Ghana Jubilee Field to probably natural flare gas starting next month

Dated: January 27, 2014

Ghana will probably start flaring natural gas at the offshore Jubilee field next month to relieve pressure at the deposit operated by Tullow Oil Plc. (TLW)

The Environmental Protection Agency will allow the flaring because the pressure has swelled and will determine a fine for the Jubilee partners later, Kojo Agbenor-Efunam, deputy director of oil at the regulator, said in an interview in the capital, Accra, today. London-based Tullow has been reinjecting gas and limiting production to about 100,000 barrels a day because of delays in opening a gas processing plant.

“Jubilee’s reservoir has reached a level where it is not safe to continue re-injection of gas,” Agbenor-Efunam said. “We met with all stakeholders and Jubilee partners yesterday and had to agree to the gas flaring which is likely to commence in mid-February.”

Tullow will miss out on $100 million of sales this year because of the delays at the Ghana Gas Co. processing plant, Chief Executive Officer Aidan Heavey said in an interview on Jan. 15.

The partners will be allowed to burn off about 40 million standard cubic feet of gas daily until the gas plant is ready in April or at the latest, September, he said. China Petroleum & Chemical Corp. is building the facility.

Deputy Petroleum Minister Benjamin Dagadu said the Jubilee partners also discussed cutting production levels if necessary.

Credit: Ekow Dontoh / Bloomberg
Source: http://dilemma-x.net/2014/01/27/ghana-jubilee-field-to-probably-natural-flare-gas-starting-next-month/