ACCRA, (Xinhua) --
Partners in Ghana’s Jubilee oil field commenced a
shutdown of the production Vessel FPSO Kwame Nkrumah here on
Thursday to enable repair works on the damaged Turret Bearing on
the vessel be effected, a release has said.
according to the
release issued by operator, Tullow Oil late Thursday, the shut
down is the first of two planned for the first quarter of the
“It is also another
chance to conduct scheduled maintenance to improve process
reliability,” the statement added.
The partners had
planned a total of three shut-down periods for the year, two in
the first quarter and one in the last quarter for remedial works
on the FPSO Turret Bearing and rolling back into place.
“The first shut-down
which begins Thursday February 1, 2018 will be for an estimated
three-week period. This shut-down coincides with the planned
Ghana National Gas Company (GNGC) shutdown of the Atuabo Gas
Processing Plant. Therefore there will be no supply of gas to
the plant,” the statement added.
further stated that there would be a second shutdown starting
from March 19 also for an estimated three-week period for the
completion of works. During the second shutdown period gas
supply from the Jubilee field will be replaced by gas supply
from the Tweneboa-Enyenra-Ntomme (TEN) to GNGC, added the
society actors have expressed worry over frequent shutdowns of
the FPSO Kwame Nkrumah with the fear that the West African gold,
cocoa and oil producer would end up with huge revenue losses.
Governance analyst with Ghana Oil and Gas for Inclusive Growth (GOGIG)
Samuel Bekoe said the situation was alarming, especially in an
era of falling global crude prices.
He recalled the
shutdowns last year during which time the global prices were
low, “and did not allow us to hit our revenue targets. That was
a problem already last year.”
“This year with the
Turret Bearing and the Mooring issues it is important that as a
country, we do detailed analyses of how these frequent shutdowns
will affect the economy in general
“In terms of
building other FPSO’s we need to make sure we do not face such
challenges,” Bekoe said here on Wednesday in an interview.
Due to the
uncertainty of the global oil market, the analyst argued that it
was better to derive revenues now than to defer to the future.
However, Head of the
Oil and Gas Unit at the Ministry of Finance, Joseph Asenso
allayed the worries, explaining that since the shutdowns had
been planned earlier these were factored into revenue
projections in the 2018 budget, and Gross Domestic Product (GDP)
projections, hence there would be no revenue loss or drop in GDP
as far as projections were concerned.
“So the impact if it
stays within the time frame, then it will not be felt, but if it
exceeds, which is quite unlikely that is when will have a
problem,” Asenso indicated.
price for crude in the 2018 budget was 57.3 U.S. Dollars.
However, prices on the global stage have already hit 65 dollars
per barrel, and Asenso was optimistic that would mean revenue
overshot for the country which would be paid into the Petroleum