Jubilee Field partner, Kosmos Energy, has encouraged government to facilitate exploration projects for oil organizations in the wake of the coronavirus pandemic.
In an interview, the Senior Vice President and Head of Ghana Business Unit of Kosmos Energy, Joe Mensah, suggested that government’s assistance can alleviate the effect of the pandemic on the oil and gas industry in Ghana.
“At the beginning of the year, a barrel of oil was sixty dollars. It went all the way down to 20 dollars and even at one point, it went negative. It has come back up between $35 and $40 per barrel, and that is something that we can work with,”
he said.
“As we are trying to look for areas to further our exploration projects, government can facilitate the process to make it possible for us to do more business. I think it is better than giving us a hand-out. There are nearby fields that are closer to areas we are developing. And if government can give us the permission to take advantage of these lands, it will benefit everyone in the country,”
he further explained.
Not long ago, Kosmos Energy reported that the deepwater Jubilee gas enchancement project was completed in February with subsequent rates of around 90,000 b/d accomplished.
The pandemic effect on Ghana’s oil revenue
The fall in oil prices combined with diminished interest for oil, has negatively affected the global oil industry and has gravely affected players in Ghana’s oil sector.
Having set a benchmark of $58.66 oil cost per barrel until the end of 2020, Ghana’s anticipated oil income is set to endure a shot, with analysts already projecting the nation get to a half of its anticipated income.
The coronavirus pandemic has indeed hit every sector in the economy; however, the energy sector has suffered a great deal.
According to the Minister of Finance, Ken Ofori-Atta, Ghana will record a significant plunge in the revenue target for 2020 due to the atrocity of the coronavirus pandemic.
He said the nation is recording an enormous decrease in revenue from the port, oil income receipts as well as tax income due to the economic slowdown being experienced as the world battles to stop the spread and contain the virus.
