Oil and gas sector

by MMC
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The most effective way to market Africa’s oil and gas resources is through a rapid and effective partnership approach, as this West African country has proven.

The African oil and gas sector is in an exciting phase of its development, with a shift in global energy policy, new discoveries announced on the continent and the sector itself being reinvented to expand its renewable energy and development components community.

These and other trends are leading to an ongoing restructuring of the sector, with the exit of some well-established multinational oil and gas companies. the continentwhile smaller, more nimble operators continue to do business here.

In Ghana, the upstream oil and gas industry emerged primarily in 2006, when the first offshore discoveries were made.

The first permit – the Jubilee field, at a depth of 1,100m – is still in operation today and has helped to build confidence in the Ghanaian oil and gas sector, as well as the future potential of the African industry in his outfit. It also provided lessons for governments and operators seeking to develop opportunities in the African upstream in the future.

Pragmatic partners

From the first offshore discoveries, the Ghanaian government wanted to position itself as a pragmatic and reasonable partner, ready to do what was necessary to put new deposits into production. Following the first discoveries in 2007, the concession operators were appointed within a year.

Since Jubilee would be home to Ghana’s first oil production facility, many political and infrastructural developments were occurring for the first time. However, Ghanaian regulators understood that a steep learning curve should not be a limitation.

To work efficiently

Particularly in new territories of exploration, the eyes of the world are glued to the pace of pioneering developments. For businesses comparing options in different parts of the world, a government that is quick and efficient in developing policies, adopting regulations and evaluating project plans will always have the advantage over its competitors.

This was true with Ghana.

Ghana’s Department of Energy approved Phase 1 of the development plan and unitization agreement for the Jubilee field in July 2009, and first oil was obtained in November 2010 – just 40 months after discovery initial of the well. The speed of development at that time was the fastest ever achieved in large-scale deep water.

The development involved the construction of a floating production and offtake vessel (FPSO), making it a relatively complex project. However, solid fundamentals were put in place early on and the sector remains very lucrative today. Recoverable reserves are estimated at more than 370 million barrels, with a potential increase of 1.8 billion barrels.

Develop relationships

It is sometimes useful to view early projects as the foundation of a much larger vision. While developing a launch can be lucrative, the potential for a long-term relationship is much greater – for all parties.

The Government of Ghana has demonstrated continued commitment to the evolution of its upstream resource infrastructure. This aligns with the long-term vision of a growing cohort of agile oil and gas independents. Subsequently, the Ghanaian findings were also quickly brought into production, building on the healthy relationships forged during initial development.

At the TEN field, discovered in 2013, first oil was produced on time and on budget, within three years of approval of the development plan.

Investing for the long term

The effective and pragmatic development of its oil and gas resources, with an open partnership approach, has enabled Ghana to create an energy industry that now contributes 3.7 percent to the country’s gross domestic product (GDP), according to THE 2022 EITI Reports on Mining, Oil and Gasthanks to a total crude oil production of 6.9 million barrels and 88,000 million cubic feet of natural gas, adding $666.4 million to the fiscus in terms of total oil revenue.

The country is now ready to launch as many as 17 oil and gas projects over the next four years, including new offshore fields, refineries and petrochemical processing facilities.

These figures demonstrate how African oil discoveries in border territories can become the engine of new economic sectors, sectors that can play a significant role in the development of the host country and the African region as a whole.

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