Crude oil production drops by 13.2% in 6 months
First half production from the country's three main oilfields has declined by 13.2 per cent to 22.45 million barrels (bbls) from 25.86 bbls in the same period last year.
The decrease in production from Jubilee, Tweneboa Enyenra Ntomme (TEN), and Sankofa-Gye Nyame (SGN) was a result of reduced production on all three producing fields during the period.
This was occasioned by planned shutdowns and other technical challenges such as flow assurance issues and non-performance of the En08-P and En10-P producing wells, poor reservoir performance and process upsets.
Crude oil production declined by 12 per cent, 17.5 per cent and 12.9 per cent in the Jubilee, TEN and SGN fields respectively.
Launching the 2023 semi-annual report of Public Interest and Accountability Committee in Accra on October 19, the Chairman of PIAC, Prof. Kwame Adom-Frimpong, stated that the decline seen for the period was the fourth consecutive reduction in year-on-year crude oil production volumes since inception.
“A lodgement of $540.46 million was paid into the Petroleum Holding Fund (PHF) as petroleum receipts for half year 2023 as compared with $731.94 million for the same period in 2022.”
“The revenues are derived from corporate taxes, surface rentals (acreage fees), crude oil liftings, and interest on the PHF.
This represents 26.2 per cent decrease compared with the same period last year,” he said.
The Jubilee production decreased from 14.91 million bbls in half year 2022 to 13.11 million bbls for same period 2023 (12.03 per cent).
Average daily oil production in the Jubilee Field in H1 2023 was 72,449 bbls compared to 82,560 bbls in half year 2022, representing a decrease of 12.2 per cent.
Crude oil production rates began in January 2023 at a relatively higher rate of 77,485 bbls per day but declined to 66,589.65 bbls per day in April before ramping up to 82,520.77 bbls per day, the highest in the half-year period.
According to the Petroleum Commission (PC), the drop in production was mainly due to poor reservoir performance and process upsets, while the increase in production was as a result of the addition of the J64-P infill well on May 22, 2023.
TEN productions declined from 4.39 million bbls for the period to 3.63 million bbls in first half of 2023 representing 17.5 per cent.
The average daily oil production declined from 24,263 bbls in 2022 half year to 20,032.24 bbls for the same period in 2023.
The highest monthly oil production during the period was recorded in March while February recorded the lowest.
The low production was mainly attributed to flow assurance issues and non-performance of the En08-P and En10-P producing wells.
SGN production declined from 6.56 million bbls for 2022 half year to 5.71 million bbls for the same period 2023 (12.9 per cent).
Average daily production reduced from 36,206.76 bbls to 31,562.9 bbls during the period.
The highest monthly oil produced within the period was in May with the lowest in February.
The Petroleum Commission reports that the low production volumes in February were mainly attributed to facility upsets: a trip of Gas Turbine Generator (GTG)-C on January 31, unavailability of High-Pressure Flash Gas Compressor-B, and trips of both GTG-B and C in February.
Prof. Adom-Frimpong stated that production rates ramped up in the month of March and remained steady until a sudden decline in production in June.
He said that decline was primarily due to the choking down of wells because of unavailability of the High-Pressure Flash Gas Compressor A.
He said that was done to minimise flare rates.
Cumulatively, the volume of crude oil produced in Ghana since first oil in December 2010, totals 582.65 million bbls as at the end of June 2023.