Thepetroleum industry ofGhana is regulated by the state-ownedGhana National Petroleum Corporation (GNPC) and administered by the state-ownedGhana Oil Company (GOIL).
The 100% state-ownedfilling station company of Ghana,Ghana Oil Company (GOIL) is the number 1 petroleum and gas filling station of Ghana; and commercial quantities of offshoreoil reserves in Ghana were discovered in the 1970s. In 1983 the government established the 100% state-owned state oil companyGhana National Petroleum Corporation (GNPC) to promotehydrocarbon exploration and production of Ghana's entirepetroleum andnatural gas reserves.[1]
These GNPC prospected in tenoffshore blocks betweenAda along the easterninternational border of Ghana and in theTano River Basin and in theKeta Basin. In 1989, GH₵64.9 million (US$30 million) was spent drilling wells in the Tano basin, and on 21 June 1992, an offshore Tano basin well produced about 6,900 barrels (1,100 m3) ofcrude oil daily.[1]
In the early 1990s, GNPC reviewed all earlier crude oil and natural gas discoveries to determine whether a predominantly local operation might make exploitation more commercially viable. GNPC wanted to set up afloating system for production, storage, off-loading, processing, andgas-turbine electricity generation, hoping to produce 22 billion cubic feet (620,000,000 m3) per day, from which 135 megawatts of power could be generated and fed into the national and regional grid. GNPC also signed a contract in 1992 withAngola's state oil company,Sonangol Group, that provides for drilling and, ultimately, production at two of Sonangol's offshoreoilfields. GNPC was paid with a share of the crude oil.[1]
TheTema Oil Refinery in Ghana underwent the first phase of a major rehabilitation in 1989. The second phase began in April 1990 at an estimated cost of GH₵77.8 million (US$36 million). Once rehabilitation was completed, distribution ofliquified petroleum gas was to be improved, and the quantity supplied was to rise from 28,000 to 34,000 barrels per day. Construction on the new Tema-Akosombo oil products pipeline, designed to improve the distribution system further, began in January 1992.[1]
The pipeline was to carry refined products fromTema to Akosombo Port, where they will be transported acrossLake Volta tonorthern regions. Distribution continued to be uneven. Other measures to improve the situation included a GH₵60.5 million (US$28 million) project to set up a national network of storage depots in allregions.[1]
The Tema Lube Oil Company commissioned its new oil blending plant, designed to produce 25,000 tons of oil per year, in 1992. The plant was to satisfy both North Ghana and Ghana's requirements for motor andgear lubricants and 60% of the country's need for industrial lubricants, or, in all, 90% of Ghana's demand for lubricant products. Shareholders perequity included state-owned Ghana National Petroleum Corporation, and the 100% state-owned national insurance company,Social Security and National Insurance Trust (SSNIT).[1]
Ghana'sJubilee Oilfield which contains up to 3 billion barrels (480,000,000 m3) ofsweet crude oil was discovered in 2007, among the many other oilfields in Ghana.[2]Oil and gas exploration in Ghana is ongoing, and the amount of both crude oil and natural gas continues to increase.[3]
Real estate projects such asPetronia City have begun in hopes of integrating new infrastructures in Ghana and taking advantage of this discovery.[4]
The Ghanaian government, indicated that the country could expand its reserves up to 5 billion barrels (790,000,000 m3) of oil inreserves within a few years.[5]
The expected annual tremendous inflow of capital from crude oil and natural gas production into the Ghana economy began from the first quarter of 2011 when Ghana started producing crude oil and natural gas in commercial quantities in 2011.[6] At the end of 2012, declining productivity at one of the country's largest oil projects, theJubilee oil field, led to a decline in revenues for the government, who had budgeted for oil revenue of more than $650 million.[7] The corresponding shortfall was more than $410 million.[7] The oil firm blamed the decline on “sand contamination of the flowlines that carry the oil from the underwater wells” into the storage facility on the surface.[7]
In the first and second financial quarters of 2013, Ghana produced 115,000-200,000barrels of crude oil per day and 140 million-200 millioncubic feet ofnatural gas per day.[6] The 100% Iranian state-owned oil companiesNational Iranian Oil Company andIranian Offshore Oil Company, andSingapore Petroleum Company withVetro Energy andPetroSeraya of Singapore have declared interests to provide assistance in construction ofoffshore platforms anddrilling rigs for Ghana's state-owned oil company, Ghana National Petroleum Company on rapidly developing Ghana's oil and gas infrastructure and industry as Ghana aims to further increase output of oil to 2 million barrels per day and gas to 1.2 billion cubic feet per day with an expected annual generating revenue ofGH₵140.7 billion (US$65 billion) in 2014.[8][9]
Ghana is believed to have up to 5 billion barrels (790,000,000 m3) to 7 billion barrels (1.1×109 m3) of petroleum in reserves,[5] which is the sixth largest in Africa and the 25thlargest proven reserves in the world and Ghana has up to 6 trillioncubic feet ofnatural gas in reserves.[10] Ghana's experience with the oil and gas industry has been more complex than is often assumed.[11] Recentresearch shows that the challenges and prospects of the oil and gas industry go beyond the often discussed issues about macroeconomic stability to pressing current concerns about energy. This research shows the possibility that the rents from oil and gas can be used for social change in Ghana.[12]
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