President Akufo-Addo yesterday turned the valves of the newly acquired Floating Production Storage and Offloading (FPSO) vessel named after former President John Agyekum Kufuor, at the Sankofa Oil and Gas Fields, Offshore Cape Three Points (OCTP) in the Western Region to commence the production of more crude oil and natural gas.
With that, he believes a new dawn beckons that would possibly lead to a significant reduction in electricity tariffs to stimulate development.
“With the addition of the production from the OCTP to those of the Tweneboa, Enyenra, Ntomme (TEN) and Jubilee fields, we are optimistic that our beloved nation will enhance significantly its gas supply for our domestic power generation,” he said during the launch of FPSO John Agyekum Kufuor in Takoradi yesterday.
That said, he indicated that government was working through the Ministry of Energy, Petroleum Commission and the Ghana National Petroleum Corporation (GNPC), with other licensees and contractors, to ensure that the country’s petroleum resources are exploited in a sustainable manner for the benefit of Ghanaians.
“The need for creative thinking to leverage our oil and gas production for national development is a charge for us to keep – and we must not fail our people,” he added.
Determination
President Akuto-Addo therefore stressed his government’s determination to intensify efforts towards the discovery of more oil and gas onshore in the Volta Basin of the Volta Region.
He was particularly delighted at the commitment of the GNPC to find more oil and gas in the Volta Basin, describing it as a bold step, stressing the belief that that would make Ghana the oil and gas hub in the West African sub-region.
“My government is totally committed to giving the Chief Executive Officer of GNPC and his team all the support they need to make this happen,” he assured.
The president recalled with nostalgia during the 2000 electioneering campaign when then candidate John Agyekum Kufuor told Ghanaians that if given the nod, his government would focus on discovering oil in commercial quantities; and was able to fulfill the promise.
“I believe God will be on our side and once again the new administration of the New Patriotic Party (NPP) will strike more oil and gas. President Kufuor made it offshore but the focus now is to explore opportunities onshore,” Nana Addo added.
It is estimated that gas from OCTP would boost power generation by some 1,000 megawatts enough to ensure stable supply electricity.
Expectation
The Sankofa field forms the first phase of the $7.9 billion OCTP, which is expected to also deliver up to 180 million cubic feet of natural gas per day by the end of next year – more than double domestic gas supply.
ENI, an Italian oil company, holds a 44.44 percent stake in OCTP, representing the largest foreign direct investment in Ghana’s history.
Trading company Vitol holds 35.56 percent while state oil company (Ghana National Petroleum Corporation) has a combined carried and participating interest of 20 percent.
President Akufo-Addo was hopeful the OCTP would help facilitate rapid economic growth in Ghana, which also produces gold and cocoa.
Ghana already produces oil from two major fields, including the country’s flagship Jubilee block which came on stream in late 2010 and TEN, which was also commissioned in 2016.
The president revealed that the approval for the award of the contract for the seismic survey in the Volta Basin would be given soon.
With Sankofa coming on stream, he was more than confident that it would ensure reliable and affordable clean energy to support economic activities and keep the country on the right path to growth.
He charged the ENI group and its partners to take the necessary steps to ensure that their activities are conducted in a safe and prudent manner to save lives, property and the environment.
President Akufo-Addo commended former Presidents John Mahama and John Jerry Rawlings for their efforts in ensuring the success of the Sankofa Project and the establishment of the GNPC respectively.
Hope
On his part, Chief Executive Officer (CEO) of GNPC, Dr K.K Sarpong, was hopeful that with the commencement of production at the Sankofa fields, the first gas would be delivered in the first quarter of next year.
He indicated that GNPC was leading the operation ‘Find Oil in the Volta Basin,’ adding that in the next 18 months more exploration activities would take place in the area in a quest to discover hydrocarbon in the basin.
Western Regional Minister, Dr Kweku Afriyie, commended the ENI Group and its partners for the excellent collaboration to ensure the timely commencement of the project.
He indicated that not only had the oil and gas projects created jobs directly for the people in the region, but had also brought in its wake other ancillary industries, as well as infrastructure development in the oil enclaves, among others.
Dr Kweku Afriyie reiterated the commitment of the Regional Coordinating Council and the Regional Security Council to sustaining the peaceful atmosphere prevailing in the region and also supporting all ongoing and future projects.
Claudio Descalzi, CEO of ENI, pointed out that the Sankofa project was completed three months ahead of schedule.
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