Ghana is expected to see a surge in oil and gas investments
in the coming years, 2023-2027 starting 17 oil and gas projects.
The country will see the development of three offshore
fields, nine midstream projects, and two refineries and three petrochemical processing
As one of Africa’s leading and fastest-growing hydrocarbons
producers, offshore field developments in the West African country include
Phase One of the Pecan Conventional Oilfield and the start of production of the
Jubilee South East field and Ntomme Far West Development.
In the upstream sector, Ghana will concentrate on three
offshore fields. The Pecan Conventional Oilfield’s Phase One, valued at $1.5
billion, is expected to commence production in 2025 with a capacity of 82,500
barrels per day. The project is operated by exploration and production company
Aker Energy Ghana Ltd. (50%); petroleum corporation Lukoil (38%); Ghana’s state-owned
Ghana National Petroleum Corporation (GNPC) (10%); and transport company Bulk
Ship & Trade (2%).
The Jubilee South East field, located in the Cape Three
Points concession area, will produce around 37,000 barrels per day by the end
of 2023. It is operated by oil and gas exploration company Tullow Oil (38.98%),
deepwater exploration and production company Kosmos Energy (38.61%); the GNPC
(19.69%); and South Africa’s National Oil Company (NOC) PetroSA (2.72%).
Additionally, the Ntomme Far West Development is undergoing
a pre-feasibility analysis, and drilling for a proposed well is scheduled to
begin this year.
Midstream Developments Make Progress
The midstream sector in Ghana will witness the development
of various projects. Notable among them are the Tema Floating Liquefied Natural
Gas (FLNG) Plant, designed to produce 83 billion cubic feet of LNG, and the
Tema VI Liquids Storage Terminal, which will have a capacity of approximately
1.9 billion barrels of oil.
The country will also see the establishment of oil storage
facilities in Dixcove and the Upper West Region, along with the construction of
the Tema-Akosombo II and Tema Pipelines.
Ghana’s western regions will feature the development of the
$300 million oil tank farm near the village of Dixcove, projected to boast a
capacity of up to 62,000 cubic meters of petroleum products, while the state
agency Bulk Oil Storage and Transportation Company has announced the
development of an oil storage facility in the Upper West Region town of Wa.
Both facilities are due to commence operations in 2024.
Major pipelines due to come online during the outlook period
include the 70km Tema-Akosombo II Pipeline and 6km Tema Pipeline. Due to
complete construction in 2023, and with a total cost of $89 million,
improvement of Ghana’s midstream sector will contribute significantly towards
the West African country’s ambitious target of becoming a petroleum hub for the
Downstream Projects Improve Refining Capacity
In the downstream sector, Ghana aims to enhance its refining
capacity. The Prestea gas processing plant, valued at $210 million, will have a
capacity of 200 million cubic feet per day.
Oil Refinery Ltd., a Ghanaian company, plans to construct two refineries near
the Ningo-Prampram district, with capacities of 100 million and 5 million
barrels per day, respectively.
These projects reflect Ghana’s ambitions to position itself
as a leading player in Africa’s hydrocarbons industry and establish a petroleum
hub in the region.