Photo credit: Tullow oil
Ghana is considering selling more oil and gas exploration rights to boost production, according to Reuters, citing a government official. The country has been looking for investors for its oil and gas industries from nations such as the US, China, and India.
Ghana, which is going through its worst financial crisis in decades, hopes to generate additional revenue from increased production to fund its energy transition initiatives.
In an interview with the publication, Ghana Energy Ministry Deputy Minister Andrew Kofi Egyapa Mercer said: “For any investor to look at a temporary hiccup as a basis for decisions in Ghana I think would be making a mistake.”
“Post Russia, we keep all recognise the need for energy security. And it is important that we live not caught pants down,” the minister added.
Speaking on the sidelines of a conference during Singapore International Energy Week, Mercer said that Ghana is selling blocks of gas and oil, including both new acreages and areas that ExxonMobil has given up.
“The plan really is that we do not intend to get any of our assets stranded. (As) all the commitments that the West with respect to the Paris agreements have never been met, so it is important for us to fund our own transition or at least a significant part of it,” Mercer told the publication.
According to the minister, Ghana’s current production stands at 160,000 to 170,000 barrels per day (bopd) of crude oil and nearly 325 million standard cubic feet per day (mscfd) of natural gas.
He said that following several upgrade projects, output from Sankofa gas field increased to 235mscfd from 210mscfd.
“We are looking to get to 250mscfd,” Mercer said, adding that expansion plan for Sankofa is expected to be submitted for approval in early 2024.
In addition, according to Mercer, African Finance Corp has secured nod to proceed with development of the Pecan field project, which is expected to produce 80,000bopd.
Following the final investment decision, production from Pecan is expected to begin in 2025-2026.