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%.
Monday, September 6, 2010
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  |
In picturesMr 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.
|  We're going to really zoom, accelerate... and you'll see that Ghana truly is the African tiger  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.
| With oil as a shot in the arm, we're going to fly 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.
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