Transcript the gas master plan

GHANA’S PETROLEUM SECTOR AND
INVESTMENT OPPORTUNITIES
nd
2
Presentation at the
India-Africa
Hydrocarbons Conf: Dec. 7-8, 2009
BY HON. BUAH
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PRESENTATION OUTLINE
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Introduction
Upstream Petroleum Sector
Fiscal, Legal & Contractual Regimes
Gas Policy
Gas Master Plan
Key Local Content Requirements
Investment Opportunities
Conclusion
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INTRODUCTION
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Energy Sector Institutions
Ministry of Energy
Power
Petroleum
Renewable
Regulation
Volta River
Authority
Ghana National
Petroleum Company
ECG
Tema Oil Refinery
Public Utility Regulatory
Commission
Northern Electricity
Dept.
BOST
National Petroleum
Authority
Energy Foundation
Oil Marketing
Companies
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Min of Energy
Energy Commission
THE UPSTREAM SECTOR
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1. Western Basin
Tano-Cape Three points Basin
2. Central Basin
Saltpond
3. Eastern Basin
Accra-Keta Basin
4. Voltaian Basin
Inland basin, covering about 40% of
the Land area of the country
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ACTIVITIES OFFSHORE
GNPC
.Atuabo
K
NOV. 2008
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 Oil
Together with Ghana National Petroleum corporation,
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JUBILEE FIELD
Tweneboa
Discovery
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• 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
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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.
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FISCAL, LEGAL & CONTRACTUAL FRAMEWORK
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LEGAL & CONTRACTUAL FRAMEWORK
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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
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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 Entitlement
 Surface Rental
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GAS POLICY
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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
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Pipelines
Gas Processing Plant
Petrochemical
Industry
No Gas Flaring
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THE GAS MASTER PLAN
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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
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• 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)
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Gas Plant
Onshore Pipeline
LPG Buoy
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LOCAL CONTENT
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DEFINITION
The quantum of composite value added or created in the
Ghanaian economy
• Through the utilization of Ghanaian human and material
resources
• For the provision of goods and services to the petroleum
industry
• Within acceptable quality, health, safety and environmental
standards
So As to stimulate the development of indigenous
capabilities
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CRITERIA
Criteria for defining such local content include the
following:
• Percentage of Ghanaian Management in Service Companies
set up in Ghana;
• Infrastructural investments in Ghana;
• Percentage of Ghanaian ownership in company;
• Percentage of Ghanaian Employees (Skilled and Unskilled);
• Percentage value of Services provided by Ghanaians;
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• Percentage Value of Ghanaian Raw Materials utilized;
• Percentage Value of Ghanaian Finished Goods utilized;
• Technology Transfer/Capacity Development
Programmes;
• New Employment Opportunities for Ghanaians; and
• Ghanaian Participation in the procurement of imported
goods.
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INVESTMENT OPPORTUNITIES
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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;
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• 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.
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 Construction Opportunities:
– LNG pressure vessels
– Construction, installation and commissioning of
offshore structures
– Pipeline manufacturing from steel
– Electrical wiring of platforms and vessels
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– Installation and maintenance of instrumentation
for production plants
– Welding and Joinery
– Assembling of knocked down structures in yards
in Ghana
– Dry Dock services.
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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
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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
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THANK YOU
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