Scramble For Ghana’s Oil – GNPC Ready To Buy Out Kosmos Shares
The Director of Exploration at the GNPC, Mr Thomas Manu, who gave the assurance in an interview with the Daily Graphic, said, “The GNPC is fully funded to acquire the stake in the Jubilee oilfields.”
The oilfields, valued at more than $4 billion and jointly owned by Kosmos Energy, Tullow Oil Ghana Limited, Anadarko Petroleum, Sabre Oil, Ireland, the GNPC and the E.O. Group, have become the target of a keen contest between Exxon and BP following the alleged decision of Kosmos to sell its one-quarter share in the project to Exxon.
In its Monday, November 30, 2009 edition, the Business Times of London reported that as the January deadline for the signing of the contract between Kosmos and Exxon approached, the battle between ExxonMobil and BP was set to intensify.
“Exxon agreed in early October to pay $4 billion (£2.4 billion) for the quarter stake in the Jubilee field.” it said.
“The sale agreement struck with Kosmos Energy, the US firm, was done despite requests from the Ghanaian government to slow down the process,” the paper added.
Mr Manu, however, stated that he was not aware of any agreement between Kosmos Energy and any oil company and pointed out that as a partner in the oilfields, the GNPC was ready to purchase the stake.
“The GNPC is looking at Ghana’s interest first, just like other companies will look at their shareholders’ interest. We are committed to ensuring that Ghanaians derived the maximum benefit from the oil find,” he emphasised.
“If a stake in a hugely prolific field becomes available for sale, the GNPC has the mandate if the acquisition of that stake will lead to an increase for the benefit of the people of Ghana,” he added.
He explained that the GNPC was mandated by law to promote the exploration, development and production of the hydrocarbon resources of the country, adding that “and in so doing the GNPC is mandated to ensure that the country derives the maximum benefit from its hydrocarbon and petroleum resources”.
He further pointed out that the GNPC also had the mandate to ensure that oil companies operated in an environmentally friendly manner, as well as a transparent manner and in accordance with international standards.
Currently, he said, the GNPC and Kosmos Energy were in discussions to resolve differences which arose as a result of Kosmos’ disclosure of data on the project to investors which infringed on the agreement entered between the GNPC and Kosmos.
He indicated that the GNPC and Kosmos Energy “are having a constructive resolution of the data disclosure”. “The GNPC has the mandate to ensure that the laws of the country are obeyed at all times by all companies, big or small,” Mr Manu said, and gave the assurance that those issues would not in any way hamper the smooth development of the oilfields.
He reiterated that fact that commercial production of oil would begin in the last quarter of 2010.
The workshop is also aimed at showcasing the Norwegian model of policy implementation in the oil industry in order to build the capacity of local companies to meet international standards.
Addressing participants in Accra, Mr Hakon Hynne, a Senior Researcher and Leader of the Norwegian delegates, said SINTEF had received three million euros from the Norwegian Research Agency for Development (NORAD) to fund a three-year project of capacity building in Ghana.
He said the workshop, also a collaboration of the Norwegian University of Science and Technology (NTNU), was to provide the Norwegian delegates a feedback into formulating a document for effective implementation of the three-year pilot project.
Mr Hynne said SINTEF and NTNU had successfully implemented such projects in many countries and expressed the hope that the project would help local companies operating in the oil industry to form clusters and cooperate in order to increase productivity and quality of service in the oil sector.
Dr Abdulai Baba Salifu, Director General of the Council for Scientific and Industrial Research (CSIR), in a speech read on his behalf, observed that the major challenge facing Ghana was how the oil resources, discovered in commercial quantities, would be effectively developed and equitably managed to benefit the country as well as the local communities in the catchments area.
“Another challenge is the ability to ride on the exploitation and development of the crude oil to diversify the national economy and achieve industrial growth through the establishment of companies related to serving the oil industry,” he said.
Dr Salifu cautioned that the country needed to learn from the sad experiences from the timber, cocoa and mineral sectors where conflicts between people living in communities affected by operatives of such companies over expected concessions and other benefits existed.
“The issue of building institutional, legal and regulatory frameworks before the production of oil to ensure that the concerns of local industry, communities and people are mainstreamed into the oil industry right from the onset should not be left to providence,” he said.
Dr Salifu expressed the hope that Norway’s three-year project partnership it had formed with Ghana would help the country map out strategies that would minimize conflict and ensure fiscal responsibility in the oil sector.
Mr Edward Appiah-Brafo, Principal Human Resource and Administrative Officer of the Ghana National Petroleum Corporation, called for inclusion of the public, local companies as well as government in the oil industry to transform the national economy as well as to reduce risk exposure in the oil sector.
“There should be Ghanaian participation in the procurement of imported goods, a good percentage of Ghanaian ownership and management in the oil companies. This is what local content is about,” he said.
Mr Kwasi Abeasi, Chief Executive of the Africa Investconsult Limited, said “one of the yardsticks with which we should measure our success in making the oil discovery a blessing should be the local content or involvement of our people not only in the activities in the industry but also the benefits accruing from the industry.”
Dr George Essegbey, Director of STEPRI, said the principle of equity and transparency should govern the distribution of wealth from the oil exploitation.
“We also need to build capacity for the roles we need to play in the oil industry. That way we can be sure the expected wealth would be created and accessed equitably,” he said.
Source: GNA
June 16, 2009 by reportingoilandgas
The Department of Chemical Engineering of Kwame Nkrumah University of Science and Technology (KNUST) in Kumasi would begin a programme in Petrochemical Engineering this year. Professor Kwasi Kwafo Adarkwah, Vice-Chancellor of the university who announced this said it was to support the development of the oil and gas industry following the oil find in Ghana. He was speaking at the second batch of the 43rd Congregation of KNUST in Kumasi on Tuesday.
GNA
June 15, 2009 by reportingoilandgas
Ghana National Petroleum Corporation (GNPC) said that Ghana has issued 11 new exploration licenses. First oil revenues are already scheduled for 2010. Huge tracts of the Ghanaian coast are already being licensed and explored, with a significant discovery by Tullow Oil plc (Tullow) in 2007 causing a rush of interest. But only in March 2009, Tullow has made a new discovery on the deepwater Tano license some 25 kilometers west of Jubilee, which has yet to prove feasible.
http://tinyurl.com/n7zcpt
June 11, 2009 by reportingoilandgas
The China National Offshore Oil Company (CNOOC) is seeking to bid about $4 billion for a 30% stake in the Jubilee fields of Kosmos Energy, reports from the international oil industry reaching ghanabusinessnews.com have said.
Texas based Kosmos Energy has a stake in the Jubilee fields. The other partners are Tullow Oil and Anadarko. The Jubilee oil fields have 17 wells and it is said to be the largest to be discovered in West Africa in the last 10 to 15 years.
The reports quoting an insider from the biggest Chinese offshore oil producer confirmed that CNOOC would consider bidding for the stake, but did not tell how much it will offer, for it is uncertain whether it will win the bid or not.
Kosmos Energy which is a major foreign investor and operator in the oil industry in Ghana owns oil and gas assets worth $3 billion to $6 billion in the country.
The Jubilee oil field has a possible oil reserve of 1.2 billion barrels at most. It is expected to start commercial production in June of 2010.
Meanwhile, when news broke in February 2009 that Kosmos Energy had appointed advisers to handle the sale of its stake in the Jubilee fields, officials of the company denied the reports claiming it was false.
Mr Andy Mormon, Asset Manager of the Texas based oil and gas exploration company told the media, “we are not for sale, categorically we have not hired an agent, we have not opened the data room, we are not for sale.”
The officials of Kosmos Energy are yet to comment on this latest development.
By Emmanuel K. Dogbevi
June 11, 2009 by reportingoilandgas
West Africa now offers “unparalleled opportunities” for major and independent oil and gas companies, writes Patrick Morris, CEO of Vancouver-based Gold Star Resources Corp. (OTC Bulletin Board: GXXFF; TSX-V; GXX; www.goldstarresources.com) in the June 10th issue of AFROIL, Africa Oil & Gas Monitor, an online publication of Newsbase Ltd., Edinburgh, Scotland read by subscribers in 25 countries (www.newsbase.com; Week 23; page 5 Guest Column). Morris, author of a news column published in AFROIL entitled “West African Oil Rush, Challenges”, reported that changing geopolitics, reduced security and political risks, the recent 1.8 billion barrel discovery in West Africa’s largest oilfield, the Jubilee in Ghana, and a new African foreign policy by recently elected U.S. President Barack Obama have all helped in making West Africa a “desirable destination for oil and gas exploration and production.”
According to Morris, “For a long time West Africa has been off the radar of the international community because of messy politics and brutal civil wars. Also, apart from Nigeria and Gabon, there had been the disappointing size of oil discoveries made at times of low oil prices. All this is now changing. Expectations by countries and oil & gas companies to discover new reserves in the region are high. Exploration and seismic research activities are underway in all countries of West Africa bar Burkina Faso and Cape Verde. Governments are also actively involved. For example, in Liberia, the National Oil Company of Liberia (NOCAL) is promoting oil and gas exploration and development of its hydrocarbon resources along its continental shelf and slope. The sub-region is also gaining global attention as calm has been restored to countries such as Liberia, Sierra Leone and Cote d’ Ivoire, reducing security risks.”
“The role of junior exploration companies is to set the trend,” Morris writes in his news column. ” For example, Gold Star Resources is the first and only junior company to go after onshore oil and gas opportunities in Cote d’ Ivoire and Liberia since the 1970s. Larger players are competing for offshore blocks all along the coast – but with no plans for any onshore exploration.”
Gold Star Resources recently signed a Letter-of-Intent with Bengal Bight Ghana to acquire 100% of the hydrocarbon rights to the Tiampoum mining concession, approximately 1,000 square km, in Cote d’ Ivoire. In January, Gold Star entered West Africa when it acquired 90% of the issued and outstanding shares of Liberia’s International Resources Strategies Liberia Energy (IRSLE).
Source: PR Newswire news/Gold Star Resources Corp.
June 9, 2009 by reportingoilandgas
Afren plc announces that drilling operations have been completed at the Cuda-1x exploration well, located in the Eastern Basin offshore Ghana.
The Cuda-1x exploration well, the first well to target the Cretaceous prospectivity in the block, reached a total measured depth of 12,425 ft. Drilled in 5,597ft of water by the Transocean Deepwater Discovery drill ship, the well encountered an unexpectedly severe high pressure zone in the top of the Upper Cretaceous which ultimately required Cuda-1x to be plugged and abandoned. This was prior to the well penetrating the primary Cretaceous objectives, which remain of high potential but untested.
Evaluation of the well results is ongoing and will be incorporated in further prospect evaluation and future well planning on the Keta Block.
Interests in the Keta Block are as follows: Afren Energy Ghana 68%; Mitsui E&P Ghana Keta 20%; GNPC 10%; Gulf Atlantic Energy 2%.
Osman Shahenshah, Chief Executive of Afren, commented: ‘Whilst we are disappointed at the outcome of this operation, we remain highly optimistic as to the exploration potential of the Keta block, where several attractive prospects, in addition to Cuda have been identified. The Cuda-1 well was targeting a previously impenetrate section in a sparsely drilled basin, and has provided Afren and its partners with valuable information that will assist future exploration efforts in this world class block which has billion barrel potential.’
credit : http://www.gulfoilandgas.com/webpro1/MAIN/Mainnews.asp?id=6980
June 9, 2009 by reportingoilandgas
Tullow Oil to meet June 2010 date for drilling Ghana’s oil
UK based Tullow Oil says it is on course to start commercial drilling of oil in Ghana in June 2010, the company insists the date will be met.
Tullow Oil is exploring for oil in Ghana together with Kosmos Energy, Anadarko and some other junior oil companies as partners.
Oil was discovered in commercial quantities in Ghana in 2007. The announcement of the find immediately made Ghana a destination point for some of the world’s major oil and gas industry players.
Speaking at a sentisation forum on the activities of oil companies with communities at Takoradi in the Western Region last week, Alan Duworkpor, Drilling Manager of Tullow said, the development of the Jubilee Field is on course and all 17 wells of the Jubillee Field are intact.
Issues on the equitable distribution of oil revenues were also discussed. Meanwhile, there are outstanding issues regarding Tullow Oil’s adherence to environmental regulations of Ghana. The Environmental Protection Agency (EPA) insists, the company and its partner, Kosmos Energy have not fulfilled requirements for Environmental Impact Assessment (EIA) permits, and therefore, cannot go ahead with their drilling activities, but the two companies say, contrary to claims by the EPA, they have completed EIAs and therefore, could go on with their drilling activities.
Some NGOs, such us Third World Network and ISODEC have expressed concern over the lack of transparency and non-compliance with the country’s environmental regulations by the oil companies. The NGOs have accused the oil companies of misrepresenting their EIAs to the International Finance Corporation (IFC) of the World Bank Group to secure loans to the tune of $215 million. The Jubilee oil field has been described as the largest to be discovered in West Africa in the last 10 to
June 4, 2009 by reportingoilandgas
In August 2007, Ghana through a consortium of oil exploration companies announced the discovery of oil in commercial quantities off the Western shores in Ghana’s Western region. The initial estimate by Tullow Oil PLC and its partners of 800 million barrels of oil in the deep water Tano block has now been revised upwards to a potential reserve between 2 to 4 billion barrels.
With the expected flow of commercial quantities oil and gas beyond 2010, there is an urgent need for journalists especially those specializing in coverage of oil and gas issues to stay on top of key issues in the industry in order for them to play the important role of informing and educating the general public of the impact, challenges and benefits of the huge oil and gas find thereby deepening public education and discourse.
In order to help journalist minismise misreporting in this highly technical area, an industry knowledge base, facilitating networking with industry experts and monitoring, the International Institute for ICT Journalism (www.penplusbytes.org) has launched “ Reporting oil and Gas” project at the ongoing WABA Ghana Oil and Gas Business Conference and Exhibition, in Takoradi, Western Region. The key building blocks of the project are online portal, mailing lists, face to face and online training. According to Eric Osiakwan, Director at PenPlusBytes, “we are pleased to launch this project because it will go a long way to provide journalists with information and knowledge they need to cover oil and gas issues effectively at a central online point” Reporting oil and Gas project can be found at www.reportingandoil.org and its evolving online network of journalists working in the oil and gas area can be found at http://groups.google.com/group/reportingoilandgas
The International Institute for ICT Journalism www.penplusbytes.org is serving as the co-ordinating organization for this project working hand in hand with key partners. PenPlusBytes seeks to empower the media through the use of ICTs to advance the work of journalism. It consists of a network of media organizations and journalists interested in using ICTs effectively to advance the course of journalism.
End
Takoradi, Western Region, Ghana
4th June 2009
May 31, 2009 by reportingoilandgas
Participants at an oil and gas forum in Accra have advised Ghanaians to learn from the mistakes of oil-rich African countries to make the discovery of oil in Ghana a blessing rather than a curse.
They described the late discovery of oil in Ghana as divine because it would enable the country to avoid the mistakes of other countries such as Nigeria and Angola.
Since the late 1950s when Nigeria discovered oil, for instance, the flaring of gas and environmental degradation from oil exploration have led to violent clashes between government forces and militant groups, resulting in the death and displacement of hundreds of people.
The latest of such clashes is being waged in the Niger Delta where attacks by militants, according to government sources; have led to about 20 per cent production cut by one of the world’s largest producers of oil.
“Ghana is particularly lucky in discovering oil late because it has a lot of lessons to learn from,” the Managing Partner of Oil and Gas Soft Skills Limited, Mr. Emmanuel Emielu, indicated at the forum organised by Zenith Bank Ghana to assess various opportunities expected to emerge from the exploration of oil and gas in Ghana.
He identified low standard of education as a major challenge to building the requisite capacity for Ghana to make maximum gains from its oil and gas endowment.
Mr. Emielu stressed the need to train accountants, lawyers and other professionals with deep knowledge of the oil industry to create indigenous capacity.
“If we don’t take control in building our own local content, others will take advantage of the situation,” he cautioned.
He suggested the building of a West African petro-chemical capacity so that it could even become possible for the sub-region to export its talents to other parts of Africa and the world.
The Managing Director of Sahara Group of Nigeria, Mr. Tonye Cole, advised oil companies to endeavour to address environmental and other concerns in the communities which they operated.
He said paying money to chiefs to keep the boys quiet would last for a while and after that the boys would come after the company.
An official of the West Africa Business Association Mr. Sam Poku, underlined the importance of good governance in enhancing the country’s democracy and also derive the maximum benefit from its oil find.
Some of the participants indicated that Ghana stood the chance of gaining more from its oil discovery if the price of crude oil on the world kept rising.
The Managing Director of Zenith Bank, Ghana, Mr. Andy Ojei, said the bank was poised to assist key players in the oil industry with a wide range of financial products, including Internet banking, cash evacuation, support for the acquisition of vessels and term loans and leases for transporters involved in fleet renewal and expansion.
Source: Daily Graphic
May 31, 2009 by reportingoilandgas
The West Africa Business Association (WABA) Ghana has indicated strong interest in the fledgling oil and gas industry of Ghana.
Chairman Mr Joseph Winful says the discovery of commercial quantities of oil is good news, especially for the business community.
According to him, the industry can potentially change the face of doing business in Ghana with many attendant opportunities. Hence, the association is strategizing to take advantage of the opportunities.
In this regard, WABA Ghana is organizing an international oil and gas business conference and exhibition from June 2-4 in the Western regional capital Takoradi. The theme for the event is “Oil & Gas; Ghana Asem Pa.”
Speaking at Tuesday’s press launch of the impending event in Accra, Mr. Winful said both local and international business entities are expected at the event. In addition, several local organizations and stakeholders from the public and private sectors are expected to show up. Specific activities will include series of strategic business seminars, insights about the future, networking sessions and an exhibition.
Mr. Winful said discussions at the conference will enable members of the association to reposition themselves and re-strategize to exploit the opportunities.
Drawing inspiration from the experiences on other oil-rich countries in the sub-region, Mr. Winful said the black gold could become a curse depending on how the country manages the sector.
He noted that the media have great responsibility to ensure that the proper legal and infrastructural frameworks are installed to optimize revenues gains. In this regard, he said the media could be blamed if the industry fails to benefit all Ghanaians.
Mr Michael Aryeetey, Staff Geologist of the Ghana National Petroleum Corporation (GNPC), called for caution with respect to speculations that the oil discovery will benefit only a privileged few.
Thus, he called on the media to deepen public education on the oil and gas find so as to prepare the public for the expected blessing.
In his view, it is very important to look at the “oil as a blessing for all.” He stressed the need to make the oil account for all, including posterity, by adopting appropriate saving mechanisms.
He urged Ghanaians not to ignore the fact that oil is a non-renewable resource with a life span of about 20 years.
In 2007, a consortium of oil exploration companies announced the discovery of oil in commercial quantities off the western shores of Ghana. The initial estimate by Tullow Oil PLC and its partners of 800 million barrels of oil in the deep water Tano block has now been revised upwards to a potential reserve between 2 to 4 billion barrels.
source : public agenda
October 13, 2009 by reportingoilandgas
The government is divided over whether to cut a deal with a leading Chinese oil company or with Exxon Mobil Corp. to develop a giant offshore oil field.
But govt officials seem to agree on one thing: They want to be done with Kosmos Energy, the tiny Dallas-based explorer that found the oil field in 2007.
Kosmos has been trying to sell its 23.5% stake in the Jubilee field off the coast of Ghana, a substantial discovery that holds an estimated 1.8 billion barrels of oil. Last week, the company entered into what it calls a binding agreement to sell its stake to Exxon for a price tag of about $4 billion.
However, Ghana’s oil minister and Thomas Manu, head of Ghana National Petroleum Corp., said they don’t consider the Kosmos-Exxon deal done and that they have the right to cancel any contract.
Mr. Manu contends that Kosmos is putting its interest in getting a good price over Ghana’s interests. “Kosmos has set dangerous precedents that, if allowed to go unrectified, will do continuing damage to Ghana,” Mr. Manu wrote in an email to the Journal.
Other people close to the government said Kosmos lost favor with officials when the Ghanaian energy minister felt he was insulted by a company executive during talks this summer.
Kosmos didn’t respond to requests for comment.
China National Offshore Oil Corp., or Cnooc, is in advanced talks with Ghana National Petroleum Corp. to team up and make a competing offer. While no bid has been made, the possibility is being taken seriously in Ghana.
Accra is split over whether to bring in a global-oil partner from China or the U.S., according to international consultants and people in the government. Both parties have something to offer.
Both global powerhouses are interested in deepening relations with the West African nation.Some factions in Accra favor a deal with the Chinese, because that is expected to open the door to additional infrastructure loans from Beijing, said Sebastian Spio-Garbrah, an Africa analyst with the Eurasia Group, which advises corporations on overseas risk.
Others worry that a Chinese deal would delay the start of oil production at Jubilee, postponing the flow of much-needed revenue.
The government will likely favor Exxon’s bid after receiving assurances “that it will quickly commence development and production… and generate much needed foreign-exchange revenues,” Mr. Spio-Garbrah wrote in a note to clients.
Jennifer Cooke, head of the Africa program at the Center for Strategic and International Studies, said the government “is under a fair amount of budget pressure,” and slashed domestic spending by 15% earlier this year to cope with declining revenue.
The Jubilee field is expected to come online in the third quarter of 2010 and eventually produce 120,000 barrels a day. Analysts say that Ghanaian officials believe bringing in Exxon is their best chance to reach that production target.
A Kosmos official confirmed that the energy firm has a “binding deal” in place to sell an interest in the potentially vast Jubilee oil field in offshore Ghana to oil major Exxon Mobil.
The deal — valued at an estimated $4 billion — would mark Exxon Mobil’s largest acquisition in about a decade.
It comes amid reports that China National Offshore Oil Corp. (CNOOC) – see report below – could also bid on assets off the coast of Ghana.
Kosmos Vice President and Chief Financial Officer Greg Dunlevy said in an e-mail to MarketWatch, “I can confirm that Kosmos has entered into an exclusive, binding agreement with (an affiliate of Exxon Mobil) to make a rival bid for Kosmos’ stake in the field, known as Jubilee.”
Kosmos owns 23.5% of Jubliee, with Tullow Oil holding nearly 35% and Anadarko Petroleum owning 24%. The Ghana government owns about 14%. Oil companies have said it’ll cost about $3 billion to develop Jubilee.
Officials in Ghana have said in press reports that they have not approved any transaction.
None of the five Western oil majors — BP, Exxon, Royal Dutch Shell, Chevron or ConocoPhillips have gotten involved in the Jubilee field, until now.
Big petroleum producers, faced with dwindling reserves at aging fields, have been keeping an eye on the mostly untapped waters off the west coast of Africa, near Sierra Leone, Ghana and other nearby nations.
Last month, Anadarko Petroleum announced a find off the coast of Sierra Leone, feeding hopes of a 700-mile stretch of prospects starting at Jubilee and going west.
China National Offshore Oil Corp is in talks with State-run Ghana National Petroleum Corp to bid for a stake in a large oil discovery off West Africa, the Wall Street Journal reported on Monday, citing unnamed sources.
The offer for Kosmos Energy’s stake in the discovery, Jubilee, would rival a $4 billion bid by Exxon Mobil Corp, the Journal said. The paper said CNOOC and GNPC plan to submit a strong competing bid in the next few days, citing one person familiar with the matter.
According to the Journal, the Chinese company sent some senior officials to Ghana several weeks ago, including CNOOC Chairman Fu Chengyu. The paper said CNOOC committed to an equity stake for GNPC in the deal and discussed helping the Ghanaians develop their national oil company.
Dallas-based Kosmos confirmed on Monday that it had agreed to sell its 23.5 percent stake in Jubilee to Exxon, the Journal said. Kosmos is backed by private-equity firms Blackstone Group and Warburg Pincus .
The GNPC source indicated the company could ultimately sell on any interest gained, while a separate source close to the matter said GNPC’s desire for a role “can be accommodated.”
Ghana has hired Morgan Stanley as its investment banker to advise it on the process.
State-run Ghana National Petroleum Corp (GNPC) believes Kosmos Energy’s deal to sell its stake in the huge Jubilee oil field to Exxon Mobil (XOM.N) is illegal and is ready to buy the stake itself, a GNPC source said on Monday.
Ghana has received expressions of interest from the China National Offshore Oil Corp for Kosmos’s stake, according to the source, who declined to be named. But the West African state is ready and able to make the purchase on its own, and would decide later with whom to partner.
The Jubilee field is one of the largest oil finds in West Africa in the past decade and sources said last week that Exxon Mobil had reached a multibillion-dollar agreement with Kosmos to buy its stake in the field.
“We have formally notified (Kosmos) that we do not recognise whatever agreement they reached with Exxon — we told them we disapprove of it because it’s illegal,” the GNPC source said.
The source said Kosmos had violated Ghanaian laws when it shared confidential exploration data with over 20 companies for its own commercial purposes without giving the GNPC any prior notification.
Ghana is due to start pumping oil from Jubilee in late 2010 and the country’s oil finds and relative stability in a turbulent region are luring investors.
Kosmos, which is backed by private equity groups Blackstone Group (BX.N) and Warburg Pincus [WP.UL], has a 30.875 percent stake in the West Cape Three Points block and an 18 percent interest in the Deepwater Tano block offshore Ghana.
The source dismissed analyst doubts over whether Ghana’s cash-strapped government would be able to raise the billions of funds needed to buy Kosmos’s entire stake.
“We have the money ready to buy all the shares of Kosmos,” the source said, adding that the GNPC was confident of acquiring the stake.
The Wall Street Journal reported on Monday that China’s CNOOC was in talks with Ghana to rival Exxon Mobil’s $4 billion bid for Kosmos’s stake in Jubilee.
The GNPC source confirmed that the CNOOC was interested.
“But as far as GNPC is concerned, that also remains only as an expression of interest, like many other companies … It could be any company — it could be the Chinese, it could be Exxon,” the source said.
Kosmos owns the field with UK-based oil explorer Tullow Oil and Houston-based Anadarko Petroleum ). It put its interest in the field on the market earlier this year.
via ghanaweb
September 16, 2009 by reportingoilandgas
The Sankofa-A1 well, drilled at Cape Three Points Block on Ghana’s offshore by Ghana National Petroleum Corporation (GNPC) in conjunction with Vitol Upstream Ghana Limited (Vitol), discovered a net hydrocarbon column of approximately 36.3 metres.
It comprised 33.1 metres of gas and 3.2 metres of oil in reservoir sands of Campanian age. A statement issued in Accra on Tuesday by the GNPC said “The success of this well confirms the prospects of these Upper Cretaceous reservoir sands in the Tano/Cape Three Points Basin blocks offshore Western Ghana where the Jubilee field was discovered and is being developed.” The Sankofa-1A well is located 38 kilometres east of the Jubilee field and 21 kilometres east of the Odum discovery in the West Cape Three Points block. Drilling at the well has been suspended for possible re-entry.
The target reservoir was successfully cored and a full wireline logging programme was also ran. The statement said the well was drilled with the Blackford Dolphin Semi-Submersible drilling rig in water depths of 866 metres and reached a total depth of 3,704 metres MD (3,674 metres TVDSS). The Vitol Block covers a total area of 2,080 square kilometres in water depths ranging from 50 metres to 1,400 metres.
This is the first exploration well to be drilled during the first phase (that is three years) of the three- phased seven-year exploration period provided under the Petroleum Agreement entered into with the Government of Ghana and GNPC in 2006. Vitol has 90 per cent interest in the block while GNPC has 10 per cent carried interest. GNPC has the option of acquiring an additional 10 per cent paying interest on commercial discovery.
It also operates the offshore Cape Three Points South Block. Nana Boakye Asafu-Adjaye, GNPC Managing Director said, “This discovery marks another milestone in the effort that GNPC has been making over the years to establish Ghana as a significant hydrocarbon province. Both the oil and gas that have been encountered in this well are of importance to Ghana’s aspiration”. Mr. Steve Want of Vitol said “We are excited that this first well in our exploration programme in Ghana has made a discovery. We will continue our close partnership with GNPC and the Government of Ghana in the exploration programme and look forward to more successes in the years ahead”. Vitol Upstream Ghana Limited, a subsidiary of Vitol Holding S.a.r.l., a major oil company, obtained the first petroleum agreement with the Government of Ghana in 2006, to explore hydrocarbons in the West Cape Three Points Block offshore Ghana and a second petroleum agreement in 2008 in the southern block-the Offshore Cape three Points South Block. GNPC was established under PNDC Law 64 in 1983 with a mandate to undertake petroleum exploration, development and production activities on its own or in association with other companies and to ensure that the exploration of these hydrocarbon resources benefited the people of Ghana. 15 Sept. 09
GNA
September 7, 2009 by reportingoilandgas
The University of Ghana, Legon, has introduced a Petroleum Geoscience course as part of the university’s new post-graduate programmes to respond to the high professional demand in Ghana’s petroleum industry. The new master’s degree programme was developed in collaboration with the university’s Geology Department and supported by the Ghana National Petroleum Company. Professor Clifford Nii Boi Tagoe, Vice Chancellor of the University announced this on Saturday in Accra at the matriculation ceremony held for students admitted for the 2009/ 2010 academic year. Other newly introduced programmes include a master’s degree in Clinical Trials, mounted by the School of Public Health and higher degrees in Biotechnology and Plant Breeding. The university had also introduced a Graduate-entry programme in the Medical School aimed at giving science graduates the opportunity to pursue medicine over reduced duration. Prof. Tagoe said the university had introduced bachelor’s degree courses in Adult Education and Sign Language as well as professional programmes in Pharmacy and Veterinary Medicine. He said the university had made conscious efforts to revise the course curricula to meet national demands and added that more than 130 courses had so far been revised. Prof. Tagoe said the university had put in place scholarship schemes to complement the 10 scholarships, sponsored by a US charity organisation, for bright but needy students admitted this year at an average amount of GH¢ 2,000 per year. Speaking on the issue of accommodation he expressed the hope that the construction of the university’s hostels complex would facilitate the accommodation of some 3,000 students in order to ease the stress. He said the university authority would start investigating the several allegations of students who sublet their beds to their counterparts. “Let me say that those caught to have indulged in this as well as the so-called tenants will be summarily dismissed,” he said. He cautioned students against the flippant use of the media in resolving matters that could otherwise be amicably addressed, through dialogue with the university authorities and stressed the use of institutional channels available on campus to solve complaints and other concerns. Prof. Tagoe told the matriculants to take advantage of other activities such as seminars, studio performances and sports to enrich their life on campus. “While developing your intellectual capacities, do not forget to also develop your spiritual life by devoting some of your time to worship and serve God,” he said. The university offered 16,943 applicants admission to pursue either the undergraduate and postgraduate programmes out of which 9,361 so far have enrolled. Source: GNA
September 3, 2009 by reportingoilandgas
Mr Vincent Annan, Executive Secretary of the Sekondi-Takoradi Chamber of Commerce, has urged the media to gather and manage information in relation to the oil industry for the benefit of the youth and all other stakeholders.
Speaking at a day’s seminar organised by the Western Regional Branch of the Ghana Journalists Association (GJA) and sponsored by Oilfield Training Centre (OTC), Mr Annan said there was the need to educate the youth on their job prospects. He said the media should support projects that aimed at educating the youth on jobs that could help them make a living, rather than putting their hope on the oil industry alone. He advised the Ghana National Petroleum Company to interact with the business community of the region and enlighten them on what it takes to do business in the Oil and Gas industry, as well as help them set up a secretariat in the Western Region to take care of the needs and concerns of the local businesses. Mr Annan also urged them to comply with the provision of “local content involvement”, where the recruitment and use of local expertise is highly recommended.
Mr. Ato Van-Ess, a trainer at OTC said the facility is a joint venture between two established oilfield service companies in the Gulf of Guinea. He said OTC provides a wide range of training courses to meet internationally accepted standards, including long term training through national vocation qualification.
Mr. Van-Ess said currently, the centre has trained two Ghanaians who are presently working on the rig. He urged the youth to make good use of their talents in order to tap the opportunities and advantages they brought, since most of the field work needed experts.
GNA
August 31, 2009 by reportingoilandgas
Centre for Petroleum Studies (CPS)-Ghana also conducts live-lecture, hands-on training courses at a training center in Accra. The majority of these courses are for field-level employees. Other courses are for those who do not work in the field but require knowledge of it.
The CPS-Ghana mission is to ensure its continued value to the energy industry by providing relevant, cost-efficient training and training materials. To do this, CPS-Ghana has regular input from an advisory board of individuals with years of experience in the industry. Although CPS-Ghana receives valuable support from The University of Texas at Austin, its operational funding comes solely from the course fees and sales of materials.
visit http://cps-ghana.com/home for more information
August 3, 2009 by reportingoilandgas
The country will produce 240,000 barrels of oil and 240,000 million standard cubic feet of gas per day under the second phase of the Jubilee Field project which is expected to commence in 2013, the Deputy Minister of Energy, Dr Kwabena Donkor, has disclosed.
According to him, “the appraisals so far conducted indicate that the Jubilee Field contains expected recoverable reserves of about 800 million barrels of light crude, with an upside potential of about three billion barrels”.
Dr Donkor, who made this known when he opened a two-day seminar on oil and gas for youth activists in Accra last Saturday, said there were greater prospects for the discovery of more oil.
The event, which was on the theme, “Oil and Gas Exploration in Ghana: Opportunities and Threats for the Youth”, was organised by the Youth Network for Human Rights and Democracy and the Friedrich Ebert Stiftung (FES).
Dr Donkor said under Phase One of the Jubilee Field project, 120,000 barrels of oil and 120,000 million standard cubic feet of dry gas per day would be produced next year.
He said the discovery of oil and gas in commercial quantities provided the country an immense opportunity to effectively improve its economy, for which reason all sectors of the economy were positioning themselves for the take-off into the new economic horizon created by the oil and gas discoveries.
“There are many who are sceptical and are asking whether the oil and gas find will be a curse for Ghana, as it has been the case in some African countries. Whether the oil and gas discoveries will be a curse or a blessing will depend on the collective will of the people of Ghana,” he said.
Dr Donkor said with the discoveries, a number of opportunities were knocking at the doors of the youth at the various stages of the oil and gas industry in the upstream, midstream and downstream activities.
These, he said, were drilling services, production maintenance service, geological services, engineering, fabrication and construction.
In addition, he said, opportunities existed in sectors such as insurance, food and beverages, transportation, health and safety, banking and financial services, as well as seismic.
He said it was, therefore, up to the youth to take advantage of the opportunities and urged educational institutions to position themselves by introducing programmers that had relevance to the market being created by the oil and gas find.
He said as a result of the oil threats, the government, on coming into office, withdrew the Petroleum Bill from Parliament for further review and broader stockholder participation before remission to Parliament.
“Though the production horizon of the oil in the Jubilee Field may be short (20 years), the ministry is leaving no stone unturned in ensuring that the necessary legislation and institutions are put in place to ensure that the benefits of the oil find in our time will also extend to those yet unborn,” Dr Donkor emphasised.
The Executive Director of the Youth Network for Human Rights and Democracy, Mr Prosper Hoetu, said the organization was a youth-oriented one committed to building the capacities of young people for good governance, peace building and conflict prevention towards consolidating democracy in the country.
He said the country’s discovery of oil and gas in commercial quantities came as good news in the midst of its socio-economic challenges, saying that when they were managed properly, oil and gas could be a major source of socio-economic transformation.
The Programmes Co-ordinator of the FES, Mr Danaa Nantogmah, said while oil discovery had been regarded as a blessing in Africa “it is often associated with the resource curse phenomenon”.
The objective of the seminar, he said, was to provide basic knowledge and understanding of the emerging oil and gas industry.
Mr Nantogmah expressed the hope that the seminar would provide a platform for youth leaders and activists to devise strategies to effectively engage the government and other stakeholders in developing and implementing a national oil and gas policy that would safeguard the environment and prevent political corruption and violent conflict.
Source: Daily Graphic
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