GTUC / COVENTRY UNIVERSITY POSTGRADUATE COMPUTING PROGRAMMES

PROJECT BRIEF Student Name: AKOWUAH AKWASI GYAMFI Course: MSc. OIL AND GAS MANAGEMENT Date: 25th JANUARY, 2013 Supervisor Name: MR. JOHN E. ESHUN Project Title: HARNESSING THE ASSOCIATED NATURAL GAS FROM GAS FLARING INTO POTENTIAL SOCIO-ECONOMIC AND ENVIRONMENTAL BENEFITS FOR THE PEOPLE AND COMMUNITY OF ATUABO This project brief is part fulfilment of the individual project. It has been approved by the project supervisor. The brief consists of the following Introduction Extent of Subject Area Research Element Resources Required Gantt Chart (please tick)

Students Signature: Date: Supervisors Signature: Date:

Use this sheet as the cover for your Project Brief and submit to the Graduate School Office, by ______________ at the latest.

Ghana Technology University College Graduate School & Coventry University

MSc. OIL AND GAS MANAGEMENT

PROJECT BRIEF ON A THESIS TITLED

HARNESSING THE ASSOCIATED NATURAL GAS FROM GAS FLARING INTO POTENTIAL SOCIO-ECONOMIC AND ENVIRONMENTAL BENEFITS FOR THE PEOPLE AND COMMUNITY OF ATUABO Submitted by AKOWUAH AKWASI GYAMFI Project Supervisor: MR. JOHN E. ESHUN January, 2013

PROJECT BRIEF OUTLINE: INTRODUCTION EXTENT OF SUBJECT AREA RESEARCH ELEMENT RESOURCES REQUIRED GANTT CHART

1.0 INTRODUCTION Gas flaring is a widely used practice for the disposal of natural gas in petroleum producing areas where there is no infrastructure to make use of the gas. The companion procedure called venting is the release of gas without combustion. Frantic efforts are being made by the Ghanaian government to put a gas infrastructure gas plant at Atuabo to curb and control the gas flaring activities offshore Ghana Jubilee fields and also harness this resource to address some social, economic and environmental challenges associated with flaring gas. This chapter espouses the background of the study, statement of problem, research question and objectives, scope of the study and significance of study.

1.1 STATEMENT OF THE PROBLEM

Global warming poses a major threat both to the environment and to global development. It is caused by the excessive build-up of heat trapping greenhouse gases in the Earths atmosphere in particular carbon dioxide emissions from the burning of oil, gas and coal climate change threatens virtually every segment of the biosphere and human society. Polar ice and mountain glaciers are already melting, leading

to rising sea levels, while at the same time climate fluctuations are bringing increasingly severe droughts, floods and storms around the world. Several literatures argue that oil provides 40 to 43 percent of all

energy used by the world. Oil and coal each account for 40 percent of global warming emissions from fossil fuels worldwide. It is therefore imperative for all oil producing countries to enact environmental friendly laws to streamline the activities of international oil companies, so as to help check the potential disaster that stare us in our faces.

Analyzing the needs of the local residents, Ghana has to review its legal framework, specifically the Petroleum Exploration and Production Law passed in 1984 to reflect transparency in the management of the oil as well as adequately compensating local residents whose source of livelihood would be affected. Under the existing law, companies involved in the exploration and production of oil are to pay royalties of 5 per cent to the government as well as interest and income tax of 35 per cent (Accra Daily Mail, 2008). At this rate, the country as a whole stands at a disadvantage as a beginner in the industry compared to Norways 78% petroleum tax on oil companies when actual production started in the early 1970s (Statoil, 2009).

The research work seeks to explore how gas flaring at the jubilee fields will be curtailed through deliberate policies by government to harness the untapped resource into economic viable venture without necessarily impacting on climate change.

1.2 RESEARCH QUESTIONS Do national institutions have the necessary mandate and capacity to enforce compliance of environmental laws involving oil and gas companies?

 What immediate potential benefits will the gas processing plant do to improve the local economy of the people as well the national economy when it comes on stream? Do the local people have the requisite skills and capacity to get jobs to compensate for their threatened source of livelihood?

1.3 RESEARCH OBJECTIVES This research work seeks to: Assess whether there is a strong and sustainable framework that would guide the behaviour of oil companies as far as environmental pollution is concerned. Access the potential socio-economic benefits of the gas infrastructure project put in place by the government of Ghana at Atuabo.

1.4 SIGNIFICANCE OF THE STUDY Natural resource management undoubtedly has been a subject of increasing debate particularly in emerging economies whose economies rely on natural resource extraction and export. As countries find oil and gas in commercial quantities, it is expected that their economies would receive a massive boost which will translate into better living conditions for their citizens. Also, it is equally important to emphasize the point that measures be put in place to curb the emissions of the green house gases that are likely to emit into the atmosphere as a result of the gas flaring activities in most of the oil production fields including Ghanas jubilee field. The benefits to be derived from the gas infrastructure project among other things include, delivery of natural gas and liquefied petroleum gas which can be sold on the local and international markets and in addition deliver dry gas for power generation in Ghana, the

generation of employment and training opportunities directly in the onshore gas industry and the generation of opportunities indirectly through service, supply and support industries. Again, the rapid development of the districts in terms of infrastructure; and economic benefits from the enhanced opportunities for new and small to large enterprises including pharmaceuticals and fertilizer industries will all come about as a result of this all important project.

1.5 LIMITATIONS OF THE STUDY The researcher anticipated a lot of limitations to be encountered in the collection of data as the work itself are strictly time bound. Secondly, availability of data, financial constraints, and reluctance on the part of some of the respondents to fully respond to some of the questionnaires was quiet herculean. Limitation by the scope i.e. Atuabo community distance to the researcher and the sample size was another hurdle faced by the researcher.

1.6 SCOPE OF THE STUDY AREA This study samples opinions from major stakeholders concerned with the topic under discussion. Among such institutions are the Ellembelle District Assembly, Inhabitants of Atuabo, Ghana National Gas Company (GNGC/Ghana gas), Petroleum Commission, Ministry of Energy and the Environmental Protection Agency. These organizations were carefully chosen due to their indepth understanding, knowledge and mandate on the subject matter. Ghana gas an agency of state under the Ministry of Energy mandated to carry out the construction of the gas processing plant. Among some of their functions include: Own, manage and develop a national network of gas pipelines and gas treatment and storage facilities; acquire by purchase or otherwise, construct, establish, manage, operate and maintain and otherwise deal with all gas transmission

and processing facilities, works, buildings, conveniences and other systems necessary to gather, transport, treat or store gas. Hence their views are very critical to making this research work viable.

1.7 ORGANIZATION OF THE THESIS This thesis is organized into five chapters. Chapter one offers an introduction in which the background is clearly outlined. Also captured in chapter one is the statement of the problem, objectives and research questions, significance of the study and description of the study area. Chapter two dealt with the introduction, theoretical framework, gas flaring and green house gas emissions, review of gas flares in Ghana and objectives and importance of the WAGP and the Ghana Gas processing plant. Also, construction of processing plant and onshore pipeline, livelihood and the rural poor, natural resource management in Ghana, sustainable development concept, description of gas processing plant and conceptual framework. Chapter three treated introduction, research methodology including research strategy, design and method, qualitative research approach and its limitations and population and sampling procedures used. Ethical consideration and reliability and validity were also used. Chapter four presented, analyzed and discussed the findings while chapter five winded up with conclusion and recommendation.

1.8 RESEARCH ELEMENTS It was hoped that most of the challenges and other issues in relation to gas flaring needs to be looked at critically. A facility is being constructed at Atuabo to mitigate the negative impact of gas flaring and rather harness this resource into potential socio-economic and environmental benefits for all Ghanaians. Thus the outcome of this study was somehow able to assert and

further established is one of the best ways in solving the negative impacts of gas flaring activities and also afford the country the opportunity to chart a sustainable path of development.

1.9 RESOURCE REQUIRED Human Resource: Any project without the support of human resource can bring about the failure of the project. The researcher engages some people who served as the respondents to questionnaire. Also researcher engaged three people who help in gathering and collecting all the questionnaires that was administered. Material Resource: As in the material resource researcher needed to gather some stationary and also other documentation like Article, journals, etc. Although there were few challenges but was able to lay my hands on majority of them which made my research successful Financial Resource

There was also the need to make some other financial commitments. With reference to the thesis proposal submitted the researcher budgeted an amount of two thousand Ghana cedis only (GHS2, 000) to cover transportation, data collection, printing binding and the purchase of other related documents and articles. At the end of the research it cost only One thousand five hundred and fifty Ghana cedis (GHS1, 550.00). Below is the detailed of the cost incurred? Transportation GHS980 Data collection GHS220 Printing and binding GHS150 Purchase of other related documents and articles 100 Miscellaneous 100

TOTAL GHS1, 550.00

1.9.1 CONCLUSION To illuminate the conclusion, Researcher worked through this study guide by necessity of answering research question. The thesis is about harnessing the associated natural gas from gas
flaring into potential Socio-economic and Environmental benefits for the people and community of Atuabo. It also took turns to identify and understand plausible measures to mitigate these

practices. Thus, the study is meant to find out if the main stakeholders would come up with better answers to the problems connected to gas flaring and production if they put the adequate infrastructure in place to harness this socio-economic resource.

GANTT CHART FOR THE THESIS - 2012

Task
Introduction Literature Review Methodology/ Research design Data collection Analysis Conclusion/Recomendation Submission of thesis Oral defense of thesis Final submission of thesis

Start date
5-Sep 25-Sep 20-Oct 21-Nov 30-Nov 20-Dec 7-Jan 17-Jan 26-Jan

Duration (Days)
16 20 31 8 5 9 0 2 1

End date
21-Sep 15-Oct 20-Nov 29-Nov 5-Dec 29-Dec 7-Jan 19-Jan 27-Jan

GANTT CHART OF THESIS