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Aspiring Member of Parliament for Dormaa East, Paul Apraku Twum Barimah has indicated that a report predicting a surge in Ghana’s oil production in 2021 has bolstered investor confidence in the industry.
He sees the report as a good omen for Ghana, as it would surely help increase government revenue in the sector.
Ghana’s oil production is expected to increase by 2% next year, according to a research report published by Fitch Solutions, the research arm of rating agency Fitch.
According to Paul Twum Barimah, who is also an energy expert, the long-term outlook for Ghana’s crude oil production is positive, based on the expectation of continued development of the field.
He said that in January 2020, Ghana gained 1.3% in crude oil export earnings as crude traded at an average of $ 63.7 per barrel on the international market. Oil revenues have contributed greatly to dampening Ghana’s economy even in the heat of the COVID 19 pandemic. “Ghana’s potential in the oil industry is positive and we should all expect a positive outlook in the coming months and increases in production, “he said.
Among the assets with the highest profit in Ghana is the Pecan field in the Gulf of Guinea, with a total production capacity of 110,000 barrels per day. The Pecan field, operated by Aker Energy, is the largest of several discoveries made.
Paul Twum Barimah said that the ENI-operated Sankofa field has been key in providing power to Ghana since 2019 with the ability to produce 1,000 megawatts through power plants providing electricity to around 1.6 million households and many businesses that they need a reliable power source.
“Since Sankofa became operational, Ghana’s annual oil import has dropped by 12 million barrels. The field currently produces more than 171 million standard cubic feet per day and operators are paying royalties of 5 percent to the government in kind. GNPC gets 20 percent of the rest based on its participation in the project.
“The longer-term outlook for Ghana’s crude oil production is positive, based on the expectation of continued field development in the offshore blocks. Among the assets with the greatest growth potential is the Pecan field located in the Gulf of Guinea, with a total production capacity of 110,000b / d, ”he said.
The Pecan field is estimated to contain around 334 million barrels of oil equivalent and is expected to require an investment of around $ 4.4 billion. Aker Energy operates the block with a 50% stake in association with Russia’s Lukoil (38%), state-owned Ghana National Petroleum Corporation (10%) and Fueltrade (2%).
He said the strong performance at Jubilee and TEN is a positive development for Ghana’s oil sector as they are the two most productive fields in Ghana.
Recent figures from Tullow Oil show that gross production in the Jubilee and TEN fields averaged 136,700 barrels of oil per day between January and August.
“This is better than anticipated for this year. Last year, the country registered 4.4 billion dollars for crude exports ”.
