1 ` ghana’s petroleum sector and investment opportunities presentation at the 2 nd india-africa...

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GHANA’S PETROLEUM SECTOR GHANA’S PETROLEUM SECTOR AND INVESTMENT OPPORTUNITIESAND INVESTMENT OPPORTUNITIES

Presentation at the 2Presentation at the 2ndnd India-Africa India-Africa Hydrocarbons Conf: Dec. 7-8, 2009Hydrocarbons Conf: Dec. 7-8, 2009

BY HON. BUAHBY HON. BUAH

All Rights Reserved 2

PRESENTATION OUTLINE

• Introduction• Upstream Petroleum Sector• Fiscal, Legal & Contractual Regimes• Gas Policy • Gas Master Plan• Key Local Content Requirements• Investment Opportunities• Conclusion


INTRODUCTION

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Energy Sector Institutions

Ministry of Energy

Power Petroleum Renewable Regulation

Volta River Authority

ECG

Northern Electricity Dept.

Ghana National Petroleum Company

Tema Oil Refinery

BOST

Energy FoundationOil Marketing

Companies

Min of Energy Energy Commission

Public Utility Regulatory Commission

National Petroleum Authority

THE UPSTREAM SECTOR

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1. Western Basin Tano-Cape Three points Basin

2. Central BasinSaltpond

3. Eastern Basin Accra-Keta Basin

4. Voltaian BasinInland basin, covering about 40% of the Land area of the country

K

GNPC

NOV. 2008

Atuabo....

ACTIVITIES OFFSHORE


JUBILEE FIELD

Jubilee Field was Discovered in the Deepwater West Cape Three Points (WCTP)/Tano Block in June & August 2007 by a Consortium of Companies

– Kosmos Energy Ghana (HC) – Anadarko Corporation– Tullow Oil– EO Group– Sabre OilTogether with Ghana National Petroleum corporation,


JUBILEE FIELD

TweneboaDiscovery


• Reserve– 800 Million Barrel Recoverable – Upside of 1.5 Billion barrels– Hydrocarbon Characteristics

• Density of 36.5º API • Sweet Crude• 1,000 to 1,200 Gas-to-Oil Ratio

• Seventeen (17) wells to be drilled (Phase 1 Devlp)– 9 Producers– 3 Gas injection– 5 Water injection


Phase Production of Field

– Phase 1 starts in 2010 • 120,000 Barrel/Day Oil Production• 120 MMSCF/Day Gas Production

– Phase 2 Starts in 2013• 240,000 Barrel/Day Oil Production• 240 MMSCF/Day Gas Production

Some percentage of Produced Gas will be re-injected if technically prudent. Part of the gas would also be used on the FPSO for normal operation and the rest would be piped to shore for the proposed gas project.


FISCAL, LEGAL & CONTRACTUAL FRAMEWORK


LEGAL & CONTRACTUAL FRAMEWORK

The legal framework for upstream petroleum activities in Ghana is embodied in the

• Constitution of the Republic of Ghana• Ghana National Petroleum Corporation Law, 1983• Petroleum Exploration & Production Law, 1984 • Petroleum Income Tax Law, 1987 • Model Petroleum Agreement• Internal Revenue Act, 2000 • Environmental Protection Agency Act, 1994 • Environmental Assessment Regulation, 1999


FISCAL SYSTEM

The Fiscal Regime includes the following:Royalty: 4% - 15%GNPC’s Initial Interest (Carried): 7½% - 15%GNPC’s Additional Interest: 3% - 10%Petroleum Income Tax: 35%Additional Oil EntitlementSurface Rental


GAS POLICY


KEY DRIVERS

• No flaring or Venting of Natural Gas

• All Gas will be processed onshore and Gas for Injection piped to FPSO

• Natural Gas will be a catalyst for national economic development


Petrochemical Industry

Gas Processing Plant

No Gas Flaring

Pipelines


THE GAS MASTER PLAN


STRATEGIC PLAN

• To Bring Associated Gas from the Jubilee Field to shore

• To process the transmitted wet gas into dry gas and liquids including

– Liquefied Petroleum Gas (LPG)– Condensate– Propane


• To supply gas for electricity generation and other industrial applications

• To supply LPG to domestic Market

• To export the other liquids

• To facilitate the economic development of Ghana with the availability of reliable gas supplies as a catalyst for the dev of other natural resources ( Bauxite, Lime, etc)


Onshore Pipeline

LPG Buoy

Gas Plant


LOCAL CONTENT


DEFINITIONDEFINITION

The quantum of composite value added or created in the The quantum of composite value added or created in the Ghanaian economy Ghanaian economy

• Through the utilization of Ghanaian human and material Through the utilization of Ghanaian human and material resources resources

• For the provision of goods and services to the petroleum For the provision of goods and services to the petroleum industry industry

• Within acceptable quality, health, safety and environmental Within acceptable quality, health, safety and environmental standards standards

So As to stimulate the development of indigenous So As to stimulate the development of indigenous capabilitiescapabilities


CRITERIACRITERIA

Criteria for defining such local content include the following:Criteria for defining such local content include the following:• Percentage of Ghanaian Management in Service Companies Percentage of Ghanaian Management in Service Companies

set up in Ghana;set up in Ghana;

• Infrastructural investments in Ghana;Infrastructural investments in Ghana;

• Percentage of Ghanaian ownership in company;Percentage of Ghanaian ownership in company;

• Percentage of Ghanaian Employees (Skilled and Unskilled);Percentage of Ghanaian Employees (Skilled and Unskilled);

• Percentage value of Services provided by Ghanaians;Percentage value of Services provided by Ghanaians;


• Percentage Value of Ghanaian Raw Materials utilized;Percentage Value of Ghanaian Raw Materials utilized;

• Percentage Value of Ghanaian Finished Goods utilized;Percentage Value of Ghanaian Finished Goods utilized;

• Technology Transfer/Capacity Development Technology Transfer/Capacity Development Programmes;Programmes;

• New Employment Opportunities for Ghanaians; andNew Employment Opportunities for Ghanaians; and

• Ghanaian Participation in the procurement of imported Ghanaian Participation in the procurement of imported goods.goods.


INVESTMENT OPPORTUNITIES


Some of the ancillary business opportunities that might become available include the following:

• Dedicated shorebase with a dedicated mini harbour;

• Onshore support and logistics;

• Supply chain services;

• Expansion and rehabilitation of the Takoradi airport;


• Helicopter and fixed wing aircraft transportation;

• Supply boats, anchor handling boats, diving vessels, etc;

• Real Estate – housing of the numerous expatriate staff of oil companies and service companies;

• Telecommunications, weather forecasting, search and rescue facilities;

• Banking and Insurance Services.


Construction Opportunities:– LNG pressure vessels

– Construction, installation and commissioning of offshore structures

– Pipeline manufacturing from steel

– Electrical wiring of platforms and vessels


– Installation and maintenance of instrumentation for production plants

– Welding and Joinery

– Assembling of knocked down structures in yards in Ghana

– Dry Dock services.


CONCLUSION

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Why Invest in Ghana’s Petroleum Sector?

• Strong Macro-Economic Growth driving energy demand

- GDP growth of 6% presently.- Inflation reduced from 41% in 2000 to 10.5%

presently • Strong growth in energy demand - Electricity consumption growing at about 10%

per year- Petroleum products demand growing at about

6% per year

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• Transparent Regulatory Environment- PURC Act 538, 1997- PURC to regulate/approve electricity tariffs- EC Act 541, 1997 - EC responsible for licensing and technical

regulation of operators in power and natural gas business; Act defines the structure of electricity and natural gas markets

- National Petroleum Authority (NPA) Act 691 – regulates the petroleum industry

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• Government believes in Private Sector to grow the economy

• The investment climate is good and incentives for investment in energy sector are attractive

• Stable political and democratic Government• We are ready to discuss further incentives

with the private sector


THANK YOU

1 ` ghana’s petroleum sector and investment opportunities presentation at the 2 nd india-africa...

Documents

gas policy slide

introduction slide

country slide

buah slide

gas injection

water injection slide

activities offshore

mmscfday gas production