ACEP Hails TEN, But Expresses Worry

Africa Centre for Energy Policy (ACEP) has welcomed the flow of first oil from the Tweneboa, Enyenra and Ntome (TEN) oil fields as the second producing oil field.

ACEP noted that this “new baby” is an indication that Ghana's oil and gas industry is growing and presents many opportunities for the government, the companies and the citizens however, expresses some worry.

In a statement signed by Dr. Mohammed Amin Adam, Executive Director of ACEP expressed that they are worried about the statement by the president of Ghana to the effect that the Ghana-Ivory Coast boundary dispute affected the TEN project as the provisional measures order from the international tribunal included an order prohibiting new oil wells in the field.

He noted that whilst we wait for the final ruling on the boundary dispute, they encourage the two countries to increase dialogue on the matter to ensure that the citizens of the two countries do not suffer any potential insecurity that could arise from the ruling.

According to him, they are however aware that producing oil is one thing but sustaining production and accounting for it is another.

He therefore urged government to ensure that the challenges encountered with the Jubilee FPSO are not repeated.

Dr. Amin indicated that the anchoring and rotation enabling system, called the turret mooring system, the flow metre as well as the compressor system must be subject to strict due diligence and quality assurance.

He emphasised that the flow meters ensure that the right volumes of oil are exported and revenue inflows could be accurately determined.

“The Ghana Revenue Authority must in addition, ensure that the integrity of the measurement of oil produced is protected by installing parallel electronic seals in the pipelines of the FPSO to ensure electronic data transmission to onshore computerized centres to enable it monitor in real time the flow of oil from the field and to appropriately establish the tax liability of the oil companies,” the statement noted.

“Starting with 23,000 barrels of oil production daily and expected to peak at 80,000 barrels,

TEN has the potential to double government petroleum revenue, contribute to economic growth and provide job opportunities.”

Dr. Amin said they are encouraged that the development of the oil fields provided room for Ghanaians to build the capacity of sector institutions and local firms through the local content initiatives particularly, the fabrication of some parts of the second Floating, Production, Storage and Offloading (FPSO) Vessel in Ghana, such as the anchor piles and module deck stools, has laid the foundation for more oil industry fabrication works to be done in Ghana.

He urged that government should therefore invest in building the capacity of more Ghanaians and setting fabrication centres in strategic areas of the country to maximize benefits from the oil industry and to position Ghana as an alternative service hub to Nigeria in the sub-region.