Following months of delays, natural gas from the Jubilee oil field offshore Ghana, is now expected to reach the shore in the third quarter of 2014.
Ghana National Petroleum Company’s CEO Alex Mould said that mechanical works on the $750 million plant, which will be processing the Jubilee gas, would be completed by the end of the month, and that production would begin in the third quarter of the year, Reuters reported. The plant is being constructed by China’s Sinopec at Atuabo area of the Ellembele district.
Separately, Emmanuel Armah-Kofi Buah, the country’s Minister for Energy and Petroleum, told the Ghanaian media last Friday that he expected the project, which is to process 150 million Standard Cubic Feet of raw gas per day, would be completed in July.
The Jubilee oil field is operated by Tullow Oil. The field which is the first deep water project ever developed in the country, has been producing oil since 2010 via an FPSO, but delays with the onshore gas plant have been preventing the associated natural gas to be piped ashore. To remind, the plant had been expected to go online in December last year.
In its annual report issued in January, Tullow said that, as a consequence of this ongoing delay in gas export, the Jubilee partners have had to pursue various alternative gas handling options.
In the fourth quarter of 2013, a third gas injection well was drilled and brought online. However, this well has had a limited impact, Tullow said.
The oil company said it was in talks with the Government of Ghana on other alternatives, including limited flaring, that will enable the field to average 100,000 bopd gross in 2014.
Tullow said in January it was confident that, once the gas processing facilities onshore are completed, the Jubilee field will be able to produce to its full potential given the field’s well capacity and the strong performance of both the reservoir and the FPSO to date.