TEN Oil Can Support Ghana's Economic Transformation - ACEP

The Africa Centre for Energy Policy (ACEP) welcomes the flow of first oil from the Tweneboa, Enyenra and Ntome (TEN) oil fields. As the second producing oil field, Ghana's oil and gas industry is growing and presents many opportunities for the government, the companies and the citizens. Starting with 23,000 barrels of oil production daily and expected to peak at 80,000 barrels, TEN has the potential to double government petroleum revenue, contribute to economic growth and provide job opportunities. We are also encouraged that the development of the oil fields provided room for Ghanaians to build the capacity of sector institutions and local firms through the local content initiatives. Particularly, the fabrication of some parts of the second Floating, Production, Storage and Offloading (FPSO) Vessel in Ghana, such as the anchor piles and module deck stools, has laid the foundation for more oil industry fabrication works to be done in Ghana. The government should therefore invest in building the capacity of more Ghanaians and setting fabrication centres in strategic areas of the country to maximize benefits from the oil industry and to position Ghana as an alternative service hub to Nigeria in the sub-region. Delivering the project on time and within budget in spite of the oil price crisis further establishes Ghana as a low cost environment and ready to attract more investments upstream. We are however aware that producing oil is one thing but sustaining production and accounting for it is another. Government must ensure that the challenges encountered with the Jubilee FPSO are not repeated. The anchoring and rotation enabling system, called the turret mooring system, the flow metre as well as the compressor system must be subject to strict due diligence and quality assurance. The flow meters ensure that the right volumes of oil are exported and revenue inflows could be accurately determined.