Energy
From The Report: Ghana 2013
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Since the discovery of offshore oil in 2007, Ghana has been adapting to the new reality of its hydrocarbons economy. In 2012 production at the Jubilee field increased 15% year-on-year to reach 27.4m barrels of crude oil, the entirety of which was exported for nearly $3bn. Oil production from the Jubilee field will likely plateau at around 140,000 bpd from 2013 to 2023. Gas production is also expected to peak at around 100m standard cu feet per day in 2015. The infrastructure needed to transport and process Jubilee’s gas resources is not expected to be complete until after 2013. As the gas processing plant nears completion in 2014, Ghana will be able to link its hydrocarbons output with its energy needs, bringing stability to the nation’s electricity sector. With GDP forecast to grow 8-9% in 2013, oil production and demand are both sure to continue rising.

This chapter contains interviews with Kwesi Botchwey, Chairman, Ghana National Gas Company; and Aidan Heavey, CEO, Tullow Oil.

Articles from this Chapter

Overview

Game changer: Hydrocarbons reserves have reshaped the economy
OBG
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Since the discovery of offshore oil in 2007, Ghana has been adapting to the new reality of its hydrocarbons economy. The initial euphoria has given way to some of the more challenging aspects of extracting oil and gas offshore, but with the Jubilee field producing near capacity and plans to develop the TEN field approved, Ghana is on solid footing to maximise oil production, development and exploration. As production grows, so too is energy consumption, and securing fuel for electricity, industry…

Interview

OBG talks to Kwesi Botchwey, Chairman, Ghana National Gas Company
OBG
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Interview: Kwesi Botchwey What are the priorities for finalising the necessary infrastructure for gas production? KWESI BOTCHWEY: We knew the timetable for developing the gas infrastructure was ambitious from the beginning, but it was driven by the need to align our implementation schedule with the production schedule of the Jubilee Oilfield partners. Nevertheless we have made a great deal of progress in the face of many odds. The Western Corridor Gas Infrastructure Development Project has five…

Analysis

It’s a gas: Natural gas has the potential to power the country
OBG
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Harnessing domestic natural gas to power the electrical grid will be one of the most immediate economic benefits of the recent hydrocarbons finds. The government is racing to construct the infrastructure to transport the gas produced at the Jubilee field, turn it into feedstock, and supply Takoradi’s thermal power plants. However, the project has been fraught with delays. Further, proven gas reserves are unlikely to cover growing energy demands. But when Ghana does tap the gas, by 2014, the…

Analysis

Training day: The influx of new projects has resulted in a skills shortage
OBG
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From the oil services firms building steel pallets in Takoradi, to marketing firms distributing fuel to industry, Ghana’s petrol companies offer attractive employment opportunities to the upwardly mobile populace. Prince Charles Dedjoe, the executive chairman of the Chadeco Group, told OBG, “The oil and gas sector is poised for growth, but the availability of qualified human capital is lagging behind. More local training facilities will be needed, but that will decrease operational costs…

Analysis

Investor interest: Planned investment slows pending new legislation
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As the first flush of exploration and production in Ghana’s offshore oil winds down, there is little planned greenfield investment in Ghana’s oil fields for 2013. Part of this is a result of domestic developments: in the first half of the year, with litigation over the 2012 results of the presidential election pending, debates over a revised exploration and production bill, and the approval of the TEN field’s plan of development moved ponderously. The slower pace was reflected in new capital…

Interview

OBG talks to Aidan Heavey, CEO, Tullow Oil
OBG
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Interview: Aidan Heavey To what extent are West African governments involved in exploration and production? AIDAN HEAVEY: It goes through phases: if it is frontier exploration where no exploration activity has been done yet, it is unusual for the government to be involved, but it varies from country to country. The countries that have a long track record of trying to find oil and have built up a national oil company tend to look for small interests right at the beginning. In virgin territory…

Interview

OBG talks to Aidan Heavey, CEO, Tullow Oil
OBG
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Interview: Aidan Heavey To what extent are West African governments involved in exploration and production? AIDAN HEAVEY: It goes through phases: if it is frontier exploration where no exploration activity has been done yet, it is unusual for the government to be involved, but it varies from country to country. The countries that have a long track record of trying to find oil and have built up a national oil company tend to look for small interests right at the beginning. In virgin territory…

Analysis

Continental divides: Rising African production has ramifications for Ghana’s export potential
OBG
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Improved technology and global demand for natural gas has set explorers scouring the African landmass and offshore waters for new deposits. Ghana is a beneficiary of this wave of exploration, but plans for increased output from elsewhere in Africa, the Middle East and Asia have affected the outlook for the country’s energy policies – particularly concerning exports. While exporting gas or gas-generated electricity can bring in immediate revenues, the global market is becoming more competitive.…