Thomas Manu
Government and the Jubilee partners have been in disagreement over the implementation of the Tweneboa, Enyera and Ntumme (TEN) Oil Project in the Western Region leading to its temporary suspension.
While government is asking the Jubilee partners to drill the Ntumme well for full assessment of its commercial viability and any associated risks before approving its development plan, the partners, on the other hand, say the project has ample economic value and should therefore be approved.
According to government, it needs more clarity on the project, hence its temporary delay.
A plan submitted by the Jubilee partners indicates that government is expected to approve the project by Friday to permit work by other service providers to start.
The plan, which was presented to government last year, details the quantity of crude oil deposits in the field and also the size of investment to be made by the partners in the project.
Thomas Manu, Director of Operations at the GNPC, explaining the issue to the media in Accra recently, said the Energy & Petroleum Resources Minister is authorized to approve the development plan.
?However, as advised, we think that the critical issues of the gas price negotiation and determining the extent of the Ntumme field are crucial in terms of how the field should be developed.?
The Jubilee partners have averred that any further delays in approving the TEN project will affect the investments and contracts of service providers. It is also expected to produce about 100,000 barrels a day when it begins commercial production in 2015.
About $1 billion is reported to have been invested in the project so far by the partners, who want to put in an additional $6 billion after the approval.
Officials at the Energy Ministry also noted that government?s delay of the project is intended to protect the interest of the state and avoid mistakes that were committed under Phase 1 of the Jubilee project.
Such mistakes negatively affected the attainment of the 120,000 barrels of oil a day maximum production announced by the partners, sources say.
As soon as the development plan is approved by government, the tender processes for the FPSO and subsea tender would be awarded.
By Samuel Boadi
