Gov’t nears deal with three IOCs to boost oil reserves


Government is expected to secure petroleum agreements with three International Oil Companies (IOCs) at the turn of the year, aimed at developing hydrocarbon and production to boost the country’s petroleum reserves, a parliamentary report has revealed.

According to the report of the Committee on Mines and Energy on the Annual Budget Estimates of the Ministry of Energy for the 2023 financial year, officials of the Ministry of Energy informed the committee that the Ghana Negotiation Team (GNT) continued negotiations with three IOCs in 2022 towards potential petroleum agreements.

The percentage levels of completion of the petroleum agreements are China National Offshore Oil Corporation (CNOOC) 95percent; ENI, 90percent and KOKA, 95percent.

This is aimed at enhancing hydrocarbon and production to increase the country’s petroleum reserves.

According to data, hydrocarbons are the most abundant, affordable and reliable energy source that are fueling most of the planet’s power and electricity needs.

The introduction of petroleum hydrocarbons into a pristine environment immediately changes the nature of that environment, resulting in reduced ecosystem functionality.

Presenting the report for the approval GHc917m for the Ministry of Energy’s budget, the chairman of the committee, Samuel Atta Akyea, lauded government for its commitment to push through nuclear energy as far as the country’s energy transition is concerned.

He, however, urged government “to pay attention to revamping the power sector and hydrocarbon.”

The report also disclosed that for next year, the ministry plans to produce oil, and export gas daily at an average of 31.1million barrels and 35.2 billion cubic feet of gas respectively from Greater Jubilee Field.

It will also achieve a daily oil production and gas export from the TEN Field at 9.7 million barrels and 62.4billion cubic feet of gas respectively as well as implement the recommendations of the revised gas master plan under upstream activities of the petroleum sub-sector development.

Gas price reset

The ministry told parliament that the Jubilee Field post-foundation volume of 200billion cubic feet of gas will be exhausted by the end of 2022.

In view of this, GNPC commenced talks with the Jubilee Partners to negotiate a post-foundation Gas Sale Agreement to govern gas offtake by the state after 2022.

Again, the partners have submitted a proposal for a combined Gas Sales Agreement for delivery of 200million standard cubic feet of gas from both Jubilee and TEN fields.

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