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GHANA STRIKES OIL
By Kweku Asare,ACCRA
Accra, June 18, Ghanadot - After several years of tedious
and sometimes acrimonious oil exploration activity, Ghana
has struck oil in commercial quantities in Cape Three Points
off the country's western coast of Takoradi.
The find is expected to boost development efforts in the
country and support the country in very significant ways as
in reducing the nation’s over 500 million dollar monthly
bill on crude oil imports.
President John Agyekum Kufuor is to make an official
announcement on the oil find at the Castle on Monday.
The discovery, which was noted last Friday, comes at a
critical period in Ghana’s history when the nation is facing
a year-long power crisis that has thrown the nation into an
acute load-shedding exercise that has parts of the country
in complete darkness 12 hours every other day.
Initial reports gathered by Ghanadot in Accra said UK-based
oil explorer Tullow Oil Plc said on Monday it had made a
significant oil discovery offshore Ghana.
Tullow said in a statement that an exploration well hit a
large hydrocarbon column. Industry sources said its size
suggested the field is now likely to contain at least 300
million-400 million barrels of oil.
The structure drilled extends into an adjacent exploration
block in which Tullow has a 49.95 percent interest,
suggesting material reserves could also be present there.
Tullow Oil shares are up 10% this morning in Dublin after it
reported a 'significant' oil find in Ghana.
Tullow said that based on evidence to date, ultimate
reserves are likely to be materially in excess of previous
estimates, with some high-potential zones still to be
drilled.
Aidan Heavey, CEO, said: 'The discovery of oil in the
Mahogany well represents a major event for the Republic of
Ghana and for Tullow'.
Tullow is quoted in London and Dublin and operates from
Europe, Africa, South Asia and South America.
Tullow shares were up 63 cent at 6.64 Pounds Sterling on the
back of the information that was made available on Monday.
The Statement noted that "The discovery of oil in the
Mahogany well represents a major event for the Republic of
Ghana and for Tullow.
Based on evidence to date, ultimate reserves are likely to
be materially in excess of previous estimates," Chief
Executive Aidan Heavey noted in his statement.
Ghana's Minister of Energy, Mr Jospeh Kofi Adda, led a group
of officials from the Ghana National Petroleum Corporation
to the oil rig at deep sea near Cape Three Points to
ascertain the progress being made after three weeks of
exploration.
Addressing journalists at the Takoradi Air force Base after
the trip to the rig, Mr Adda said the visit at the instance
of President Kufuor had brought the most exciting and
revealing news to all.
“We have seen exciting, but serious activity going on there
at the rig which is one of the biggest things we have been
dreaming of,” referring to government expectations over the
years, especially in the critical energy shortage times as
now.
The Minister noted that there was the need to tread
cautiously since exploratory works were still at the initial
stage.
"Despite the breakthrough, it is imperative as well to
further find out what right quantity, and quality of oil
deposits exists in the area".
Mr Jim Masselman, President and Chief Executive Officer of
Kosmos Energy Company, the parent company in the exploration
activity said: ‘We are pleased with the result and will
continue to explore’.
He was also cautious about the quantity of the find,
implying that there was still a lot more work to be done.
Kosmos Energy obtained the licence to explore oil three
years ago in Ghana after a parliamentary approval.
GNA
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