THE EMERGING OIL AND GAS SECTOR: POLICY CHALLENGES EITI WORKSHOP on Oil & Gas 18 TH JUNE, 2010 Kweku Boateng Ministry of Energy Ministry of Energy PRESENTATION OUTLINE
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EITI WORKSHOP on Oil & Gas
18TH JUNE, 2010
Ministry of Energy
Current Activity Map
North West Tano
132km to Takoradi
Mahogany-1 discovery well in Jubilee field is located 63 km (39 miles) from the Ghanaian coastline and 132km (82 miles) SW of the port city of Takoradi and is situated in the Tano Basin.
Phased Production of Field
Phase 1 production starts in 4th Quarter 2010
Exploit 278 Million Barrel Reserve
120,000 Barrel/Day Oil Production
120 MMSCF/Day Gas Production
Drill 17 wells (9 production wells, 3 gas injection wells, 5 water injection wells)
Wells tied back via subsea infrastructure to FPSO moored in the Field
Phase 2 production starts in 2013
Additional infrastructure required
240,000 Barrel/Day Oil Production
240 MMSCF/Day Gas Production
Produced Gas will be piped to Shore or injected.
Offshore loading to shuttle tanker
Wells tied back via subsea infrastructure to FPSO
The Petroleum Upstream is regulated by the following legislation;
Out of these pieces of legislation, the Model Petroleum Agreement was synthesized. The Model Petroleum Agreement serves as a basis on which all Petroleum Agreements are negotiated.
Key Institutions Involve:
The greatest deficiency is the lack of regulations/legislative instruments to give effect to the provisions of the Laws (Section 32 of PNDCL 84).
GNPC as a de factor Regulator and an Operator
Many regulators in petroleum sub sector
Inappropriate signals to investors
Proposed Framework – cont.
Scope expanded to include Regulation of Upstream and Midstream activities (licensing and other regulatory matters)
All natural gas regulatory mandates of Energy Commission and PURC (may be) added to NPA/PRA mandates
- Petroleum Upstream and Midstream (Licensing) Regulations proposed
- Petroleum Upstream and Midstream (Exploration, Development and Production operations) Regulations proposed
Capacity Building For Local Content Dev.
Action & Strategies
Inadequate port facilities at Takoradi main harbour to handle heavy equipment and materials for the oil field operations. Space for the oil activities is a problem at the main harbour.
Lack of civilian air base at Takoradi to handle efficient oil field operations.
Inadequate helicopter services in Ghana to cater for the oil field operations
Actions & Strategies
Plan to build a dedicated port separate from the Takoradi main harbour to handle the oil activities.
Local Content Policy
In the interim, the Navy has been very collaborative in supporting the oil industry with the use of the Naval Base for Supply vessels supporting the offshore operation.
At times some of the support vessels have to go outside Ghana for supplies of drilling materials and special equipment.
Heavy Lift Vessel
1.) Takoradi port – vessel berthing & mud plant
Issue/Challenges: how to ensure that the country receives maximum benefits from its petroleum sector development initiatives without compromising the integrity of the ecosystem and well being of the people by:
There is the threat of fishermen ramming their canoes into risers and anchor lines causing damages. These accidents could cost thousands of dollars.
There are others who tie their canoes to the anchor lines or the stern of the drilling rigs even when well testing is taking place on the rig.
The lives of these fisher folks are always in danger near the installations. There could be accidents such as capsizing if their canoes or canoes catching fire during welltesting. The distance from shore and the water depth at the location create challenges for them.
A slow response could mean lost of lives to these fisher folks who do not use life vests.
Oil thefts on the high seas by organized criminals.
For example the disappearance of the M/T Asterias from the Saltpond field location in 2003 is an incident we should prepare ourselves for the impending oil production from the jubilee field.
Piracy and hostage taking on high seas.
Militant locals who may disrupt onshore installations under the pretext of securing more oil wealth for their communities
Deliberate attempt to sabotage the offshore pipelines and other assets.
Possible collision of fishing vessels with the FPSO
Policy Goal: To create a safe, secure and enabling environment to facilitate the exploration, exploitation and distribution of oil and gas in Ghana, and to promote investor confidence
Can Ghana prepared for the challenges ahead?
Provided we are willing NOT to do it the usual Ghanaian way, (Good Policies, No Action):
The answer will be, Yes, We Can, Insha Allah