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Discoveries and opportunities.


In June and September 2007, a consortium of companies comprising Kosmos Energy Ghana, Tullow Ghana Ltd, Anardarko Petroleum Corporation, Sabre Oil and Gas Limited, and E.O. Group in conjunction with the Ghana National Petroleum Corporation (GNPC) announced discoveries of significant quantities of oil and gas in the offshore deepwater Tano/ Cape Three Points basins located in the southernmost part of Ghana.

Under these circumstances, the Petroleum Law required that the discovered oil and gas resources in the two blocks be produced as one unit to reduce costs, optimise the recovery of oil and gas in the field. The two discovered fields were therefore unitised and designated as the Jubilee Field, in commemoration of Ghana's Jubilee Year celebration.

In 2010, then-president John Atta Mills ceremonially turned on the taps, signalling the commencement of commercial oil production in the country.

Ghana's oil gas and industry is growing at a steady pace, with a total proven reserve base as at August 20X4 of approximately 883.4m barrels of oil and 2,312.4bn cu ft of gas.

There are four major oil and gas fields in the country namely: the producing Jubilee Field, the sub-commercial producing Saltpond Field, and the Tweneboa-Enyenra-Ntomme (TEN) and Sankofa-Gye Nyame fields, currently in the development phase. In addition to this, 23 post-jubilee discoveries have been made in offshore Ghana on six different blocks in the Tano/Cape three points basin.

Crude oil production

The total amount of oil produced by the Jubilee Field from January to December 2014 was 37,201,691 barrels, representing an average daily production rate of 111,382bpd.

Total crude oil lifting for the corresponding period in 2013 was 35,587,558 barrels with an average daily production rate of 100,246.64bpd. The Ghana Group lifted 7,681,120 barrels in 2014 with a gross value of over $700m.

Gas infrastructure production

The Offshore Pipeline, the Onshore Pipeline, the Gas Processing Plant, the NGLs Export System, and the Office Complex are collectively known as the "Project" and sometimes referred to as the Western Corridor Gas Infrastructure Development Project or the Ghana Early Phase Gas Infrastructure Development Project.

The gas processing plant at Atuabo is expected to help to process Ghana's gas from the Jubilee field, which will make gas constantly available to Ghana's Thermal plants. This will also lead to the construction of more thermal plants, helping to reduce the cost of electricity. It will also promote the petrochemical industry by providing the much needed raw materials for the petrochemical industry.

Ghana Gas was incorporated in July 2011 with the responsibility to build, own and operate infrastructure required for the gathering, processing, transporting and marketing of natural gas resources. It is currently making available to the VRA thermal power plant complex around 32-35 MMSCFD of lean gas, enough to support the generation of about 130-140MW of electricity from the Aboadze complex out of the maximum 550MW possible.

Since the commissioning of the gas processing facility, the plant has been receiving raw gas supplies from the Jubilee Field for processing onward transmission to the Aboadze thermal plant. Gas export from the Jubilee Field to the Ghana National Gas Company commenced on 8th November 2014 and a total of 1,906 MMSCF of gas has been exported, of which 400 MMSCF was used for commissioning activities.

The market

There are currently over 200 registered service providers in this sector. The services offered cover the broad range of oil field services listed below, as well as other general services such as accounting, auditing and legal.

Ghana's petroleum sector involves upstream and downstream activities. The upstream activities include the production, procurement and refining of crude oil. Those downstream include production, distribution and marketing of petroleum products; and the premixing of petroleum products for industrial uses, including fishing. Companies in the upstream include multinationals such as Tullow and Kosmos. There are opportunities for new entrants as new fields are discovered, and acreage is auctioned off for new exploration.

Distribution of petroleum products in Ghana is dominated by the multinational oil marketing companies. Following the deregulation policy of the government, the oil marketing companies have increased in numbers to include several local Ghanaian companies. Products are retailed through fuel stations which are either owned by the Oil Marketing Companies (OMCs) or private individuals. There are 133 oil marketing companies in Ghana. The private sector, including the OMCs and others, source and supply finished products through an open competitive tendering system.

Investment opportunities

Due to the emerging nature of the petroleum industry, opportunities exist in virtually every area, both upstream and downstream.

The upstream petroleum sector:

* Geophysics (site surveys, seismic data acquisition, processing interpretation)

* Basin modelling

* Geological studies

* Biostratigraphy sequence stratigraphy

* Sedimentology

* Geochemistry

* Geochemical studies

* Geographical studies

* Equipment supply/or leasing (boats, barges, aircraft, etc)

* Supply of casings for boreholes

Drilling products and services:

* Land drilling rigs, swamp drilling rigs

* Petroleum engineering consultancy

* Offshore drilling rigs (jack-ups, semi-submersible rigs, submersible rigs etc)

* Offshore rig towing services, rig move/ positioning services

* Drilling mud, chemicals, mud logging and mud logging services

* Drilling site preparation, well control, blow-out prevention

* Underwater inspection, sand control, fish and fishing tools

* Dry-dock facilities for offshore supply vessels, tugboats, offshore rigs

* Measurement while drilling (MWD) and logging while drilling (LWD) services

* Casing & high pressure pumping, tubing services, tools, cased-hole electrical logging

* Directional drilling and survey

* Surface and bottom hole sampling and tubing conveyed perforation (TCP)

* Fluid filtration, solid control, laboratory & pilling services, and PVT analysis

* Mechanical wireline services and petrophysical reservoir data services

* Coil tubing & electrical line and production logging

* Oil field waste management, jetty and shore support services and rigless work-over services

* Well production testing, wellhead maintenance and well completion services

* Supply of drilling materials and equipment (drill bits, drill pipes, drill collars, cone bits etc)

Production support services:

* Wireline services and pipeline inspection

* Production chemical management

* Engineering design, procurement of production facilities

* Corrosion engineering services

* Blow out central services and flow line construction

* Oil expand terminal design and crude oil lifting

* Fire fighting systems design and installation of 2/3 phase meter supplies

* Supply and maintenance of safety equipment

* Gas valve supplies and installation

Reservoir engineering:

* Consultancy services

* Simulation

* Economic analysis

* Complete field study

Downstream sector business opportunities in marketing, storage, distribution, transport and refining:

* Technical partnership

* Field development contractor financing

* Gas utilisation

* Refineries maintenance

* Pipeline construction maintenance

* Petroleum products haulage

* Petroleum products marketing

* Petrochemicals

* Gas development/conversion

* Butanisation project

* Fertiliser plants

* Vehicle fuels

* Methanol /MTBE plants
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Title Annotation:OIL & GAS
Publication:African Business
Geographic Code:6GHAN
Date:May 1, 2016
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