Ivorian oil discovery not a threat -Buah
THE government and Kosmos, one of the Jubilee partners in the oil exploration business in the country have downplayed the impact of the oil discovery in neighbouring Cote d’ Ivoire on Ghana’s oil reserves.
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A direct question posed by the GRAPHIC BUSINESS to the sector Minister, Mr Armah Kofi Buah after the inauguration of the new head office building of Kosmos Energy at Dzorwulu in Accra, as to whether the Ivorian discovery would have any impact on the country’s reserves, he replied in the negative saying “No; I do not know why it should”.
He would not, however, elaborate but said the Jubilee fields would not be a threat to Ghana’s young discovery.
Later in an interview with Mr Brian Maxted, the Chief Executive Officer of Kosmos Energy, also allayed the fears of some sections of the public regarding the impact of the Ivorian discovery on the Jubilee Fields saying “We do not think this discovery will be any threat to the Ghana discovery”.
He said the find in the Ivorian waters was different from what Ghana had and saw no reason why that should be a threat.
Total, on April 25, 2013 announced that the Ivoire-1X exploration well encountered 28 meters of net oil pay in a series of about 100 meters of Cretaceous reservoirs.
Total, had in a statement said the well confirms the extension into Block CI-100 of the already proved active petroleum system in the prolific Tano basin, home to several fields, including Jubilee in Ghana.
Operated by Total Exploration & Production Côte d’Ivoire, Ivoire-1X is located in the western portion of Cote d’Ivoire’s Block CI-100 in 2,280 meters of water. It is the first well drilled on the CI-100 block.
Total says the well was drilled to a total depth of 5,044 meters and the oil in the abrupt margin geological play is light 35 API oil.
According to the French company, the data acquired during drilling is being analyzed to develop an appraisal programme for the reservoirs discovered and explore identified prospects further east in the block, near recent discoveries in Ghana.
Total E&P Côte d’Ivoire operates the block with a 60 per cent interest, alongside Yam’s Petroleum LLC (25 per cent) and Petroci Holding (15 per cent).
Ghana discovered oil in 2007 in commercial quantity and started production in December 2010.
Ghana’s oil reserve is estimated at about 1.5 billion barrels which is expected to be drilled continuously for between 25 and 30 years or more.
Meanwhile, Kosmos Energy has indicated its intention to inject US$400 million into its operations in the Jubilee oil fields this year.
GHANA GAS RESERVES
About the gas reserves locked up in reservoirs in the Jubilee fields, Mr Maxted said “there are many options that the Jubilee partners can consider to avoid any threat to the wells.
He said the players could for instance drill new wells to store some of the gas to reduce the pressure on the reserves among many other options.
Mr Maxted noted however, much as these could be done to reduce the threat, it is also serve the purpose for the country should the gas project be completed on time to bring the gas out of the reserves for commercial use.
“It is better to produce energy from gas than crude oil because of the cost issues and therefore, should the gas project be completed on time, the government will save a lot of money as far as the generation of electricity is concerned in the country”, he said
The Gas Infrastructure Project involves receiving gas from the oil and gas fields in the Tano (Western) Basin and processing it into lean gas, propane, butane and condensate.
According to the Ghana Gas Company Limited, the overall goal of the project is to ensure that natural gas, associated gas and NGLs produced in Ghana are effectively and efficiently processed into clean fuels and feedstock for domestic, and export market; promote the development of petrochemical industries; substantially reduce and/or eliminate flaring of gas; and develop Western Region of Ghana as a new economic growth pole for the country in the long term.
The initial gas to be processed will come from the Jubilee field which is located approximately 50km offshore Ghana, in the Western Region.
Story: Charles Benoni Okine