President Akufo-Addo has launched Ghana’s first Oil and Gas Licensing Round at a ceremony in Accra attended by stakeholders in the Energy Industry.
The move forms part of efforts by the Ministry of Energy to increase transparency in the Oil Industry.
President Akufo-Addo addressing the gathering said Government was working to ensure transparency and value for money in the Oil and Gas Sector.
He said government was using the country’s oil revenue to create assets and not waste it on consumption and the accumulation of debt.
“We are investing revenues from oil in one of the most ambitious social programmes of our country’s history, i.e. the Free Senior High School Programme which received GH 455.9 million of Petroleum revenues in the 2018 budget,” he said.
According to him the Free SHS policy is ensuring that the country’s oil revenues were being equitably distributed to the people of Ghana and not ending up in the pockets of a few.
President Akufo-Addo told the gathering, countries that have benefited immensely from their oil and gas resources were those that implemented policies to accelerate value additional activities in their economies, through the development of forward and backward linkages and by investing oil revenue in strategic social and economic programmes.
He charged the Ministry of Energy and its implementing agencies as well as the Licensing Rounds Committee to cooperate and ensure that activities under the maiden oil and gas licensing round are carried out in a transparent and efficient manner.
Current oil status and prospects
Ghana currently produces 200,000 barrels of oil per day led by its flagship Jubilee field which produces about 100,000 bpd. The West African nation, which became a significant oil producer in 2010 when it began pumping from the offshore Jubilee field, is keen to unlock its vast oil and gas resources.
Global oil majors like BP, Shell and some independent producers have shown interest in acquiring a stake in oil assets in Ghana. Ghana would put up another six offshore blocks for auction next year following the successful launch of today’s licensing round.
Drawn to Ghana’s hydrocarbon potential, ExxonMobil Corp recently signed a deal with Ghana to explore for oil in the Deepwater Cape Three Point offshore (DWCTP) oilfield.
Exxon is doing due diligence to find a local partner to explore the block, a condition required to operate a field in Ghana.