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Summary of achievements leading to TEN First Oil

By MyJoyOnline
Business & Finance Summary of achievements leading to TEN First Oil
AUG 18, 2016 LISTEN

President John Mahama turned the valves of the FPSO John Evans Atta Mills to mark the commercial production of oil in Ghana's second oil reserve.

The Tweneboa, Enyera and Ntomme (TEN) Oilfield on which the Atta Mills FPSO sits is expected to produce between 20,000-23,000 barrels of oil per day.

Below is a summary achievements leading to TEN First Oil

1. GNPC staff mapped the prospect to identify the area which led to investors’ interest in the TEN Field.

2. GNPC also played unique roles in the Exploration, Appraisal and the Development concept selection which led to the successful submission and approval of the Plan of Development. Contrary to the strong positions taken by our TEN partners, GNPC worked to ensure that adequate wells were drilled to define the reservoirs, reservoir oil-water-contact was largely identified and gas export was achieved.

3. The TEN Field Operator’s initial development cost was US$5,958 million: Through GNPC’s discussion and negotiations with the TEN development partners, the final approved development cost was reduced to US$5,077 million, resulting in a development cost savings of about US$880 million to the State.

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4. GNPC led the process of negotiating and agreeing on the price of TEN gas for both the associated and non-associated gas discoveries. This major effort resulted in the reduction in TEN associated gas price from the initial proposed price of $9.50/mmBtu to the achieved price of $0.5/mmBtu for associated gas and agreed $3.00/mmBtu for non-associated gas. The price reduction resulted in a cost savings of US$2.9 billion over the field life.

GNPC also secured the option to reduce the TEN gas prices by financing 40% of the US$75 million TEN-to-Jubilee interconnection pipeline which yielded US$45 million in pipeline cost savings. GNPC achieved cumulative cost savings of US$3.83 billion for the State over the entire field life. Without the pipeline intervention, the cumulative cost savings stands at US$3.78 billion.

5. GNPC leveraged on the TEN project development to push its partners to agree to some level of engineering, fabrication and construction of some major components of the field development infrastructure such as, FPSO spools, suction piles, mud mat, jumpers, sleepers, gas export manifold, assembling and testing of 23 Christmas trees etc. to be carried out by local Ghanaian companies and personnel.

TEN is Ghana’s first oil and gas project where important FPSO and subsea production components have been fabricated in-country. The total local content involvement in-country exceeded the regulatory threshold of 10%.

6. Through the active involvement of personnel seconded from GNPC and continuous close collaborations with our partners, the project has been delivered on schedule and within budget

Story by Ghana| Myjoyonline.com | Joy Business

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