Posted: The Chronicle Friday, January 16, 2009
If what experts are saying is anything to go by then there are strong indications that Ghana is likely to join the league of the world’s Oil-rich producing Countries. Experts from Kosmos Energy have told President Mills that the latest discovery in its exploration puts Ghana in the world class category.
Chairman and Chief Executive of the company, James Musselman, who led a delegation of the company’s Management to the Osu Castle to congratulate President Mills on his election as President of the Republic expressed optimism that by the second half of year 2010, Ghana would start pouring oil in commercial quantities.
The company also took the opportunity to brief the President on the current state of affairs at the oil fields of Cape Three Point,
where intensive exploration works are still ongoing.
Mr. Musselman assured President Mills and Ghanaians of the preparedness of the company to intensify their search for more oil on the field.
Officials of the company paid glowing tribute to the government and people of Ghana for the way and manner in which they conducted themselves during the recent Presidential and Parliamentary elections, in spite of the heat that characterised the campaign process.
President Mills on his part thanked management and staff of Kosmos Energy for the work done so far.
He advised management to be open in their activities and operations in order to strengthen the confidence reposed in them by the government and people of Ghana, whilst emphasising the need to employ and train local hands on the job, to enable them to acquire and develop the needed skills.
He however, cautioned them against practices that could affect the environment. The President also cautioned that his government would not hesitate to punish Investors who take undue advantage of the people. For that matter, he asked management of the company to endeavour to fulfil their corporate social responsibility by striving to bring development to the area of their operation.
Though the government has promised to support foreign Investors in their business endeavours, President Mills entreated these companies to conduct their activities and operations within the confines of the laws of this country.
The President further entreated the management of Kosmos Energy to procure goods and services from local sources in order to promote business in the Western region.
Somewhere last year, Kosmos Energy announced that the company has made a second significant oil discovery offshore of the Cape Three Points Block.
It is estimated that African countries own 8% of world oil reserves.
An estimated $200bn in revenues will flow into African government treasuries over the next 10 years as new oilfields open up throughout the Gulf of Guinea.
Experts in the industry foresee that oil will bring the largest influx of revenue in the continent’s history, and more than 10 times the amount western donors give each year in aid.
Five countries including Nigeria, Libya, Algeria, Egypt and Angola dominate Africa’s upstream oil production.
Together they account for 85% of the continent’s oil production and are, in order of decreasing output.
Other oil producing countries are Gabon, Congo, Cameroon, Tunisia, Equatorial Guinea, the Democratic Republic of the Congo, and Cote d’Ivoire.
Nigeria is estimated to have 3.62 billion barrels of proven oil reserves as of January 2007. The government plans to expand proven reserves to 40 billion barrels by 2010. Majority of the reserves are found along the Niger delta in southern Nigeria.
Nigeria has a total production capacity of 3 million barrels per day, including 2 million barrels onshore and 1 million offshore. Nigeria is the largest oil producer in Africa, 11th largest producer in the world.
Libya has oil reserves estimated at 39 billion barrels. However, experts say the Arab country has the potential for further oil discovery, with only 25% of potential ‘oil land’ by the oil companies due to sanctions and stringent fiscal terms imposed on foreign oil companies.
In a related development, a delegation of the government of India also called on the President, at the seat of government to congratulate him on his election as President of the Republic.
The delegation, which was led by the country’s External Affairs Minister, Anand Sharma and the Indian High Commissioner to Ghana, Ruchi Ghanashyam assured Ghana of India’s support to Ghana.
They also expressed their willingness to strengthen cooperation with Ghana, tracing ties between the two countries as dating back to the days of the Country’s first Prime Minister, Jawarlal Nehru and Ghana’s Osagyefo Dr. Kwame Nkrumah.