The West African nation of Ghana is due to pump its first oil today following the discovery of the offshore Jubilee Field three years ago.
A consortium led by UK-based Tullow Oil hopes to produce 55,000 barrels per day increasing to 120,000 barrels in six months, with Ghana expected to earn around $400 million (£254 million) in the first year. Ghana’s government has forecast a boost to the country’s economic growth rate of up to seven per cent in the space of a year—from five per cent to 12 per cent.
Production is eventually expected to bring the country $1 billion per year.
The Jubilee Field is estimated to hold 1.5 billion barrels of oil. An additional offshore field, Owo, was also discovered in September, which is believed to hold another 1.4 billion barrels.
Commenting today, Aidan Heavey, Tullow’s chief executive, said:"History will be made today and I am very proud to be part of it. First Oil from the Jubilee field is a wonderful occasion for Ghana, its Government and People, the Jubilee Partners and Tullow. It is the culmination of a lot of dedication and hard work from a world-class team on a world-class field.
“So many people deserve recognition and thanks today, my personal thanks go in particular to the Government of Ghana. Their support and commitment to this project helped the Jubilee Partners ensure that First Oil for Ghana became a reality. Congratulations to everyone involved."
The oil at Jubilee is due to start flowing following a ceremony attended by President John Atta Mills, who will press a symbolic buttonto officially commence full-scale production of oil in commercial quantities.
Ghana’s government is currently working to put regulatory measures and an oil revenue bill in place.
Tullow Oil has a 34.7 per cent stake in the Jubilee Field. Other partners include Anadarko Petroleum (23.49 per cent), Kosmos Energy (23.49 per cent), the Ghana National Petroleum Company (13.75 per cent), Sabre Oil and Gas (2.81 per cent), and the EO Group (1.75 per cent).
Ghana's estimated three to five billion barrels of oil reserves are about a third of those in nearby Nigeria.
