President Nana Addo Dankwa Akufo-Addo last Friday inaugurated the First Oil from the Jubilee South East (JSE) Project, undertaken by Tullow, in collaboration with the Ghana National Petroleum Corporation (GNPC), Kosmos Energy, Jubilee Oil Holdings and Petro SA.
The success of the project, according to President Akufo-Addo, aligns with the broader Jubilee field plan, aimed at bolstering gross production from the field’s eastern side.
With a collective investment of US$1 billion, Ghana’s target of maintaining production above 100,000 barrels of oil per day from the field, by the end of 2024, is well within reach.
With some 300 million barrels of oil estimated within the Jubilee field, this success augments the country’s confidence in other prospects across the nation.
Addressing the gathering at the commissioning ceremony, the President emphasised that the success of the JSE Project reinforces the government’s determination to encourage further investments from partners in the TEN field project.
The expansion, he said, would consolidate the government’s achievements in the oil and gas sector, adding: “The TEN field, enriched with substantial gas reserves, is pivotal to our nation’s natural gas production and the stability of our power sector in the coming years.”
President Akufo-Addo said he was well informed of the commentary, both in the media and other corridors, about the viability of making great use of Ghana’s natural gas produced domestically to support the needs of the country’s power sector.
“Players in the oil and gas sector have been advocating for a commitment by the government to consider deploying more natural gas produced domestically to solve the challenges in providing sustainable electricity for individuals, households and businesses,” he said.
President Akufo-Addo said the government was committed to expediting discussions and agreeing on mutually acceptable terms for a combined gas sales agreement between Tullow and its Joint Venture Partners.
That step, he explained, would pave the way for heightened success and revenue generation in the sector, fostering the use of natural gas for domestic purposes and creating allied industries.
“Such utilisation is especially critical in meeting approximately half of our power generation requirements,” the President added.
President Akufo-Addo said the government’s position on local content and Ghanaian participation in upstream petroleum operations is not just about supplying ancillary services to the sector but also having a stake in the resources as well.
He said Ghanaians needed to be trained to a level where they would have the capacity to be able to participate fully in the industry.
The government’s position, he maintained, was to strengthen all training vehicles in the various industries of the energy sector, such as the Accelerated Oil and Gas Capacity Building Programme, to ensure that Ghanaians have the relevant certification to become competitive and play a fuller role in the industry.
“That fuller role will be most effectively anchored when we ensure Ghanaian equity participation in the upstream development of our oil and gas resources,” the President emphasised.
Ghana being a signatory to the Paris Agreement and other international conventions, that require countries to reduce their carbon dioxide emission levels, President Akufo-Addo said it had become imperative for Ghana to develop plans and strategies toward the creation of a net-zero energy sector.
He said while working to combat the effects of climate change, it was also important that the country’s development was protected by making sure the oil reserves did not become stranded assets, “but, rather, a catalyst for our economic growth. Our position remains unchanged.”
Ghana, the President maintained, has everything going on well as an investment destination– a stable political system, a robust legal framework, a viable fiscal regime, a good telecommunications system, a hardworking, skilled labour force, and warm, hospitable people.
“I wish to assure the investor community of our continued support to ensure that their investments are safe in law and in fact, that they can flourish in our country within the context of our relevant laws.
Our doors are always open for conversations on your presence in Ghana, and I hope the good, warm relations we have fostered over the years will continue to endure in the times ahead,” he added.
Rex Mainoo Yeboah, ISD
