Sunday, 17 February 2019

Total oil revenue to hit US$10.2bn by 2023… as production expected to more than double

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Adnan Adams Mohammed

Total revenue from upstream oil production in Ghana is expected to increase more than double as crude oil production from all oilfields is expected to more than double in four years’ time. 

Crude oil production is expected to increase from 196,089 barrels per day in 2019 to 420,020 barrels per day in 2023,” Finance Minister, Ken Ofori-Atta told investors in Oslo, Norway.

With the expected 420,020 barrels per day by 2023, Ghana could be recording over US$10.2 billion from the crude oil production in the year 2023, if pegged at current benchmark price of the Brent crude oil of US$66.76 per barrel, as captured in the 2019 budget.  

“Ghana’s production of crude oil is expected to reach half a million barrels by 2025”, Deputy Minister of Energy, Mohammed Amin Adams has said.

Aker Energy ASA, last month, announced the biggest oil find in Africa, of 450-550 million barrels, with potential recoverable reserves of nearly one billion barrels. With production expected to begin in likely 2020 to 2021.  

Based on existing subsurface data from seismic and wells drilled, including an analysis of the Pecan-4A well result, the existing discoveries are estimated to contain gross contingent resources (2C) of 450 – 550 million barrels of oil equivalent (mmboe). Aker Energy estimates that with the next two well targets, the total volume potential is 600 – 1,000 mmboe.

In order to fully develop the DWT/CT, the partners will be required to make a significant capital investment in Ghana with estimates of total project spend in excess of US$10billion.

Addressing 20 key international companies, Finance Minister, Ken Ofori-Atta has said Ghana has re-asserted herself strongly as a key destination for petrochemical industry players.

He said, “going forward, the vision of the government is to create an optimistic, self-confident and building a prosperous nation, through the creative exploitation of our human and natural resources, and operating within a democratic, open and fair society in which mutual trust and economic opportunities exist for all.”

Aker Energy ASA has confirmed a significant offshore resource base in Ghana and has committed to scale up new development in the Deepwater Tano Cape three points block (DWT/CT).

Kjell Inge Rokke, the majority owner of Aker -- a shipping and offshore drilling conglomerate -- announced his commitment to contribute significantly to the President’s vision to make Ghana a major ship-building and repair works hub in the world.

Between 2012 and 2016, Hess – an Oil & Gas company -- sought, unsuccessfully, to appraise the Pecan field (now with Aker as operator) and agreed terms with the government of Ghana on a feasible plan of development for the discovery. Hess’s initial assessment indicated resources of 230 million barrels of oil equivalent.

In 2017, following discussions with the Ghana National Petroleum Corporation, Aker announced its acquisition of Hess’s interest in the DWT/CT License.

Aker and its partner, working closely in conjunction with the Petroleum Commission and GNPC, immediately undertook preparations for an expansive drilling programme, with Pecan 4A being the first of three planned wells.

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