Sankofa – Gye-Nyame oil field starts production in July

Sources say even though production has already started, this would just be a formal ceremony to herald production on the field.

This would aid production of about forty-five thousand barrels of crude in the first phase of production and up to 180 million standard cubic feet by end of next year.

Meanwhile Energy Expect, Ben Boakye is worried the necessary structures have not been instituted for Ghana to really benefit from this oil field.

He said, “Immediately we do know that the western enclave is not going to be able to consume the entire gas that would be available. What that means is that, we have to reverse further gas to the eastern corridor.…I know arrangements are in place to reverse it through the West Africa Gas Pipeline for a long period of time. So we need to hasten that process to ensure that once the gas is produced, we are able to transmit that gas to the west to ensure the plants that are on the corridor are also using the gas.

Mr. Boakye said, “We have a Take-or-pay agreement and once they produce the gas we should be on the standby to consume the gas else, that will also be another cost to the sector. So some decisions have to be made quickly.”

Economist Dr. Ishmael Yamson is however warning government not to see the extra revenue from the field as an answer to its problems.

Production on Sankofa-Gye Nyame field could help increase electricity by 1000 megawatts. Government is expected to rake in some 2.3 billion dollars in revenue every year.

 

Source: myjoyonline