NATIONAL GAS DEVELOPMENT TASK FORCE ANNOUNCEMENT

Transcription

1 NATIONAL GAS DEVELOPMENT TASK FORCE ANNOUNCEMENT It is announced for the of the General Public that the launched National Gas Development Task force will post all information on the Task Force, including its membership, terms of reference, mode of work, work program and schedule of meeting on the Ghana government Official Portal ( ) All enquiries and requests for meeting and presentations by interested parties may be addresse to Task Force Secretariat either by mail: gastaskforce@castle.gov.gh, or by mail delivered to the office of the Task Force at Cedi House, on the 11 th Floor.

2 NATIONAL GAS DEEVELOPMENT TASK FORCE MEMBERSHIP Dr. Kwesi Botchway, former Minister of Finance and a member of the Economic Advisory council (Chairman) Mr. Amarquaye Armar, Energy Policy Advisory to H.E the President ( Member) Nana Boakye Asafu Adjaye, MD, Ghana National Petrolium Corporation ( Member ) Ms. Anna Bossman, Deputy Commissioner, Planning/ Investigations, CHRAJ ( Member ) Hon. Emmanuel Buah, Deputy Minister of Energy ( Member ) Dr. Kwaku Temeng, Oil & Gas Expert & Member of GNPC Board of Directors ( Member ) Hon. Seth Terkper, Deputy Minister of Finance and Economic Planning ( Member )

3 NATIONAL GAS DEVELOPMENT TASK FORCE TERMS OF REFERENCE BACKGROUND Significant quantities of natural gas are expected to be produced with oil for the Jubilee field. it is estimated that 1,000 cubic feet of gas will be produced with each barrel of oil. It is possible to process this associated gas to extract natural gas liquids ( NGLs ) and liquefied petroleum gas ( LPG ). The remaining lean gas can be used for the power generation and other industrial applications. The Jubilee Field is situated in the Deepwater Tano ( DT ) and West Cape Three Points ( WCTP ) blocks, approximately 60 km offshore Ghana, and it is under development by the jubilee Unit Partners. This development comprises the drilling of production wells, water injection wells, and gas injection wells, to be tied in via manifolds and riser base(s) to a floating production, storage, and offloading vessel ( FPSO ) located offshore some 130 km west of Takoradi. The water depth across the entire Jubilee Field area varies from 900 to 1,700m. The Jubilee field partners have agreed to provide the produced raw gas at no cost to Ghana. A small quantity will be utilized by the partners for the field operations. At peak Phase 1 Jubilee production, about 80 to 100 million cubic feet will be available to Ghana. The responsibility for installing the infrastructure to transport, process and market the gas is that of Ghana. It was hoped that the infrastructure would be in place to monetize the associated gas when oil production begins. Monthly revenues from the natural gas liquids to be recovered under the project are estimated at more than $30 million. This does not include the substitution value of dry gas to become available for sale to power producers and industrial enterprises. The Ghana National Petroleum Corporation ( GNPC ) has so far been managing all aspects of the commercialization initiative, including commercial arrangements, financing, and project management. The initial concept was to construct an offshore pipeline to transport the raw gas from the FPSO to the gas processing plant to be established onshore at Bonyere, to export the natural gas liquids and to transport the lean by pipeline to existing power plants at Aboadze and/ or Effasu. Financing for the project was to have been provided by JZ partners of GNPC and the World Bank through a Special Purpose Vehicle ( SPV ) Under the best circumstances it would take at least 18 months to construct the infrastructure as conceptualize. For a variety of reasons the project has been delayed to the point where it is practically impossible to have the ideal gas commercialization infrastructure in place by first oil.

4 REPORTING OBLIGATIONS Without prejudice to the generality of its mandate the Task Force shall in its final report cover, but not be restricted, to the following: An assessment of the models considered and the basis for recommending the selected model. Evaluation of the status and merits of GNPC s arrangements with various key players and such other arrangements as the Task Force may wish to consider, and determine their impact on the timely delivery of the project with particular reference to issues affecting : o Land acquisition from Traditional Authorities; o Product off take requirements and arrangements; o Formation and operationalization of the project SPV; Assessment of the overall institutional capacity of GNPC to implement the proposed project to completion through a Project Implementation Unit (PIU) and other project management options that may be considered. An evaluation of the relative merits of land vis à vis offshore pipelines for the delivery of dry gas to power plants and industrial enterprises. MODE OF WORK The Task Force shall consult with the Ministry of Energy, GNPC, Jubilee Field partners, and other government agencies (including VRA, BOST, and Energy Commission) and stakeholders, as needed. DURATION OF ASSIGNMENT This assignment is expected to be carried out within the next three (3) months. The final report is expected to reach His Excellency the President, and a copy sent to the Minister of Energy. Interim recommendations may be made by the Task Force as needed before the final report is submitted. T o avoid flaring gas, the Jubilee partners have developed plans to re inject the gas into the reservoirs until the infrastructure is in place to receive, process, and transport the gas. Capital costs so far related to gas injection is nearly $600 million. But there is some risk associated with gas reinjection that has to be averted or minimized. The geology of the Jubilee field is such that gas reinjection could reduce oil production in the long term, and /or lead to additional cost in drilling replacement wells or working over existing wells. OBJECTIVE The Task Force will review all aspects of the gas commercialization project, including its technical, economical, economic and financing options, and make recommendations on the most efficient and viable ways of bringing the project to fruition.

5 SCOPE OF WORK/TASK TO BE PERFROMED The scope of work/tasks to be performed by the Task Force shall include, but not be limited to the following: Review all available (project financing) models, including those currently being considered by GNPC, and select the model that best meets the primary objective of the GOG for the gas commercialization project. The Task Force may consider other options as they become available. Task Force shall review the current proposed joint venture partners and such others as there might be, and recommend the best joint venture partnership arrangement based on clearly stated technical, economic, and financing parameters. In deciding the appropriate joint venture partnering arrangements the Task Force shall be mindful of other discoveries in the offshore basin (e.g, Sankofa, Dzata) and shall duly consult with operators associated with such discoveries with the view to ensuring that the necessary synergies are anticipated and promoted. In selecting the best models and partners, the Task Force must uphold the GoG commitment to ensure that the local content and local participation policy is strictly adhered to without favour. The investment requirement of the selected model must be clearly identified and the model of funding delineated to ensure smooth implementation of the gas project.