Flexible terms must govern oil exploration in Ghana
Accra, Sept. 11, GNA - Oil exploration in the Keta Basin has become unattractive under existing inflexible conditions governing the business in Ghana, an industry expert has said.
Philip Liverpool, Director, Commercial, Kosmos Energy, said this when answering questions at a media training session for editors on oil and gas in Accra.
The event organised by the Ghana News Agency (GNA) and Kosmos Energy was titled: 'How oil and gas companies work-The Gas Economy and Opportunities for Ghana.'
Mr Liverpool said prospecting for oil in the Keta Basin has stalled because it has become unprofitable given the huge investment needed and the unattractive returns on investment there.
He said while it cost 50 million dollars to drill one exploration well in the Tano area, three times that amount was needed to drill one such well in the Keta basin.
Mr Liverpool said the geological conditions in Keta required that the wells there must go much deeper down the seabed than in Tano.
He said even the 'big boys' in the industry would be reluctant to take up the challenge in Keta except on very generous terms because of the investment needed and the financial risks involved.
He said government must therefore consider reviewing the same-size-fit-all package in the industry and tailor incentives to reflect the peculiarities of every exploratory area.
Asked if industry experts had advised government on the matter, Liverpool responded in the affirmative saying 'government knows better'.
Topics treated at the training included 'Gas to power, a catalyst for sustainable energy for Ghana' and 'Reporting gas, reporting growth: The role of the Editor.'
Dr Bernard Otabil, Chief Executive Officer of the GNA, briefed the editors on the Agency's newly developed IT portal that allows remote access to files, videos and audios.