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President Nana Addo Dankwa Akufo-Addo has turned on the valve at the offshore Jubilee Field to signify the production of additional oil from a new well, the Jubilee South East (JSE) Project.
This successful project adds about 30,000 barrels of light sweet crude oil per day (bopd) to what is being produced from the country’s premier oilfield, the Jubilee Field, which lies offshore Cape Three Points in the Western Region.
Production from the field started dwindling from a peak of 120,000bopd in December 2010 to about 70,000bopd.
The additional oil has been made possible through the $4 billion Value Maximisation Plan put in place by the lead operators of the Jubilee Field, Tullow Ghana and its partners, to develop new projects over 10 years.
The partners have invested $1 billion in the JSE Project in three years to drill wells and install subsea infrastructure needed to bring previously undeveloped reserves to production.
The consistent investment saw the successful JSE project, which added more than 30,000 barrels with the current production to 106,000bopd.
The project has advanced the use of Ghanaian suppliers and companies in-country who are fabricating the majority of the complex offshore infrastructure, with more than 90 per cent homegrown workforce.
The success of the project is said to be the demonstration of the evolution of the Ghanaian supplier base that could now support substantial elements of its oil and gas industry and is testament to the partners’ commitment to developing local competences and capabilities.
The Jubilee Partners described the success and the current level of production from the Jubilee Field as a major milestone for the partners and for the country.
At exactly 12 noon, President Akufo-Addo turned the valve to symbolically commence the pumping of first oil from the Jubilee Southeast.
He arrived at 11 a.m. on the Floating, Production, Storage and Offloading (FPSO) vessel, Kwame Nkrumah, in a helicopter and went through the safety briefing before being led by a Tullow official to the control room and the flow line where he turned the valve to open the pipes for the crude oil to gush through from the block to the production vessel.
After the exercise, the President returned to Takoradi to address a large gathering.
President Akufo-Addo commended the Jubilee partners for their commitment to the country and the immense contribution towards the reversal of dwindling levels of oil production at Jubilee and, by extension, the country.
“Today, as we commemorate the delivery of the Jubilee South East Project and the attainment of first oil, I commend the dedicated operator, Tullow Ghana, in collaboration with its partners, the Ghana National Petroleum Company (GNPC), Kosmos Energy Ghana, Jubilee Oil Holdings and Petro SA.
The President said the partners had shown exceptional commitment to make this achievement possible.
“It is truly a moment of joy for us all, a testament to what collaboration and strategic partnerships can do,” he said.
President Akufo-Addo added that the government's policy was to make the upstream petroleum operations a catalyst to create value through local participation.
To that end, he said, the Local Content and Ghanaian Participation law L.I 2204, which was passed in 2013, had been amended to include channel partnerships
and strategic alliances in the upstream petroleum sector.
“The oil industry has become an important contributor to the growth of our national economy.
The significance of the petroleum sector in the Ghanaian economy is evident in its share of gross domestic product, exports and government revenues,” the President stated.
In synergy with other pivotal sectors such as mining, services, industry and agriculture, the President said the oil and gas sector was crucial to the government's efforts to move the nation on the path of sustained progress and prosperity.
The Board Chairman of Tullow Ghana, Phuthuma Nhleko, said the success of the project defined the clear pathway to ensuring mutual benefit of all stakeholders.
He said reaching the milestone and increasing gross production above 100,000bopd spoke very much of collective oversight to elevate the success of the field to ensure its relevance.
“Let me assure you that we will nonstop here – we are yet to see the full extent and potential of the greater Jubilee Field and a good sign forth country, the economy and people of Ghana as well as the partners,” he said.
The Managing Director of Tullow Oil Ghana, Wissam Al-Monthiry, said the Jubilee partners were proud with other achievements in the area of local content, which saw the participation of Ghanaians on the fabrication of some of the world’s most advanced subsea equipment in Ghana.
“The partners are happy with the additional revenue that will come not only to the partners, but to the nation for the benefit of the people.
Naturally, Jubilee is big but keeps getting bigger and progressing to be one of the world’s elite oilfields with over a billion barrels of recoverable oil and gas which will serve the nation for more than a decade,” he said.
The Minister of Energy, Dr Matthew Opoku Prempeh, said the success of the project came with significant benefits to the country.
“One important aspect is the commitment of the partners to the country’s drive towards local content.
I must say that not only did the partner ensure the fabrication of the components but also the work was done by Ghanaians,” he said.
The Chief Executive of the Petroleum Commission, Egbert Faibille Jnr, commended the partners for the commitment to the development of the
industry in the country.
“The success is significant for the country,owing to the fact that most critical fabrications were done in Ghana which has led to transfer of skills.
“The success story today shows we are making headway and it is significant for local content development,” Mr Faibille stated.
