Ghana has recorded a new offshore oil discovery near the Jethro-1X well, announced President John Dramani Mahama. The discovery was made by Planet One Oil and Gas Limited and its partners in the Deepwater Cape Three Points Contract Area.
The well was drilled with the support of Tullow Upstream Limited and the Ghana National Petroleum Corporation (GNPC).
The discovery is an important milestone for Ghana's oil and gas industry, being the country's first successful test of a Cenomanian-Turonian carbonate play. President Mahama said the drilling fulfilled an exploration commitment and demonstrated investors' confidence in Ghana. The priority is now to speed up responsible exploration and develop the infrastructure needed to produce the country's oil and gas resources.
Ghana's oil production peaked at 88,000 barrels per day in 2019 but later declined to around 50,000 barrels per day due to limited drilling activities and delays in signing petroleum agreements. However, President Mahama's administration has engaged industry partners to resolve outstanding disputes and restore investor confidence, resulting in an increase in oil production to over 150,000 barrels per day.
Partners in the Jubilee Field have committed $2 billion, while partners in the Offshore Cape Three Points project have committed $1.5 billion to fund new wells, subsea infrastructure, and production facility upgrades.
President Mahama also announced that Ghana is engaging international oil companies to explore new opportunities in the country's Western and Eastern sedimentary basins. Three memoranda of understanding have been signed on key terms for three blocks, with discussions on other petroleum agreements still ongoing.
The government is committed to reviewing the Petroleum Exploration and Production Act, 2016 (Act 919), to introduce better incentives and attract investment into the sector.
According to President Mahama, the success of Ghana's petroleum industry should be measured by the opportunities it creates for local businesses and young people. He called on Ghanaian companies to build their capacity and meet the standards required to compete for major contracts in the industry.
The President also urged banks and other financial institutions to support credible local suppliers facing difficulties in securing funds to undertake bigger projects.