There is no doubt that the discovery of oil and gas has added to the country’s revenue stream and also provided the chance for Ghana to diversify the sector to the benefits of the country even at the face of the world’s dwindling oil prices.
The good thing is that the country is endowed with the associated gas estimated at about 5.5trillion standard cubic which can potentially resolve the power supply deficit.
Oil fields
It is obvious that the country’s first independent oil field has come with opportunities such as developing local skills, ready offshore and onshore facilities to engage support services.
Currently, Jubilee is producing oil and the associated gas for the power sector of the country as other fields – Project TEN, ENI-Sankofa are being developed for more associated.
Since the first commercial discovery, the country saw multi-billion dollar oil industry players entering, unitising and developing the skills of locals to give meaning to the Local Content and Local Participation in Petroleum Activities) Regulations, 2013 (LI 2204) which was passed in 2013.
The local content provides the perfect platform for the country’s diversification process as it seeks to encourage more locals to participate fully.
Benefits
Currently, various institutions such as Regional Maritime University, Takoradi Technical Institute (TTI) and Kikam Technical Institute are retooling to enhance skills training in upstream and downstream operations in the areas of welding and fabrication among others.
It is good that the country has learnt from mistakes of gold, timber, cocoa, manganese and bauxite among others which are exported at the raw state and now wants to develop the skills to drive these commodities and use the gas to ensure sustainable power for industrialisation.
The local content law introduced in 2013, if fully implemented, will propel the country’s economy as experience of economies of many developed and developing countries indicate that linkages between the primary resources sector and other sectors impact economic growth.
The Paramount Chief of Esikado Traditional Area, Nana Kobina Nketsia V, urged the managers of the oil resources to look for the examples in the sub-region and across the globe to show Ghanaians where the dangers were.
To Nana Nketsia, a historian, retired university lecturer and a traditional ruler passionate about the contribution of the Western Region, he said Ghana could not afford to fail because the examples were there as he admonished.
Yinson & MODEC
It was gratifying to note that, as the country moved towards the construction of the third floating, production and offloading platform, upon winning the main contracts, Yinson Production West Africa and MODEC showed commitments to local inclusion.
In the first instance, due to the speed at which the offshore production platform was required in 2010 for the first oil, FPSO Kwame Nkrumah there was no local content in the plan of development.
In readiness for that, Ghanaian local companies Seaweld Engineering, JVC, Belmet7 all fabricating companies in Ghana, ensured that they won part of the fabrication contracts.
Seaweld Ghana did it for the MODEC’s FPSO Mills and again joined others such as JVC, Belmet7 all playing vital roles in the construction of other components for the third FPSO for the ENI-Sankofa campaign which is expected in Ghana in 2017.
These moves are important; meaning that if the local linkages along the value chain are strong, carrying out chunk of the services here in Ghana using local hands with least supervision, with no imports of expertise, the country would become diversified in no time to enhance growth.
Atuabo Gas plant
Currently the shipment of gas to the wholly owned state infrastructure, the Atuabo Gas Plant, the onshore gas pipeline, various stations and delivering gas to the plants at the Aboadze Power Enclave would be not be detracted.
The first phase of the Atuabo gas processing plant, which involves the processing plant, pipelines, metering stations and others needed has been completed, according to the Chief Executive of the Ghana National Gas Company (Ghana Gas), Dr George Adja-Sipa Yankey.
Dr Yankey said Ghana Gas had started the process of expanding the existing facility to process and transmit bigger volumes to serve the power sector. “Our operations tie into the bigger dream of ensuring an industrialised nation since independence.
“At this age in the history of the country, there is the need to ensure enough power is generated by Ghana to propel growth and development as envisaged by the first President of Ghana, Osafegyefuo Dr. Kwame Nkrumah.
“Part of Nkrumah’s vision was to ensure that the country had a dedicated workforce, enough power to feed industry which led to the construction of the Akosombo Dam, unfortunately currently being affected by low in flows.
“The attention given to the plant and offshore operations is to build on Nkrumah’s vision for the power sector to drive growth. We can invite investors across the globe, build all the factories that we want, but with inefficient power supply, we will not achieve it.”
The history
Though exploration for oil and gas in Ghana's sedimentary basins started precisely in 1896 onshore Tano basin in today's administrative Western Region, it took improved offshore technology by Kosmos Energy for commercial discovery in 2007.
In the early days, presence of onshore oil and gas seepages found by early explorers in the present Jomoro District led to some form of production until after the explorers abandoned their operations due to the world war.
From the history, between 1896 and 1957, according to Ghana National Petroleum Corporation (GNPC), 21 shallow exploration wildcats were drilled and most of it encountered hydrocarbon in shallow horizons.
Again, with the various activities that encountered some amount of oil and gas, the country continued its campaign offshore which led to the drilling of the first offshore well in the Saltpond Basin in 1970 and production in 1978.
The later formation of GNPC and attentions given it by the PNDC and the fourth republic has so far created high level of interest in search of oil in Ghana.
Social benefits
To ensure that companies are stronger at the face of dwindling natural resources, companies including international oil companies operating in Ghana, have embraced the integrated reporting system which takes into consideration sustainability reports in addition to financial reports.
The cover issues from philanthropic handouts in the areas of education, health, water supply among others to the issues of environment and stakeholder engagements.
One would hope that, if only the first independent oil production of a maximum of 120,000 barrels per day could trigger contributions to the annual budget funding, stabilisation, heritage, infrastructure and contingency funds what would be??? if the country produces 500,000 bond?
The time to act, tool educational institutions, develop skills and capacity is now as better times are ahead.