Oil and Natural Gas in Ghana

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The Ghana National Petroleum Corporation (GNPC) was established in 1983 as a body corporate to undertake the “exploration, development, production and disposal of petroleum”. GNPC began to operate in 1985.

• Oil production: 7,477 bbl/day (2004 est.)
• Oil proved reserves: 8.255 million bbl (1 January 2002)

• Natural gas proved reserves: 23.79 billion cu m (1 January 2005 est.)

• In 2002, Oklahoma-based Devon Energy and Canadian independent EnCana Corporation entered into an agreement with the GNPC to explore for hydrocarbons offshore of southeastern Ghana in the Keta Basin. The companies are currently analyzing seismic data on the Keta Block. Devon has been active in Ghana since 1997 when it acquired the Keta concession.

• Houston-based Vanco Energy Company also signed an exploration agreement with the Ghanaian government in August 2002. In May 2005, Vanco Energy completed 3D seismic research on its Cape Three Points Deepwater Block, and the company planned to drill its first exploration well on the block in 2006.
  

• In 2005, Saltpond Offshore Producing Ltd (SOPL), which is owned by the U.S.-registered Lushann-Eternit (60 percent) and the state-owned Ghana National Petroleum Company (GNPC) (40 percent), signed a $5 million redevelopment project that will restart six wells on the Saltpond oil and natural gas field. SOPL hopes the additional wells will increase production from the current 500 bbl/d to 1,500 bbl/d. The former operator of Saltpond field, Agripetco, had shut the field down in 1985 due to decreasing output.

• Scottish-based Dana Petroleum is currently analyzing exploration targets in the deepwater section of its West Tano Block. The company previously drilled two successful test wells, WT-1X and WT-2X on Tano field, and made estimates that the field contained oil reserves of 200 million barrels. However, Dana Petroleum indicated that only a small amount of the oil would be recoverable due to geological reasons. Dana Petroleum operates the block with 90 percent interest and is joined with GNPC (10 percent).

• Dallas-based, Kosmos Energy signed a seven-year oil exploration agreement with Ghana. Kosmos will search for oil in the Tano Basin, adjacent to Vanco Energy’s Cape Three Points Deepwater Block. Kosmos is operator of the West Cape Three Points license with 86.5 percent interest and is joined with GNPC (10 percent) and E.O. Group - a Ghanaian oil and gas company- (3.5 percent).
  

• Tullow Oil plc was awarded operating interests in June 2006 in two offshore licences in Ghana, Shallow Water Tano and Deepwater Tano. Tullow Oil operates the Deepwater Tano license, in which a significant well was drilled in 2007, holding a 50% stake. Its partners are Kosmos Energy and a subsidiary of Anadarko Petroleum Corp, Sabre Oil & Gas, and the Ghana National Petroleum Corp. At the same time Tullow concluded a farm-in agreement on a third offshore licence thereby acquiring a 22.9% interest in the adjacent West Cape Three Points block. The Shallow Water Tano block contains three undeveloped oil and gas fields and Tullow's initial objective is to evaluate the potential to commercialise one or more of these accumulations. The other two blocks offer significant exploration potential in both the Albian and Upper Cretaceous intervals. The three licences lie in the greater Ivorian Basin and are on trend with the Espoir oil and gas field in neighbouring Côte d'Ivoire in which Tullow holds a 21.33% interest.

Source: Tullow Oil