ACCRA, Ghana, September 1, 2017/APO/ — Oil and gas is big business in Ghana – and it is only getting bigger! In 2007, the Jubilee oilfield was discovered, and it is containing up to three billion barrels. Since then both the oil – and gas industry has seen a tremendous growth, and is expected to keep increasing for years to come.
With an oil sector that is celebrating its first decade in Ghana, there is still a lot to be done – and a lot to be won – in this sector. The first production of oil began in 2010 when Texan firm Kosmos in collaboration with Tullow, Anadarko and the state-owned Ghana National Petroleum Company (GNPC).
As of 2017, production amounts to around 100,000 barrels of oil and 80 Mscf/d of natural gas. Recently, Ghana’s parliament passed extensive amendments to its Petroleum Revenue Management Act and the Petroleum Exploration and Production Bill that hadn’t been updated since 1984.
These amendments ensures that the management of Ghana’s oil and gas resources are more transparent than ever before. The amendments received support from across the board of stakeholders in the industry.
In addition to the now famous Jubilee field, the GPC has allowed rights to develop an additional 16 potential oilfields in Ghana, and with the highly anticipated court case set at the International Tribunal of the Law of the Sea to resolve a long standing border dispute between Ghana and Cote D’Ivoire within a couple of months, opportunities are looking good for the industry in Ghana!
Generally, Ghana is known for being the place to be for western companies in West Africa. Renowned for the low crime rates, astonishing growth rates in the later years and a well-functioning democracy, Ghana is often called one of the success stories of Sub-Saharan Africa.
With the industry being so new, there are challenges to overcome for the Ghanaian companies. Domestic companies have a quite limited experience in the field, and the technical services to the offshore operators are lacking. This could be an opportunity for Danish businesses with expertise in these fields to conquer a new market.
The local businesses are in desperate need of foreign partners with the knowhow and experience in these fields. For some portions of the oil and gas sector, at least 10% of equity will have to be held by domestic Ghanaian firms.
It seems like the industry in Ghana is searching for foreign sourced knowhow and competences. In the next couple of years joint-venture firms with local and global businesses teaming up and claiming this up and coming market for oil and gas in Ghana.
Distributed by APO on behalf of Embassy of Denmark in Ghana.