[ 2011-04-19 ]

Ghana earned $112m from first oil lifting
Ghana earned a whooping $112.271,187 from 995,259
barrels of crude oil lifted from the Ghana Jubilee
Fields at Cape Three Points in the Western Region,
according to official figures released exclusively
to The Chronicle, from the Head Office of the
Ghana National Petroleum Corporation (GNPC) at
Tema.

According to the figures, contrary to general
speculations that Ghana’s oil might have been
sold at a cheap rate on the international market,
the first oil lifted by the GNPC was sold above
the international market for Brent crude.

The Chief Executive Officer of the corporation,
Nana Boakye Asafu-Adjaye, told The Chronicle that
a barrel of the first lifting by the corporation,
sold at $112.86 on the international market, at
the same time the British Brent crude was doing
the rounds at $110 a barrel.

“The first company (Tullow Oil) that lifted oil
sold it at a discount. Then the price started
climbing. It would get to a point that there would
be consistency in the premium over Brent.

“By that, you can now know the value to give
out. The first consignment lifted by GNPC on 9th
March, this year, sold at a price of $112.86 per
barrel,” Mr. Asafu-Adjaye explained, oozing with
exhilaration.

According to the Chief Executive, the Ghanaian
Government had anticipated a market value of
US$110 per barrel, when it first lifted its share
of the Jubilee light crude oil on the night of
March 9, 2011, but little did she know that the
escalating oil prices on the world market was
going to be an added advantage.

Overall, Ghana earned US$112,271,187 from the sale
of the oil produce, which was paid into the
GNPC’s account on April 8, 2011.

For the first lifting of the Jubilee light crude,
Tullow Ghana Limited reported that the price
obtained was over US$90 per barrel.

Explaining why Ghana still buys oil from the
international market at an expensive price, when
the state owned oil company, GNPC, which holds
13.75 percent interest in Jubilee Fields, was
lifting oil and selling on the international
market, Nana Asafu-Adjaye said the Jubilee light
crude oil was a new product on the world market,
and like any new product, it needs to be branded
in order to carve the right market position
internationally.

“To get the value that we so much desire, the
world must know the product. To get value for the
Jubilee light crude, we really have to market it
until all refineries in the world are satisfied
with the quality,” Nana Asafu-Adjaye told The
Chronicle.

Currently, Ghana produces 67,000 barrels per day
from five out of the nine wells in the Jubilee
Field. Officials of the GNPC further anticipate
that by the middle of this year, all the nine
wells in the Jubilee Field would be utilised, in
order to get a production capacity of 120,000
barrels per day.

“We are producing from five wells out of the
nine drilled wells. By the middle of this year,
around June or July, we will have all the nine
wells producing. Currently, we are producing
around 67,000 barrels per day.

But, around June or July, we will hit close to
120,000 barrels per day,” the CEO said, flanked
by Mr. Andrew Badoo, Director of Administration,
and Mr. Thomas Manu, Director of Exploration, both
of GNPC.

In November 2010, Ghana started production of oil
in commercial quantities, with the first cargo of
crude oil from the Jubilee fField lifted in
January 2011 by Tullow Ghana Limited (the British
company owns 34.7% stake in the Jubilee Field),
and EO Group (has 1.5% stake in the Jubilee
field). The quantity lifted was 649,064 barrels,
which was marketed and sold through their agent,
Vitol SA.

Subsequently, Kosmos Energy Ghana HC, which owns
23.49% of the field, lifted 989,360 barrels of
Jubilee light crude in January 2011, whilst
Anadarko WCTP Company (23.5% stake) and Sabre Oil
and Gas Holdings Limited (2.8% stake in the
Jubilee field) also jointly lifted 996,708 barrels
of Jubilee light crude on February 9, 2011.

In terms of pricing, Nana Asafo-Adjaye said the
oil markets are very volatile with spot prices
changing daily.

However, the GNPC boss said for the country to get
optimum value for the Jubilee light crude oil,
there ought to be consistency in terms of quality
from all the nine wells in the Jubilee Field.

This, he said, would build confidence in major
refineries across the world, after having access
to the Jubilee light crude oil.

“Bonny light is an index bench mark crude. Brent
is also a bench mark. They have been producing
since 1974. We have just started, and it will take
us some time. As it is known, and the brand is
established, that optimum value in terms of price
for the crude oil would be attained,” said Mr.
Manu, Director of Exploration at the GNPC.

“The more you sell out, the more you are able to
achieve for the establishment as a brand,” he
added.

Source - Citifmonline

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