Gov’t nears deal with three IOCs to boost petroleum reserves as parliament okays GHS 917m for Energy Ministry for 2023
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 International Oil Companies (IOCs) In 2022 towards potential Petroleum Agreements.
The percentage levels of completion of the Petroleum Agreements are China National Offshore Oil Corporation (CNOOC) 95 percent, ENI (90percent) and KOKA (95percent). This is aimed at enhancing hydrocarbon and production to increase the country’s petroleum reserves.
Hydrocarbons, available data indicates are the most abundant, affordable and reliable energy source, fueling most of the planet’s power and electricity needs, oil and gas hydrocarbons also provide value in another very significant way.
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, achieve average a daily oil production and gas export from the TEN Field at 9.7 million barrels and 62.4billion cubic feet of gas respectively, implement the recommendations of the revised gas master plan under upstream activities of the petroleum sub-sector development.
For the renewable and alternative energy development, the ministry intends to distribute 5,000 units of solar lanterns to rural and peri-urban communities at subsidized price as part of efforts to promote clean lighting source, manufacture and distribute 164,663 cooking stoves and continue implementation of the Ghana Scaling-Up Renewable Energy Project (SREP) by providing mini grids and net metering with solar PV.
Under Nuclear Power, the ministry will commence the process of acquisition of site for the development of the first Nuclear Power Plant and continue the engagement with the approved vendors for the preferred nuclear technology.
Further, the ministry plans to expand the LPG for Household Use (LPG4H) Module to some 40,000 people in sixty district assemblies, optimize existing infrastructure and streamline development in the petroleum downstream sector through the redistribution hub project and commence phase 1 of the Petroleum Hub Development project under the downstream sector.
Gas price reset
The report also noted that 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.
