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Discussion Starter · #1 ·
Major setback in Ghana oil quest



afrol News, 21 October - One of Ghana's most promising deepwater offshore oil wells has turned out a flop, producing water rather than oil. The operating oil company announces it will take "lower risks" in future Ghana explorations.

The UK-based company Tullow Oil PLC has until now made numerous success announcements in its large engagement in Ghana's offshore oil search. The number of positive hits was skyrocketing and Ghana is set to become an oil producer next year, in 2011.

The Onyina-1 well, a deepwater exploration with high costs and large hopes of major oil discoveries, however turned a major flop for Tullow Oil, as the company admitted today
. The expensive exploration well offshore Ghana "encountered water bearing reservoirs" in stead of the expected oil, according to Tullow Oil.

As expectations had been high for the deepwater Onyina-1 well, Tullow Oil shares plummeted at the London stock exchange
. Brokers and analysts called the setback a "major disappointment," given the high stakes in the deepwater well.

Geological formations in the Ghanaian deepwater Tano licence, where the disappointing well was drilled, had indeed been promising. Tullow Oil had earlier published its expectations to find an estimated 700 million barrels at the prospect. The high costs with deepwater drilling were therefore accepted.

Also Ghanaian authorities had great expectations to the Tano licence, hoping it would open up for much larger investments in its deepwater zones. Tullow's failure now however will produce a slowdown in these investments.

Tullow Oil's exploration director Angus McCoss today in a statement made it clear that the disappointing development would lead the UK company to take less risks offshore Ghana. The flop would lead to a "refinement of our exploration and relinquishment strategy offshore Ghana," Mr McCoss said.

The exploration director added that Tullow's "main focus remains on the lower risk primary play" offshore Ghana, contrasting the "high risks of charging and trapping oil in this secondary play" (the deepwater Tano licence).

Tullow Oil and the other main players in Ghana's oil scramble therefore will focus on the known Jubilee, Tweneboa and Owo offshore fields
, where major discoveries will lead to Ghana's first commercial oil production next year.

However, these "low risk" fields are already relatively well explored, and few analysts expect more major discoveries here. Without major investments in new exploration areas, Ghana's oil bonanza therefore could be more limited than expected.

Nevertheless, already the confirmed discoveries and planned production is set to have a major impact on Ghana's economy. According to the latest data from the International Monetary Fund (IMF), Ghana's GDP growth in 2011 is projected at over 20 percent, mostly due to the new oil production.

By staff writer
http://www.afrol.com/articles/36801

Hhmm, it seems to be the end of oil era before it really got started. I was excited about it...and now this:eek:hno:
 

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Water Instead of ''Sweet flowing black gold!!!' Say Apple and Oranges....
What a flop!!!! Drilling all that deep, just to find H.2O at the end of it all :eek:hno:
 

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yeah, ..and it shows that Ghana won´t have as much oil as Nigeria.
They were never in a competing position....:)
The Name Ghana dosen't click with ''Oil'' to me Names like Libya,Kuwait,Nigeria,Angola,Gabon,Venezuela, are more ''oil-like'' in sounding.....:lol: Just Kidding
 

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Discussion Starter · #5 ·
They were never in a competing position....:)
The Name Ghana dosen't click with ''Oil'' to me
Names like Libya,Kuwait,Nigeria,Angola,Gabon,Venezuela, are more ''oil-like'' in sounding.....:lol: Just Kidding
haha, that was a good one!:lol:...that won´t please our Popiboy1980!
 

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And I seriously hope these companies are not over-estimating this ''oil thing'' because if they are, there's goinna be a very big disappointment for the Ghanaians.......Who already have future budgets in the planning.....I just hope they really find enough oil in the other wells...Too much at stake already. :(
Btw: Aren't they supposed to start pumping/Exporting oil this month or early next?
 

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Discussion Starter · #7 ·
And I seriously hope these companies are not over-estimating this ''oil thing'' because if they are, there's goinna be a very big disappointment for the Ghanaians.......Who already have future budgets in the planning.....I just hope they really find enough oil in the other wells...Too much at stake already. :(
Btw: Aren't they supposed to start pumping/Exporting oil this month or early next?
They will export at the end of 2010, it is said.
 

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Ghana has no oil.
I am sure they have a lot of Oil-Shale :lol:
Seriously, I was suprised when ''they said'' they discovered oil in Ghana some years back...To me, Ghana's geo-position looks nothing like it.
But since there is hard evidence of the oil, and they will begin exporting oil at the end of next year, YES Ghana has oil. :)
 

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I guess the militants must stand down now. :lol:
 
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