Ghana’s oil production to decline after peak level

Ghana’s oil production from the Jubilee fields Phase 1which is expected to reach its plateau stage of production at 120,000 barrels of oil per day (bopd) will dip, according to an official of Tullow Ghana.

Dr. Toni Aubynn, Head of Tullow Ghana Corporate Affairs, however said new oil discoveries will keep production levels up.

The Jubilee oil fields which is currently producing about 70,000 to 80,000 bopd is expected to start producing about 120,000 bopd by the end of July this year, at its plateau level.

Dr. Aubynn told ghanabusinessnews.com on the sidelines at a recently held meeting in Accra organized by the Rotaract Club of Adentan that “After oil production reaches its peak of 120,000 barrels per day, it will slide down but the new discoveries at the Jubilee Phase 1A will the keep the level of production.”

After all the other wells such as the Enyenra/Tweneboa, Mahogany among others are developed and commercial production starts, that will sustain production.

The World Bank estimates that Ghana will enjoy the plateau from Phase 1 for five years from mid-2011 to mid-2016 and decline thereafter with field life of 20 years.

In a book prepared by the Kumasi Institute of Technology and Environment (KITE) titled “Ghana’s Emerging Petroleum Industry: What Stakeholders need to know” it indicates that “Phase 1A will probably start in 2013 and has been described as possibly expanding the daily production of oil and gas from the Jubilee field to about 250,000 barrels at peak and 250 million cubic feet of gas respectively and a field life of 25-30 years.

According to KITE, if all future phases of the field’s development are carried out, oil production from the Jubilee field will peak at 114,000 barrels per day for up to three years under Phase 1.

However, peak production output could be prolonged if and when new phases of the Jubilee field are developed, it says.

As at the end of 2010, oil production from the Jubilee field has increased to over 70,000 bopd from five wells following first oil production on December 15, 2010.

Dr Aubynn told ghanabusinessnews.com that a new FPSO will be acquired for the Jubilee Phase 1A in order to not disrupt the FPSO Kwame Nkrumah at the Jubilee Phase 1.

He said investment for the production of oil in Ghana is close to $4 billion and that it costs $1 million dollars on an oil rig a day in drilling for oil.

 

By Ekow Quandzie

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