Ghana Announces New Offshore Oil Discovery near Jethro-1X Well

President John Dramani Mahama has announced a significant offshore oil discovery by Planet One Oil and Gas Limited and its partners in the Deepwater Cape Three Points Contract Area. The discovery was made near the Jethro-1X well and involves Tullow Upstream Limited and the Ghana National Petroleum Corporation (GNPC). This development marks an important milestone for Ghana's oil and gas industry, according to President Mahama.

The discovery is notable for being Ghana's first successful test of a Cenomanian-Turonian carbonate play as the primary exploration target. The well also targeted the Albion formation as a secondary objective. According to President Mahama, the drilling fulfilled an exploration commitment and demonstrated investors' confidence in Ghana and the direction of the government's petroleum agenda.

With this new discovery, the priority now is to speed up responsible exploration and develop the infrastructure needed to produce the country's oil and gas resources. President Mahama emphasized the importance of increasing domestic refining and gas processing capacity to reduce dependence on imported fuel. To achieve this, work has started on the construction of a second gas processing facility, known as GPB2.

The new gas processing facility is expected to save Ghana about $1 billion annually by reducing the country's reliance on imported liquid fuels for power generation. President Mahama stressed that securing investment in oil and gas exploration is necessary to guarantee a reliable supply of natural gas for the country's energy needs.

On local content, President Mahama emphasized that the success of Ghana's petroleum industry should be measured by the opportunities it creates for local businesses and young people. He called on Ghanaian companies to build their capacity and meet the standards required to compete for major contracts in the industry.

President Mahama also urged banks and other financial institutions to support credible local suppliers facing difficulties in securing funds to undertake bigger projects. He encouraged universities, technical institutions, and professional bodies to work closely with industry players to ensure that training programs meet the skills requirements of the petroleum sector.

The government is seeking to attract fresh investment, increase oil and gas production, and strengthen Ghana's position in the petroleum industry. Since oil was first discovered in the Jubilee Field in 2007, the country has recorded more than 30 offshore discoveries, with commercial production beginning in December 2010. However, oil production, which peaked at about 88,000 barrels per day in 2019, later declined.

Key points

• The new offshore oil discovery was made by Planet One Oil and Gas Limited and its partners in the Deepwater Cape Three Points Contract Area.
• The discovery is Ghana's first successful test of a Cenomanian-Turonian carbonate play as the primary exploration target.
• The government aims to increase domestic refining and gas processing capacity to reduce dependence on imported fuel.