The government has approved an amendment of the Plan of Development (PoD) for the integrated Offshore Cape Three Points (OCTP) Oil and Gas Project.
It will pave the way for the OCTP partners to continue to evaluate the Campanian reservoirs with a view to submitting options on how to develop and produce the Campanian reservoirs as part of the overall OCTP Integrated Oil and Gas Project.
It will also ensure that an incremental upstream value of US$2.4 billion in cash flow is created to be shared among the parties and this enhances the state’s, including Ghana National Petroleum Corporation (GNPC) net expected benefits on a present value basis.
The deputy Minister, Petroleum, Dr Mohammed Amin Adam, who announced this at a forum in Accra said in addition to gas from Jubilee and the Tweneboa, Enyera and Ntomme (TEN) fields, and gas from Nigeria, the OCTP gas promised to increase availability of gas in Ghana.
“I am happy to note that the main project has been successfully completed and gas is flowing from the fields since July this year.
We are even poised to recover more oil and gas from the fields,” he said.
The amendment of the PoD is expected to help recover more oil and gas from the field and to increase availability of gas in the country.
The OCTP is an integrated deep-water project in Ghana split into two stages: the development of first oil, then gas deposits.
It is operated by Eni Ghana Exploration and Production with a 44.44 per cent stake, along with its partners Vitol Ghana upstream with 35.56 per cent, the Nation Oil Company and GNPC with 20 per cent.
The field is around 60km (37 miles) from Ghana’s western coast and boasts approximately 40 billion metric cube of non-associated gas reserves and 500 million barrels of oil.
The Sankofa field is expected to produce 180 million cubic feet of gas per day for at least 15 years. Production began in July and it will provide enough to convert half of the power generation capacity of Ghana into gas.
Gas for industrialisation
He said leveraging the gas resource for industrialisation was relevant because utilising gas for industrial development was about the surest way of facilitating low cost industrialisation, including reducing the environmental cost and other external costs associated with oil-based development.
He said government had provided the roadmap for a comprehensive and coordinated reform strategy that could position the gas industry as the leading contributor to value-added industrialisation in Ghana.
He added that already, gas had become the principal source of fuel for power generation and certain other strategic sectors were also getting ready to receive natural gas.
“Gas is already being supplied to a few ceramic factories, and is expected to reach the mining industry soon.
We are also taking steps to provide natural gas to meet the heat and power demand in our industrial enclaves in Tema and Takoradi,” he said.
He also explained that the country had significant bauxite deposits and it was taking steps to convert it into alumina and aluminium for the country’s own use and export as well. — GB