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Business News of Wednesday, 20 October 2021

Source: thefinderonline.com

GNPC-Aker deal to add 200,000 bpd as first oil pour is expected in 2024 - Dr Sarpong

The Ghana National Petroleum Corporation (GNPC) The Ghana National Petroleum Corporation (GNPC)

The proposed deal between Ghana National Petroleum Corporation (GNPC), Aker Energy and AGM Petroleum Ghana Limited is expected to add 200,000 barrels of oil per day to Ghana’s oil production.

10-year development plan in 4 phases

The four-phased development of Deep Water Tano/Cape Three Points (DWT/CTP) bloc and the South Deep Water Tano Block (SDWT) blocs will span 10 years.

If nothing disrupts current plans, the first oil is expected in 2024.

Pecan Phase 1A to produce 40,000 barrels

Pecan Phase 1A, which is the first stage of the development, is expected to pour first oil of 40,000 barrels per by 2024.

Pecan Phase 1B to produce 40,000 barrels

Pecan Phase 1B, which is also part of the first phase of development, is also expected to pour first oil of 40,000 barrels per day in 2017 and increase production 80,000 barrels per day.

Nyankom to produce 60,000 barrels

The second phase will be developed at Nyankom, which will be fast-tracked and completed in 2027 to produce 60,000 barrels per day to increase production to 140,000 barrels of oil per day.

Pecan Phase 2 to produce 60,000 barrels

Pecan Phase 2 will be the final development and is expected to be completed in 2030 to add 60,000 barrels of oil per day, which will increase total production to 200,000 barrels of oil per day.

Arresting decline in Ghana’s oil production

The Chief Executive Officer (CEO) of GNPC, Dr Kofi Kodua Sarpong, told media practitioners that the developments would arrest the decline in Ghana’s oil production which started last year.

Drop in total oil production

Total production dropped from 195,722 barrels per day in 2018 to 182,855 in 2020, and the figure is projected to decline further to 154,050 this year, representing 41,672 barrels per day decline.

Fields Jubilee - Production to decline to 73, 050 barrels

For the individual fields, Jubilee production started declining in 2016 from 102, 130 in 2015 to a projected figure of 73, 050 this year.

TEN fields - Production to decline to 38,500 barrels

For Tweneboa, Enyenra, Ntomme (TEN) fields, production started declining in 2019 from 64, 548 to projected 38,500 this year.

Sankofa and Gye Nyame - Production to decline to 42,500

Production from Sankofa and Gye Nyame (SGN) also started declining in 2021 from 51,000 to a projected figure of 42,500.

Total production can decline to 10,000 barrels by 2036

Dr Sarpong explained that oil production going forward is expected to decline to as low as less than 10,000 barrels of oil per day by 2036 if nothing is done.

Causes of the decline

According to him, the decline is attributable to technical challenges, no new field development prior to 2017, as well as lack of investment for new developments due to energy transition.


Unfairness of energy transition push

The GNPC CEO noted that advanced countries developed their economies using profits from oil and gas, and now they are investing in renewables using profits from oil and gas.

Advanced countries are focused on persuading emerging oil and gas producers to leave their newly found hydrocarbons stranded and borrow from them to develop renewable energy.

Developing countries and renewables

Dr Sarpong explained that developing countries contribute only three percent to global carbon emissions, and should, therefore, not be pressurised into renewables.


He is convinced that reasonably high prices for hydrocarbons would prevail and producing countries stand to gain increased revenue for development.

It has been projected that demand growth will increase by five million barrels by 2030 while reduction in demand from electric cars will reduce demand by four million barrels by 2030.

Dr Sarpong said the demand lost to electric cars is more than offset by demand growth from Asia.

He identified lack of capital to invest and lack of operating capacity of national oil companies as implications of energy transition for emerging oil-producing countries with stranded hydrocarbon resources.

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