledge and expertise in
the oil and gas sector to help the Government manage the new resources.
· IFC brings long-term capital along with private sector industry knowhow and a
commitment to best global best practices in private sector finance.
· MIGA offers a range of benefits to investors seeking protection and continuity for
their projects by providing political risk guarantees and dispute resolution
services for guaranteed investments.
World Bank (IDA/IBRD) Support
· In response to a request from the government, a capacity-building project with
concessional IDA funding of about $30 million is under preparation. It would assist
public bodies in charge of overseeing the oil and gas sector and provide support to
vocational training institutions.
· IBRD is in preliminary discussions to provide a loan on commercial terms to Ghana
to enable GNPC acquire an equity stake in a joint-venture for the development of the
associated gas from the Jubilee Field.
For any questions related to the World Bank’s support for Ghana’s oil
and gas sector, please contact us.
World Bank, Accra
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