The government of Ghana has given formal approval for the Phase 1 Development Plan of the Jubilee oil field. The approval was given Monday July 13, 2009 – UK-based Tullow Oil has said in a press release copied to ghanabusinessnews.com Wednesday July 15, 2009.
According to Tullow Oil, Ghana’s Energy Minister Dr. Oteng Adjei has formally approved the Jubilee field Phase 1 Development Plan and Unitisation Agreement on behalf of the Government of Ghana.
The release indicated that the Jubilee field will be developed via a Floating, Production, Storage and Offtake vessel (FPSO) and will deliver a plateau oil rate of 120,000 bopd, water injection capacity of 230,000 bwpd and gas export and injection capacity of up to 160 mmscfd.
Work on the FPSO and subsea facilities was initiated in July 2008 and is on track to deliver first oil in the second half of 2010, it added.
The release said the Unitisation Agreement has determined the partners’ initial equity interests in the Jubilee field and provides for modification of these interests as further field data becomes available.
Tullow’s initial equity interest in the Jubilee Unit Area, which Tullow will operate, is 34.70%. Other partner interests are Kosmos Energy (23.49%), Anadarko Petroleum (23.49%), Sabre Oil & Gas (2.81%), EO Group (1.75%) and the Ghana National Petroleum Corporation (GNPC) (13.75% of which 10% is carried interest).
The Chief Operating Officer of Tullow Oil, Paul McDade, was quoted in the release as saying: “Receiving formal approval from the Government of Ghana is an important milestone for the Jubilee Phase 1 development and supports our decision to fast-track the project early in 2008. By securing rig capacity and commencing the construction and drilling phases in advance, Tullow is confident that it will deliver first oil from this deepwater project just over three years since the first discovery well was drilled.”
Oil was discovered in Ghana in commercial quantities in June 2007. The Jubilee oil field has potential resources of as much as 1.8 billion barrels, according to Tullow.
It has 17 wells and it is said to be the largest to be discovered in West Africa in the last 10 to 15 years.
By Emmanuel K. Dogbevi