9 Express interest in oil exploration

November 30, 2007 (Back page lead)

Story: Mabel Aku Baneseh

THERE will be increased activities of oil drilling in Ghana by nine oil companies next year following the projected investment of more than $430 million by these companies.
The companies are Afren and Celtique, a French and English company; Oranto Energy, a Nigerian company; Sterling Energy, UK; Vanco Energy, USA; Hess Corporation, USA; Kosmos Energy, USA; Tullow Energy, UK; Heliconia Energy, UK, and Devon Energy, USA.
These companies are investing between $10 million and $100 million in their drilling activities next year.
The Managing Director of the Ghana National Petroleum Corporation (GNPC), Mr Moses Oduro Boateng, in an interview with the Daily Graphic, said, “With the success chalked up with the finding of oil in the country, more companies have expressed interest in investing in the country’s oil sector.”
He said following the massive interest oil companies had in the country’s energy sector, “we have become more critical and cautious about the size of acreage allotted. We also take into account the financial and technical capabilities of companies desiring to invest in the exploration sector”.
Expatiating further on the activities of the companies, Mr Boateng said those companies, except Devon Energy, had six and a half years each to drill for oil in the country.
“Devon Energy, whose licence expires next year, has declared its intention to strategically pull out of Africa,” he disclosed.
“However, Devon Energy has committed to spend between $20 and $30 million in drilling a well in the Keta Basin if it is not able to sell its assets by next year,” Mr Boateng continued.
He said Afren Energy had indicated its interest in the Devon block and was currently negotiating to buy out Devon.
He said Afren and Celtique, Oranto Energy and Sterling Energy were expected to invest $50 million each in their activities in the Tano, Saltpond and West Keta blocks, respectively.
Mr Boateng stated that Vanco Energy would invest $60 million, while Hess Corporation and Kosmos Energy would inject more than $40 million and $50 million, respectively, into their activities in the Western Region.
He said Tullow Energy was expected to pump $100 million into its activities, while Heliconia Energy was expected to spend $10 million in conducting a three-dimensional seismic survey at Cape Three Points in the Western Region, after which it would evaluate and determine the next line of action to be taken.
Mr Boateng explained that most of those companies were expected to drill exploratory wells in their respective areas of operation.
He pointed out that Afren, Oranto and Sterling had applied to explore for oil and their application had since been negotiated, awaiting Cabinet approval and ratification by Parliament to enable them to explore for oil next year.
Mr Boateng gave the assurance that the GNPC was committed to promoting exploratory activities to make Ghana an oil hub in the sub-region.