The upstream petroleum sector is gearing up to bring on-stream its fourth oil field, the Pecan Oil Field, with peak production expected to reach up to 80,000 barrels of oil per day, according to the Chief Executive of Petroleum Commission, Egbert Faibille.
Although Mr. Faibille did not give a timeline, he stated that appraisal work is nearing completion, which will pave the way for development and production. The field is considered a vital addition to counterbalance declining crude oil production, which has decreased for the fourth consecutive year.
The Public Interest and Accountability Committee (PIAC), in its 2023 annual report, revealed that domestic crude oil production has experienced a significant decline – dropping to 48.25 million barrels in 2023 from a peak of 71.44 million barrels in 2019.
This represents an annual average decline rate of 9.2 percent over the past four years, and a 7 percent decrease from the 2022 figure of 51.7 million barrels.
In 2023, production from the country’s three major oil fields – Jubilee, Tweneboa-Enyenra-Ntomme (TEN) and Sankofa Gye Nyame (SGN) – contributed to the total output with Jubilee leading the charge.
Specifically, Jubilee Field produced 30,444,217 barrels and accounted for 63 percent of total production while the TEN Field contributed 6,716,278 barrels, or 14 percent, and the SGN Field added 11,086,541 barrels representing 23 percent.
Speaking at the ‘Ghana Oil and Gas Conference 2024’ opening in Accra, Mr. Faibille emphasised the Pecan project’s significance in boosting the sector, stating: “Another source of growth to stimulate the industry is developing existing discoveries, some of which are currently undergoing appraisals to ascertain commerciality”.
He further disclosed that the Petroleum Commission – the regulatory body overseeing the upstream petroleum industry – is working closely with ENI on the appraisal of discoveries such as Akoma and Eban to expedite their development.
In addition, he said, Springfield is preparing to appraise the Afina discovery.
“The ultimate effect of these developments will be an increase in production volumes as well as heightened levels of activity, thus boosting local content,” Mr. Faibille added.
He also noted the ongoing efforts to position Ghana as a favourable destination for oil and gas investments through the ‘Ghana Oil and Gas Roadshows’. These efforts, he said, are beginning to bear fruit with increased interest from exploration and production (E&P) supermajors and majors, who have been visiting data-rooms and engaging in data-licencing.
Additionally, Mr. Faibille revealed that Ghana is on the verge of becoming an onshore petroleum producer as the Ghana National Petroleum Corporation (GNPC) completes data-acquisition works in the Voltaian Basin, with plans to drill its first exploratory well.
“This is the result of significant investment in data acquisition for the onshore Voltaian Basin, which has potential to be a game-changer for the local oil and gas industry,” Mr. Faibille said.
GNPC’s imminent drilling of an exploratory well marks the beginning of a new exploration frontier for Ghana’s oil and gas industry.
This year’s oil and gas conference, organized annually by the Ghana Upstream Petroleum Chamber, was held under the theme ‘Stimulating the Growth of Ghana’s Oil and Gas Industry’. The platform seeks to foster discussions around the country’s upstream petroleum operations.
In a keynote address delivered on behalf of Minister of State at the Energy Ministry, Herbert Krapa, government acknowledged the oil and gas sector’s critical role in driving national development.
He emphasised the need for robust regulatory frameworks to support growth and attract investment.
“We must ensure that our policies and laws promote industry growth and that we are competitive with other countries in attracting investments and talent,” Mr. Krapa said. “This means streamlining regulatory processes, providing clarity and certainty for investors and ensuring our competitiveness.”
The U.S. Ambassador to Ghana, Virginia Palmer, acknowledged Ghana’s journey in the oil and gas industry, noting that output has fallen due to global energy transitions. This has led to diminished oil export earnings, impacting the country’s budget revenues and ability to finance its long-term energy transition.
She also mentioned a report stating that Africa has an annual financing gap of US$400billion to achieve its sustainable development goals.
CEO-Ghana Upstream Petroleum Chamber David Ampofo also called for accelerated exploration activities.
He urged regulators to expedite the issuance of new exploration licences and promote infrastructure-led exploration to build a pipeline of development projects.
“The one issue that we believe can make all the difference is further collaboration between government agencies and international oil companies, to promote the ease of doing business and restore Ghana’s status as an attractive investment destination for upstream petroleum,” Mr. Ampofo stated.
Source: thebftonline.com