John Mahama, Vice President of Ghana
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24th March, 2010
Oil Laws Will Be Passed Before The Flow - Veep
After an extensive tour of the Jubilee oilfield off Cape Three Points in the Western Region yesterday, Vice-President John Mahama remarked, “everything is on course” for commercial production of oil to commence before the end of December.
It is expected that 120,000 barrels of oil will be produced daily.
Mr. Mahama stated that while technical work on the Jubilee field was progressing smoothly, government was putting in place the appropriate legislative framework to regulate the industry, which he said, would be ready before production starts.
He mentioned the Local Content Legislation Bill, to promote local participation in all aspects of the oil industry, Oil Revenue Management Bill, to guide how revenue from the oil find would be used and a Gas Policy to tackle the production of natural gas, its pricing and access.
The Vice-President said the bills would soon be forwarded to Parliament for passage into law after Cabinet had given its approval.
He observed that a good number of staff working on the oil rig were Ghanaians, and said Parliament would invite memoranda from the public to make input in the local content legislation to ensure it benefited Ghanaians.
Vice-President Mahama said contrary to fears expressed by sections of the public that focus would be placed on the oil find to the detriment of other sectors, government would invest the oil resources in human resource development, agriculture and in other strategic sectors of the economy.
He advised chiefs in the oil find area to be circumspect in the way they allocated lands to people with commercial interests and other investors. “We should not give out the lands for just a pittance otherwise, posterity will not forgive us.”
Mr. Mahama was impressed with what he saw during the tour of the Jubilee oilfield, which included an aerial view, and commended the partners for developing the country’s oil and gas potential.
In 2007, Tullow Oil, a leading oil and gas exploration firm, and its partners, announced the discovery of oil in commercial quantities in the Jubilee field.
The cost of developing the field is in excess of three billion dollars while estimated reserves in the oilfield are 800 million barrels.
Cost of drilling one well is about 80 million dollars. Seventeen wells have been drilled so far.
Mr. Dai Jones, General Manager of Tullow Ghana Limited said it took the company three years instead of seven years to develop the oilfield due to its world class nature. “We are on track to deliver oil in the fourth quarter,” he said.
It is expected that 120,000 barrels of oil will be produced daily.
Mr. Mahama stated that while technical work on the Jubilee field was progressing smoothly, government was putting in place the appropriate legislative framework to regulate the industry, which he said, would be ready before production starts.
He mentioned the Local Content Legislation Bill, to promote local participation in all aspects of the oil industry, Oil Revenue Management Bill, to guide how revenue from the oil find would be used and a Gas Policy to tackle the production of natural gas, its pricing and access.
The Vice-President said the bills would soon be forwarded to Parliament for passage into law after Cabinet had given its approval.
He observed that a good number of staff working on the oil rig were Ghanaians, and said Parliament would invite memoranda from the public to make input in the local content legislation to ensure it benefited Ghanaians.
Vice-President Mahama said contrary to fears expressed by sections of the public that focus would be placed on the oil find to the detriment of other sectors, government would invest the oil resources in human resource development, agriculture and in other strategic sectors of the economy.
He advised chiefs in the oil find area to be circumspect in the way they allocated lands to people with commercial interests and other investors. “We should not give out the lands for just a pittance otherwise, posterity will not forgive us.”
Mr. Mahama was impressed with what he saw during the tour of the Jubilee oilfield, which included an aerial view, and commended the partners for developing the country’s oil and gas potential.
In 2007, Tullow Oil, a leading oil and gas exploration firm, and its partners, announced the discovery of oil in commercial quantities in the Jubilee field.
The cost of developing the field is in excess of three billion dollars while estimated reserves in the oilfield are 800 million barrels.
Cost of drilling one well is about 80 million dollars. Seventeen wells have been drilled so far.
Mr. Dai Jones, General Manager of Tullow Ghana Limited said it took the company three years instead of seven years to develop the oilfield due to its world class nature. “We are on track to deliver oil in the fourth quarter,” he said.
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