Ghana’s oil production is set to decline in 2022 as a result of coronavirus-related restrictions, which delayed work programs and other activities in 2020, according to the head of production at the country’s state-owned oil company (GNPC) as reported by S&P Global Platts.
Based on crude oil projections, output will drop to about 146,500 barrels per day (b/d) in 2022 from 150,000 b/d currently after COVID-19 restrictions slowed development activities, Albert Longdon-Nyewan, head of production at the Ghana National Petroleum Corp. said on the sidelines of the Africa Oil Week conference in Dubai on November 8, 2021.
While these concerns about the impact of COVID-19 pandemic on oil production were flagged entering into 2021, this lapse is likely to continue into the next year, he said.
Looking at total crude oil production from the three offshore producing fields- Jubilee, TEN, and the Sankofa field during the first half of 2021, production declined. Compared with 2020 figures, total crude oil fell by 18.9% from 34,236,596.97 barrels (bbls) in H1 2020 to 27,767,859 bbls of crude oil in H1 2021.
Longdon-Nyewan noted that drilling and completion of wells will be expanded to five or six wells next year from four this year, helping production to rebound back to 2020 levels in 2023. Oil production slipped to an average of 182,814 barrel per day in 2020 from 195,724 b/d in 2019.
“We’re doing everything we can to get production back on track”. Ghana’s natural gas production is currently 280 million cubic feet per day (MMcf/d) and may hit 318 MMcf/d next year, he said.
According to Longdon-Nyewan, Ghana is seeing growing interest from international oil companies to participate in its emerging oil and gas industries, including Italy’s ENI.
Oil Production and Increased Oil Assets in 2021
In October 2021, Africa-focused oil company Kosmos Energy bought part of Occidental’s shares on sale to the tune of US$550 million. The state-owned oil company also increased its stake in the Oxy’s sale transaction to the tune of US$200 million.
Chairman and Chief Executive Officer of Kosmos, Andrew G. Inglis said in the company’s recent third quarter results:
“With the recently executed transactions, Kosmos has significantly enhanced the outlook for the Company. The Oxy Ghana transaction accelerates our strategic delivery with increased near-term production and cash flow driving down leverage. The cash flow from the acquired assets also supports our portfolio transition to Liquefied Natural Gas (LNG) at a time of increasing global gas demand.”
In July, 2021, Eni made a significant oil discovery on the Eban exploration prospect in CTP Block 4, offshore Ghana. After preliminary assessments of the field, the oil major said the production testing data show an estimated well deliverability potential at 5,000 b/d.
Tullow Oil plc has also announced a ‘Value Maximization Plan’ with the intention to invest over US$4 billion over the next decade to deliver over 50 wells and deliver consistent revenue to Tullow and Ghana.
Although these expected increases in oil production and investments in the country’s oil fields are important notes, these are not likely to shoot up oil production as Longdon-Nyewan indicated.
READ ALSO: Benchmark advances to 2,968.01 points Amidst Up-swinging Market Capitalization
