President Nana Addo Dankwa Akufo-Addo, on Friday inaugurated First Oil from the Jubilee South East (JSE) Project, a project undertaken by Tullow, in collaboration with the Ghana National Petroleum Company (GNPC), Kosmos Energy, Jubilee Oil Holdings Limited, and Petro SA.
According to President Akufo-Addo, the success of the South East Project aligns with the broader Jubilee field plan, aimed at bolstering gross production from the field’s eastern side.
“With a collective investment of some one billion United States dollars (US$1 billion), our target of maintaining production above one hundred thousand (100,000) barrels of oil per day from this field, by year end, is well within reach. With some three hundred million (300 million) barrels of oil estimated within the Jubilee field, this triumph augments our confidence in other prospects across the nation,” the President said.
Addressing the gathering, the President indicated that the triumph of the JSE Project reinforces his government’s determination to encourage further investments from partners in the TEN field project.
This expansion, he said, will consolidate Government’s achievements in the oi and gas sector, stressing that “the TEN field, enriched with substantial gas reserves, is pivotal to our nation’s natural gas production and the stability of our power sector in the coming years.”
President Akufo-Addo told the gathering that he was aware of commentary, both in the media and other corridors, about the viability of making great use of Ghana’s natural gas produced domestically to support the needs of the country’s power sector.
“Players in the oil and gas sector have been advocating for a commitment by Government to consider deploying more natural gas produced domestically to solve the challenges in providing sustainable electricity for individuals, households and businesses,” he said.
The President continued, “I want to re-emphasize our commitment to expedite discussions and agree mutually acceptable terms for a combined gas sales agreement between Tullow, its Joint Venture Partners and Government. This step will pave the way for heightened success and revenue generation in the sector, fostering the use of natural gas for domestic purposes, and the creation of allied industries. Such utilisation is especially critical in meeting approximately half of our power generation requirements.”
Touching on Local Content and Ghanaian participation in upstream petroleum operations, President Akufo-Addo stated that Government’s position on local content is not just about supplying ancillary services to the sector, but also having a stake in the resources as well.
“We must collectively endeavour to train our people to get to a level where they have the capacity to be able to participate fully in the industry, and our position is to strengthen all training vehicles in the various industries of the Energy sector, like the Accelerated Oil and Gas Capacity Building Programme, to ensure that Ghanaians have the relevant certification to become competitive, and play a fuller role in the industry. That fuller role will be most effectively anchored when we ensure Ghanaian equity participation in the upstream development of our oil and gas resources,” he stated.
With Ghana being a signatory to the Paris Agreement, which the 2nd President of the 4th Republic, His Excellency John Agyekum Kufuor, was a co-Chair of its deliberations, and other international conventions, which requires the country to reduce her carbon dioxide emission levels, President Akufo-Addo acknowledged that it has become imperative for Ghana to develop plans and strategies toward the creation of a net-zero energy sector.
“However, as I have reiterated on previous occasions, whilst working hard to combat the effects of climate change, it is also important to protect our development by making sure that our oil reserves do not become stranded assets, but, rather, a catalyst for our economic growth. Our position remains unchanged,” he added.
Ghana, the President reiterated, has everything going for it as a destination for investment– a stable political system, a robust legal framework, a viable fiscal regime, a good telecommunications system, a hardworking, skilled labour force, and warm, hospitable people.
“I wish to assure the investor community of our continued support to ensure that their investments are safe in law and in fact, and that they are able to flourish in our country within the context of our relevant laws. Our doors are always open for conversations on your presence in Ghana, and I hope the good, warm relations we have fostered over the years will continue to endure in the times ahead,” he added.