Consider onshore oil exploration

Page 34 (lead) June 4/2008

Story: Charles Benoni Okine

VICE-President Alhaji Aliu Mahama has asked oil exploration companies to consider onshore exploration of oil in the country.
He said there were credible reports of large volumes of oil deposits in the sandstone areas in the country such as Brong Ahafo, Volta and Northern regions.
Alhaji Mahama made the call when a delegation from one of the biggest oil companies in Russia, Lukoil Oil Company, paid a courtesy call on him at the Castle, Osu, yesterday.
The company, which is currently in partnership with Vanco Oil, an oil exploration firm at Saltpond, wants to have its own block to enable it start its exploration activities.
It has also announced its preparedness to commit $100 million as its initial investment in the sector and subsequently spend up to $1 billion in social development projects in the country as part of its contribution to building a viable economy.
During the First Republic, Russian companies which were drilling wells for water gathered credible evidence that Ghana had prospects of onshore oil.
Since the discovery of oil in commercial quantities by Kosmos Energy from Texas, United States of America (USA) and Tullow from the United Kingdom, many other companies in the business continue to flock into the country for blocks to enable them undertake exploration.
Alhaji Mahama said Ghana was a peaceful and stable country and assured investors that their investments would be safe.
He said frantic efforts were underway to finalise institutional arrangements that could guide the use of oil revenues to the benefit of the country.
The Deputy Minister of Energy, Mr Kwame Ampofo-Twumasi, for his part said although Ghana had no data on the onshore oil deposits, reports by the Russians to that effect were credible enough for companies in the sector to venture into.
He said most of the wells that were dug by the Russians had been capped and noted that when some of the companies from that country were allowed in, they would release the data for further work to be done on them.
Mr Ampofo-Twumasi said Lukoil was engaged in talks with the Ghana National Petroleum Company (GNPC) to obtain its own block either in the western or central blocks.
Mr Andrey R. Kuzyaev, President of Lukoil Overseas Holding Limited, said the company was highly committed.
He said the company was determined to make huge investments into the oil business in the country and noted that with its rich experience it was determined to begin operations as soon as it was granted its own block for exploration.
Mr Kuzyaev said the high level of peace and stability in the country made Ghana a safe haven for investment and added that it was the reason for Lukoil’s intention to invest an initial amount of $100 million in the exploration business.