Ghana: Jubilee Oil Field Partners Commit To Raise US$704 Million Towards Decommissioning In 2036

Ghana has started the processes for the Jubilee Oil Field Decommissioning which is about twelve years away by signing an agreement with all the partners involved in the operation of the field.

The decommissioning of the field is expected to cost about US$704 million and for this reason, Ghana and Jubilee partners have consented to create a Trust Fund where monies could be lodged by the partners based on the Petroleum Agreement covering the field and used for the decommissioning of the field in 2036.

Last Monday, officials of the Ministry of Finance, Bank of Ghana, Petroleum Commission and Jubilee partners namely Tullow Ghana Ltd, Kosmos Energy, Petro SA and the GNPC convened at the Ministry of Energy to sign agreements to that effect.

Speaking before the signing of the agreements, the Chief Director for the Ministry of Energy, Mrs. Wilhelmina Asamoah said despite the several challenges along the way, the relevant stakeholders remained focused and would work hard towards the realisation of the huge landmark ahead.

The sector Minister, Dr. Prempeh noted that the successful establishment of the Fund and the effective discharge of obligations by the contractor parties and trustee would ensure the availability of adequate measures for decommissioning the Jubilee Field upon reaching the end of its operational life.

“This will address environmental, health and safety concerns and facilitate the restoration of lands affected by petroleum operations conducted in the Jubilee Field,” he stated.

The Minister further paid tribute to all who played varying roles on this important journey.

In 2019, Tullow Ghana Limited notified the Ministry of Energy of the necessity to initiate the fulfilment of the Conditions Precedent for establishing the Jubilee Decommissioning Trust Fund, as stipulated in the Unitisation and Unit Operating Agreement (UUOA).

Dr. Prempeh noted that the appointment of the Bank of Ghana as Trustee for the Decommissioning Fund sets a crucial precedent for decommissioning procedures in all other producing fields in Ghana.

“As stewards of state institutions and industry entities, we bear the responsibility to ensure the restoration of affected lands at the conclusion of the exploration and production life of an oil field, and this ceremony marks an important milestone in the realisation of this important duty to the good people of Ghana” the Minister noted.

Source: https://energynewsafrica.com