The Ghana National Petroleum Corporation (GNPC) has announced a significant increase in crude oil production from the Jubilee field, which could potentially reverse the decline in Ghana's crude oil production. According to Mr. Hamis Ussif, Deputy Chief Executive of GNPC, the Jubilee field is now producing over 80,000 barrels per day, compared to the projected 40,000 barrels per day two years ago. This increase is attributed to efforts by GNPC and its partners.
The increase in Jubilee production comes as concerns over declining crude oil output from Ghana's mature petroleum fields continue. Mr. Ussif made these remarks at a Technical Consultative Workshop organised by the Public Interest Accountability Committee (PIAC) on building a resilient gas economy. The workshop aimed to ensure an efficient gas value chain and discussed strategies for collaborative efforts.
GNPC and its partners are undertaking investments to strengthen the upstream petroleum sector and increase oil and gas production. About $3.5 billion in upstream investments have been announced, which is expected to increase gas supply to the country. These investments will support efforts to strengthen Ghana's petroleum production base and ensure adequate gas supply for power generation and industrial activities.
The Director of Operations at the Petroleum Commission, Mr. Henry Mensah, highlighted the strategic importance of Ghana's gas resources for energy security, industrial growth, and power generation. He noted that natural gas has helped reduce the country's reliance on expensive imported liquid fuels, delivering savings to the economy. Mr. Mensah expects the technical consultations to generate recommendations for informing government policy and the future direction of the gas sector.
However, Dr. Kwame Sarkodie of the Department of Petroleum Engineering at the Kwame Nkrumah University of Science and Technology (KNUST) cautioned that Ghana's petroleum and gas sector faces significant production and supply challenges. Ghana's mature oil fields, including Jubilee, TEN, and Sankofa-Gye Nyame, are experiencing reservoir decline, making the management of associated gas pressures and delivery increasingly complex.
Dr. Sarkodie also noted that Ghana has lost significant economic value through gas flaring, with approximately 28.5 million units of gas, representing 10.4 per cent of raw gas produced, flared in a single year. He estimated the value of the lost energy at about $170 million and called for the elimination of routine gas flaring as both an environmental and economic necessity.
Dr. Sarkodie proposed measures to address the financial challenges affecting the gas and power sectors, including ring-fenced payment structures for gas processing and transportation utilities. He also called for greater commercial clarity to encourage upstream operators to invest in non-associated gas exploration and production and the expansion of Ghana's gas transportation network to support industrial development.
Key points
- The Jubilee field is now producing over 80,000 barrels per day.
- GNPC and its partners have announced $3.5 billion in upstream investments.
- Ghana's gas resources have become strategically important for energy security, industrial growth, and power generation.
