Topic: Economic and Financial Evaluation of oil production in the Ghanaian Jubilee oil field; “Tullow Ghana as case study”
1.0 INTRODUCTION
Kosmos Energy Ltd. discovered Ghana’s offshore Oil Jubilee Field in 2007. It was the Biggest and brightest opportunity for Ghana’s socioeconomic advancement in crude oil discovery for that year, coinciding with golden jubilee independence celebration “Ghana@50.” The field is located about 60km off the shores of Cape Three Point in the Western Region of Ghana (Kosmos Energy ltd, 2012). The Jubilee oil field is one of the best oil fields off the coast of West Africa. Besides that, the field is one of the largest offshore oil fields discovered off the West African shore in recent years. The total estimated recoverable hydrocarbon resource is about one billion barrels of crude oil and a significant quantity of natural gas (Africa Region, 2009). The crude in the field is light sweet crude with 37 API.
The Government of Ghana is fully committed to the development of the Jubilee Oil Field in order to proportionate and equate its economy to other nations.The Government, in collaboration with jubilee field operators, acquired production facilities to enhance the production of oil in the field. The Floating Production Storage and Offloading (FPSO) Kwame Nkrumah, which is 60 metres wide, 330 metres long and has the same length of approximately three football fields, has been acquired for the production of the oil in the field (Araujo, 2012). It is capable of processing more than 120,000 barrels of oil per day and 160 million standard cubic feet of gas per day (GNPC, 2012). It has a storage capacity of 1,600,000 barrels and the capacity to inject over 230,000 barrels of water within the same period. (Petroleum Economist, 2009).
Tullow Ghana Limited is the main operator at the field with 34.7% holding interest in Jubilee