President Nana Addo Dankwa Akufo-Addo Friday commissioned First Oil from the Jubilee South East (JSE) Project.
The project, undertaken by Tullow, in collaboration with the Ghana National Petroleum Company (GNPC), Kosmos Energy, Jubilee Oil Holdings Limited, and Petro SA, is expected to increase gross Jubilee field output to more than 100,000 barrels of oil per day.
President Akufo-Addo stated during the ceremony that the success of the South East Project was aligned with the larger Jubilee field plan, which intended to increase gross production from the field’s eastern side.
He stated that the oil well would help Ghana achieve its goal of sustaining an output of more than 100,000 barrels per day by the end of the year.
“With some three hundred million (300 million) barrels of oil estimated within the Jubilee field, this triumph augments our confidence in other prospects across the nation,” he said.
The President indicated that the triumph of the JSE Project reinforced the government’s determination to encourage further investments from partners in the TEN field project.
He said the expansion would consolidate the Government’s achievements in the oi and gas sector, adding, “the TEN field, enriched with substantial gas reserves, is pivotal to our nation’s natural gas production and the stability of our power sector in the coming years.”
President Akufo-Addo stated that he was aware of discussions in the media and other forums regarding the prospect of making extensive use of Ghana’s domestically produced natural gas to satisfy the needs of the country’s power sector.
He stated that the JSE was vital for earning revenue and addressing the country’s power generation needs.
“Players in the oil and gas sector have been advocating for a commitment by Government to consider deploying more natural gas produced domestically to solve the challenges in providing sustainable electricity for individuals, households and businesses.
“I want to re-emphasize our commitment to expedite discussions and agree mutually acceptable terms for a combined gas sales agreement between Tullow, its Joint Venture Partners and Government.
“This step will pave the way for heightened success and revenue generation in the sector, fostering the use of natural gas for domestic purposes, and the creation of allied industries. Such utilisation is especially critical in meeting approximately half of our power generation requirements,” he stated.
Addressing local content and Ghanaian participation in upstream petroleum operations, President Akufo-Addo noted that the government’s position on local content was not just about supplying ancillary services to the sector but also having a stake in the resources.
“We must collectively endeavour to train our people to get to a level where they have the capacity to be able to participate fully in the industry, and our position is to strengthen all training vehicles in the various industries of the Energy sector, like the Accelerated Oil and Gas Capacity Building Programme, to ensure that Ghanaians have the relevant certification to become competitive, and play a fuller role in the industry.
“That fuller role will be most effectively anchored when we ensure Ghanaian equity participation in the upstream development of our oil and gas resources,” he stated.
With Ghana as a signatory to the Paris Agreement, which requires the country to reduce carbon dioxide emission levels, President Akufo-Addo said it had become imperative for Ghana to develop plans and strategies for the creation of a net-zero energy sector.
“However, as I have reiterated on previous occasions, whilst working hard to combat the effects of climate change, it is also important to protect our development by making sure that our oil reserves do not become stranded assets, but, rather, a catalyst for our economic growth. Our position remains unchanged,” he added.
The President reaffirmed that Ghana had everything going for it as an investment destination: a stable political system, a robust legal framework, a viable fiscal regime, a good telecommunications infrastructure, a dedicated, skilled labour force, and warm, hospitable people.
“I wish to assure the investor community of our continued support to ensure that their investments are safe in law and in fact, and that they can flourish in our country within the context of our relevant laws. Our doors are always open for conversations on your presence in Ghana, and I hope the good, warm relations we have fostered over the years will continue to endure in the times ahead,” he added.
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