GNPC Announces New Oil Well – But Eni, Vittol Lay Claim

Nana Boakye Asafu Adjaye, GNPC boss

The Ghana National Petroleum Corporation (GNPC) has announced that the Sankofa East-1 exploration well, located in the Cape Three Point Block, has encountered 61 feet of gas-condensate pay in Campanian-aged turbidite channel sands and also 74 feet of oil pay in Cenomanian sequence.

A release issued by GNPC, which disclosed this, stated: 'During the production test, performed in the oil level, the well flowed about 5,000 barrels of oil per day of 30°API oil.'

The Sankofa East discovery is located 4 kilometres east of the Sankofa gas and condensate discovery and drilled to a total depth of 3,650 metres in water depth of 825 meters.

'This discovery, while confirming the important role of this block in the development of non-associated gas resources, also reveals its oil potential. It is planned that after completion of logging operations, the well will be suspended for possible future use in appraisal and development operations.'

Thomas Manu, Director of Operations, said the Sankofa East discovery, which extends the presence of hydro-carbons on the East of the Main Sankofa Discovery has enhanced the value of the Sankofa and Gye Nyame discoveries, which is advancing towards a plan of development.'

GNPC has 15 percent carried interest in the Deepwater Tano Block while Eni has 47.222 percent working interest and Vitol Upstream Ghana Limited (37.778 percent working interest.

However, Italian Energy giant Eni, Africa's biggest foreign oil and gas producer and partner Vitol, claimed they made oil discovery offshore Ghana at two blocks.

Reuters quoted Eni and Vitol in a statement Thursday that the discovery had commercial potential and confirmed the importance of the block in terms of oil present, as well as natural gas and condensates.

Swiss-based Vitol, known for its role in buying and selling cargoes on the global market, has taken steps in recent years to acquire upstream and downstream assets.

As Africa's newest oil exporter, Ghana has attracted strong interest from exploration companies despite missing output targets last year after Tullow Oil postponed production from its lucrative Jubilee field.

Eni, which has massive gas reserves in Mozambique that have drawn interest from other majors, is keen to expand its footprint in Africa.

The planned sale of its controlling stake in Italian gas transport group Snam will raise about €6 billion ($7.83 billion) in cash and remove €11 billion of debt from the Eni balance sheet, resources that could be used to fund upstream business.

By Samuel Boadi