Mar(k): Travel, Hiking, and "Doing Good"

musings on our life of travel and volunteering

Ghana Oil Production – an update! July 2011

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Hello faithful blog readers!  We’re so happy to report that we have just recently ticked over 10,000 views of our wee blog!   So thanks for staying with us!  

We thought it was about time to provide an update, given that many visitors to our site are interested in Ghana’s progress as an oil producer. This short summary concentrates on oil production. Future updates will look at gas development plans (all being re-injected or flared at the moment), economics and how the government is managing its share of production, and lastly what’s happening with exploration in Ghana.

Most of the information has been collated from Tullow’s website, so it should be pretty trustworthy.

Feel free to post comments or ask questions!

Background

Jubilee was discovered in 2007, 60km offshore in water around 1200 m deep. Subsequent appraisal drilling confirmed the high quality field extended across two exploration permits: Deepwater Tano operated by Tullow and West Cape Three Points, operated by Kosmos. The field was therefore unitised and Tullow were appointed Operator of the “Jubilee Unit Area” on behalf of both Joint Ventures:  (click on the images below to be able to read them!  then hit the “back” button at the top of your browser to return to the blog).

About 50% field is deemed to lie in each permit (note that Southeast Jubilee, now named Mahogany East, lies outside the Jubilee Unit Area and will be the responsibility of Kosmos to develop). Also, GNPC have exercised their right to increase their equity in both permits to 13.5%, reducing each of the other interest holder’s equity by a proportional amount.

Development

Jubilee is a subsea development utilising a converted oil tanker to process and store the produced oil:

The total cost of the 17-well Phase 1 development was $3.3 billion – which works out at only $9/barrel (for the quoted mid-level estimate of Phase 1 reserves). First production was on 28 November 2010, an impressive 40 months after discovery of the field.

Production                                                                                                                                

Over 10 million barrels have already been produced (giving revenue of around $1 billion!) and the current (July 2011) production rate is 80,000 barrels/day from 7 of the 9 planned production wells (the other 8 wells inject gas and water into the reservoir). Plateau production of 120,000 barrels/day has slipped to August, with Reuters recently reporting this may be further delayed.

Forecast production (with 5% downtime) for the low, mid and high Phase 1 reserve estimates, is given below (on the right hand scale is the cumulative recovery):

Further Development

Planning for the 1a Phase of development is well underway. This is will likely consist of up to 8 further production and injection wells targeting an additional 100 million barrels (at the mid-reserves level). Production from these wells is expected to commence mid 2012.

Depending upon field performance, a notional Phase 1b (10-20 wells) may be considered to increase recovery by a further 205 million barrels.

Reserves

Reserves and estimates are given for each phase of the development in the table below in millions of barrels (MMbbl). Note that it is impossible to exactly determine how much oil will be recovered from a hydrocarbon reservoir. Instead low, mid and high estimates are made (which correspond to 90%, 50% and 10% confidence of equalling or exceeding the given estimate).

Also note that this table from Tullow splits the volumes between “Reserves” (commercially recoverable volumes) and “Resources” (potentially recoverable volumes which are not currently considered commercial).

Tullow often quote the reserves and resources range for Jubilee (which you really shouldn’t do) as 500 – 700 – 1000 million barrels, which you can see approximates the sum of each of the rows in the table.

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Written by Mar(k)

July 14, 2011 at 10:21 am

One Response

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  1. […] it is!  Click here for a more up to date view of Ghana’s Black Gold (updated July 2011)…. Advertisement […]


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