Petroleum and Gas Sector
In June and September 2007, a consortium of companies comprising Kosmos Energy Ghana (Kosmos), Tullow Ghana Limited (Tullow), Anardarko Petroleum Corporation, Sabre Oil and Gas Limited, E.O. Group in conjunction with the 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.
The discoveries which were made in two deepwater blocks of West Cape Three Points and Deepwater Tano blocks are under two separate Petroleum agreements. The discovered oil and gas resources in the two blocks were found to be in pressure communication, and thus in the same reservoir. Under this circumstance, the Petroleum Law required that the discovered oil and gas resources in the two blocks be produced as one unit to reduce cost and optimize the recovery of oil and gas in the field. The two discovered fields were therefore unitized and designated as the Jubilee Field, in commemoration of Ghana’s Jubilee Year celebration.
First oil from Jubilee field phase 1 development Production from phase 1 development of the Jubilee field commenced on 28th November 2010 and was inaugurated on the 15th of December 2010. This milestone was achieved around 40 months after discovery of the field. Gross production of over 69,000 barrels of oil per day (bopd) has been achieved from five wells and full production capacity of 120,000 bopd is expected to be reached within the next five months as the remaining four wells are being completed and brought on line. Once plateau production is reached an average of three off takes are expected each month. Water injection to two wells is currently around 110,000 barrels of water per day (bwpd) and a further four injection wells will be completed during 2011 to maintain plateau oil production levels.
Gas injection will commence in March to a single well, the second injection well is expected to be completed in the third quarter of 2011.
Further phases of Jubilee development
Planning work for phase 1a of the Jubilee development, to comprise between five and eight further wells, commenced in the fourth quarter of 2010. This development will help maintain field development at plateau levels and develop further reserves. Subsurface planning work is well advanced and has already identified the additional well locations. The operator of the West Cape Three Points (WCTP) licence submitted a declaration of Commerciality for the Mahogany East (previously known as ‘Southeast Jubilee’) area in 2010. The development of the Mahogany East reservoirs, which are extensive but generally thinner than the main Jubilee reservoirs, is currently planned to consist of a four to six well tie-back to the existing Jubilee subsea infrastructure when capacity is available. However, an accelerated development as part of an integrated project with other WCTP discoveries may be considered depending upon exploration and production success in the WCTP licence, Enyenra Field development (Formerly Owo and Tweneboa).
In February 2010, the first appraisal well in the Tweneboa Field, Tweneboa-2 in the Deepwater licence offshore Ghana intersected a significant hydrocarbon column. Combined with the Tweneboa-1 discovery in 2009, Tweneboa was established as a major gas-condensate and oil field. In July 2010, the Owo-1 and Owo-1 sidetrack wells intersected a total of 69 metres of net oil pay in a substantial gross oil column of 200 metres and established Enyenra ( formerly Owo) as a major new oil field in its own right.
The wells also intersected 13 metres of net condensate pay and 6 metres of net gas pay below the Enyenra oil field.Development studies for both fields are focused on recovery of the light oil discovered at Enyenra and maximising both liquid and gas recovery from the Tweneboa field. Conceptual developments include the use of a large FPSO with liquid rates in the range of 75,000 to 125,000 barrels of oil per day. Water and gas is expected to be injected into the reservoirs to optimise both oil and condensate recovery levels. Gas export infrastructure to shore will also be in place to satisfy the growing demand in Ghana. A plan of development will be prepared for submission in the first quarter of 2012.
Currently the following blocks are being prospected for oil and gas by various international companies:
• Keta Basin
• Deepwater Cape three points
• West Cape Three Points
• Saltpond Field
• Cape Three points
• Shallow Water Tano and Tano Fields
• Deepwater Tano Area
• Deepwater Tano/Cape-Three Points
• Offshore Saltpond Basin
• South Cape-Three Points
• Offshore Saltpond Basin
• South Deepwater Tano
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 and other general services such as accounting, auditing and legal.
PETROLEUM REGULATIONS IN GHANA :
The relevant laws governing oil and gas operations in Ghana are PNDC Law 84 of 1984, the GNPC Law- PNDC Law 64 of 1983, and the Petroleum Income Tax Law- PNDC Law 188 of 1988.
INVESTMENT OPPORTUNITIES :
Due to the emerging nature of the industry, opportunities exist in virtually every area of the petroleum industry, both upstream and downstream.
Upstream Petroleum Sector:
• Geophysical (Site surveys, seismic data acquisition, processing and interpretation)
• Basin modelling
• Geological Studies
• Biostratigraphy Sequence Stratigraphy
• Geochemical Studies
• Geographical Studies
• Equipment supply and/ or leasing (boats, barges, aircrafts, etc)
• Supply of casings for boreholes
Drilling Products and Services:
• Land Drilling Rigs, Swamp Drilling Rigs, Petroleum Engineering & Consultancy Services
• Offshore Drilling Rigs (jack-ups, semisubmersible rigs, submersible rigs etc)
• Offshore Rig Towing Services, Rig Move/Positioning Services
• Drilling Mud , Chemicals, Mud Logging & Mud Logging Services
• Drilling Site Preparation, Well Control & Blow-out Prevention
• Under-water Inspection, Sand Control, Fish & Fishing Tools
• Dry-dock facilities for offshore supply vessels, tugboats, & offshore rigs
• Measurement While Drilling (MWD) & Logging While Drilling (LWD) Services
• Casing & High Pressure Pumping ,Tubing Services ,Tools & Cased-Hole Electrical Logging
• Directional Drilling & Survey as well as Drilling & Workover
• Surface & Bottom Hole Sampling &Tubing Conveyed Perforation ( TCP)
• Fluid Filtration, Solid Control and Laboratory & Pilling Services as well as 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 Workover Services
• Well Production Testing, Wellhead Maintenance & Well Completion Services
• Supply of drilling materials and equipment (drill bits, drill pipes, drill collars, cone bits etc).
Production Support Services:
• Wireline Services & Pipeline Laying/ Inspection
• Production Chemical Supplies & Management
• Engineering Design, Procurement /Construction of production facilities
• Corrosion Engineering & Environmental Engineering Services
• Blow Out Central Services & Flow Line Construction
• Oil Expand Terminal Design and Construction & Crude Oil Lifting
• Fire Fighting system Design and installation & 2/3 Phase Meter Supplies
• Supply & Maintenance of Safety Equipment
• Gas Valve Supplies & Installation.
• Consultancy Services
• Economic Analysis
• Complete Field Study
Down Stream Sector Business Opportunities (Marketing, Storage, Distribution,Transport, Refining):
• Technical Partnership
• Field Development Contractor Financing
• Gas utilization
• Refineries maintenance
• Pipeline/ Depots construction and maintenance
• Petroleum Products haulage
• Petroleum products marketing
• Gas Development/conversion
• Butanisation project
• Fertilizer plants
• Vehicular fuels
• Methanol / MTBE plants.
Gas Sector Opportunities
The government as at December 2008 had finalized plans for the establishment of an onshore natural gas processing plant to process the natural gas that will be produced from the jubilee oil and gas field.
The first phase will entail a 150million ft3 gas processing plant at Atuabo. An 8km2 land area has been acquired to be developed into a petrochemical industrial park to house the gas processing plant and ancillary industries.
Opportunities available in this sector include:
• Production, transmission, distribution of Natural Gas –independent ownership
• Natural Gas Liquids (NGLs) – these liquidshave high market value and find application either in their raw state as solvents, feed stock (for production of various chemicals) and liquid fuel or fractionated into their components, viz.: LPG, Natural Gasoline etc
• Natural Gas-Fired Equipment
• Independent Power Plant (IPP)
• Industrial market, commercial market and residential market
• Domestic natural gas sales and distribution
• Compressed natural gas as, (NG) automotive fuel, Gas Liquids (NGL), Gas to Liquid Conversion (GTL), Methanol etc
• Ammonia/fertilizer plants.
GENERAL INCENTIVES :
ncentives to the sector may apply under the following provisions:
• There is customs duty exemption for plant, machinery and equipment imported for investment purposes
• All companies enjoy a corporate tax rate of 25 %