President Mahama Announces Nya Gyidie Offshore Oil Discovery in Ghana

President John Dramani Mahama of Ghana has announced a significant offshore hydrocarbon discovery, named Nya Gyidie, in the country's Deepwater Cape Three Points contract area. The discovery was made by Planet One Oil and Gas Limited in partnership with GOIL Upstream Limited and the Ghana National Petroleum Corporation (GNPC) at the Nya Gyidie 9-1X well. This find is a major milestone in efforts to revitalize Ghana's upstream petroleum sector and attract fresh investment.

The Nya Gyidie discovery represents Ghana's first successful test of a Cenomanian-Turonian carbonate-clay formation as a primary exploration target, with the Albian formation serving as a secondary objective. President Mahama described the name, which means "Have Faith," as aptly reflecting the confidence demonstrated by the partners in Ghana's petroleum prospects and the country's renewed exploration agenda. He congratulated Planet One and its partners on the achievement, calling it an important milestone in Ghana's efforts to accelerate responsible exploration.

President Mahama also announced a recovery in crude oil production, which has risen from about 88,000 barrels per day to more than 120,000 barrels per day. He attributed the earlier decline in production partly to global developments associated with the transition to cleaner energy and acknowledged that poor governance and regulatory inconsistencies had also weakened investor confidence. This resulted in the withdrawal of major industry players and a slowdown in investment.

The President disclosed that Jubilee partners had committed $2 billion, while partners in the Offshore Cape Three Points project had pledged $1.5 billion towards new wells, subsea infrastructure, and production facility expansions. These investments are expected to sustain oil production, increase natural gas output, and strengthen Ghana's long-term petroleum prospects. At Jubilee, the investment is expected to sustain crude oil production and increase gas output.

President Mahama further indicated that the expected reduction in Jubilee gas prices would generate estimated savings of about $300 million for Ghana. Ghana currently produces approximately 400 million standard cubic feet of natural gas daily, a figure expected to approach 500 million standard cubic feet following the upgrade of the Offshore Cape Three Points non-associated gas facilities.

Under a renegotiated gas sales agreement with ENI, the average gas price is expected to decrease. President Mahama called on the Petroleum Commission to ensure that operators meet their exploration commitments and translate the country's petroleum resources into jobs, investment, and economic opportunities for Ghanaians. He emphasized the importance of responsible exploration and the need for a more predictable investment environment.

The President's announcement highlights the progress made in Ghana's petroleum sector, with a focus on attracting fresh investment and increasing production. The Nya Gyidie discovery and the recovery in crude oil production are significant developments in the country's efforts to revitalize its upstream petroleum sector. With the expected investments and upgrades, Ghana's petroleum prospects are expected to strengthen, generating economic opportunities for the country.

Key points

• President Mahama announces new offshore oil discovery, Nya Gyidie, in Ghana's Deepwater Cape Three Points contract area.
• Crude oil production in Ghana recovers to over 120,000 barrels per day.
• Investments of $2 billion and $1.5 billion are pledged by Jubilee and Offshore Cape Three Points partners, respectively.