Ghana’s stability, growing economy, and rapid progress in its oil and gas sector have earned it a reputation as Africa’s emerging star. Ghana is striving to dominate the sector by accelerating its oil extraction activities, and aims to double its oil production by the end of 2023.
This bold target, if achieved, would create an oil boom in Ghana and make it a leading African oil producer.
The West African nation has set the goal of doubling its oil output from the current 180,000 barrels per day (bpd) to 420,000 bpd within this year, according to the African Energy Chamber. Ghana also anticipates significant growth in its oil industry over the next ten years.
African countries are embracing investments in oil and gas recently, especially as parts of Africa look to speed up industrialisation, and as foreign investors seek to tap into the continent’s vast untouched oil reserves.
Ghana’s exploding oil sector for a future oil boom
As well as working on doubling oil output over the course of the year, Ghana is preparing for the future of its oil production, with With 17 projects in the pipeline for 2027. This includes three upstream projects, nine midstream projects for the transportation and processing of oil, and five downstream initiatives.
Lots already on the go in Ghana
Ghana already has several ongoing oil operations, including Phase 1 of the Pecan Conventional Oilfield, the Jubilee South East field, and the Ntomme Far West Development.
The Pecan Oilfield is projected to have a capacity of 82,500 bpd when production begins in 2025. Its first phase costs around $1.5 billion and is operated by Aker Energy Ghana Ltd. (50%), Lukoil (38%), Ghana National Petroleum Corporation (GNPC) (10%), and Bulk Ship & Trade (2%).
The Jubilee South East field, operated by Tullow Oil (38.98%), Kosmos Energy (38.61%), GNPC (19.69%), and PetroSA (2.72%), is expected to produce 37,000 bpd by the end of 2023.
Explorative drilling at the Ntomme Far West Development is planned for later in the year, and Ghana anticipates discovering additional oil and gas deposits here.
In addition, the inauguration of a new $1.98 billion oil refinery in Tema is expected this month. The refinery is projected to produce various petroleum products and is in discussions to acquire crude oil for refining.
A growing midstream sector
Ghana’s midstream sector is set to expand with the growth of exploration and production activities. The country has plans to develop various facilities like the Tema Floating Liquefied Natural Gas (FLNG) Plant, the Tema VI Liquids Storage Terminal, and several oil storage facilities and pipelines between 2023 and 2027.
The CEO of the Petroleum Commission of Ghana highlighted the country’s attractive investment opportunities in the energy sector, citing numerous oil discoveries and favorable fiscal terms.
With various projects in the pipeline, Ghana’s oil production is set to rise significantly by 2030. The country provides a chance for oil producers to develop cost-effective, low-carbon oil to meet global demand as the world moves toward a more sustainable energy future.
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