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14.11.2007 Business & Finance

More Wells For Kosmos

By Daily Guide

The announcement that Kosmos Energy intends to drill four more oil wells in addition to the two already drilled before the end of the year must gladden the hearts of Ghanaians.

Kosmos Energy was the first oil exploration company to discover oil in significant quantity in the country. The additional wells are expected to help identify sufficient oil reserves in the Cape Three Points area of the Western Region of Ghana.

The increasing cost of crude oil in the World Market is prompting Ghanaians to agitate for early start of production to end crude oil importation by the country.

Indeed, the importation of crude oil takes the chunk of Ghana's foreign exchange earnings. If therefore there comes a time when the country would no more import oil, that would mark the beginning of the fortunes of the country.

Generally, oil discoveries mark the prosperity of countries, but the same also goes for curses for other countries. It all depends on how proceeds from oil sale are managed.

All that the people want is an end to the country's crude oil importation since the huge sums of money sunk into the importation could be used to finance other projects in the country.

Since the discovery was announced a few months ago many new investors have been attracted to exploration offshore.

The number of licensed blocks has increased tremendously. Drilling activities have also increased, with several companies scheduling more wells for next year.

With increased drilling activity, more discoveries are likely to be made to increase the country's oil reserves. The economic benefits that would accrue to the government, individuals and businesses cannot be quantified.

The government would benefit from its oil entitlement, royalties and other fees which all put together would rake handsome amounts of money into government coffers.

The oil production would as well create more employment opportunities for the youth and there would also be mass technology transfer from old oil producing countries to Ghana.

DAILY GUIDE advises the people that whatever the oil would bring to the country, the important thing is how to manage what would accrue from the proceeds.