Ghana increases oil production – pumps crude from new offshore fields

It is hoped that new oil production will jump start the economy

Ghana began pumping crude from a second offshore fields on Thursday, he additional revenue is expected to boost its sluggish economy.

The Tweneboa, Enyenra and Ntomme (TEN) field expects to average around 23,000 barrels per day (bpd) in 2016, eventually reaching 80,000 bpd along with associated gas to be harnessed to ease a domestic power deficit.

The country’s president, John Dramani Mahama opened the valves on the US$1 billion Floating Production, Storage and Offloading vessel – the John Evans Atta Mills – named after the former president who died in 2012.

TEN, with estimated reserves of 240 million barrels of oil and associated gas of 60 million barrels equivalent, is Ghana’s second oilfield after the country’s flagship Jubilee project, which began in late 2010.
The revenue from TEN is significantly less than was first anticipated when the country launched the project in 2013, owing to the slump in world oil prices.

“I believe that current setbacks in the oil market are temporary and we will see a recovery soon that will give a fair price to producers,” Mahama, who is seeking re-election on 7 December this year, said as he opened the valve. “It has been a long journey but a fruitful one.”

Oil revenue is vital as Ghana battles to bring down inflation and the budget deficit as well as stabilize the its currency – the Cedi.

Ghana was until recently considered one of Africa’s hottest investment destinations, due to its exports of gold, oil and cocoa. However, a fall in global commodity prices and a resultant fiscal crisis has slowed growth of the economy dramatically.

Source: The Africa Report