GNPC

CONFERENCE ON OIL ANDGAS ORGANIZEDBY ICA (GHANA) A PRESENTATION

by

P. K. OSEI-SASU Chief Accountant Ghana National Petroleum Corp.

26th October 2010

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HISTORY OF OIL EXPLORATION

Petroleumhas been with us for a long time. A few examples are:

450BC - Herodotus described oil pits near Babylon 325BC -Alexander the Great used flaming torches of petroleumproducts to scare his enemies c100AD - Plutarch described oil bubbling from the ground near Kirkuk in present day Iraq 347AD - Chinese reported to have drilled holes in ground using bamboo to extract oil 1264 - Marco Polo recorded visiting the Persian city of Baku, on the shores of the Caspian Sea in modern Azerbaijan, he sawoil being collected fromseeps for use in medicineand lighting.. 1500s -Oil fromseeps in the Carpathian Mountains in Poland was burned in street lamps to provide light in the Polish town of Krosno.

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COMMERCIAL WELL

Modern drilling is credited to Edwin Drake who drilled an oil well 1857 in Titusville, Pennsylvania.

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PETROLEUMTHEORIES

In the mid 1800s, William Logan, first Director of the Geological Survey of Canada, recognizedoil seeps associated with the crests of convex-upward folded rocks and employed a geologist, Thomas Hunt, to formalize his "anticlinal theory."

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Anticline

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PETROLEUMTHEORY

It took until the 1920s for explorers to realize that hydrocarbons could occur in situations where no anticline was preserved.

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STRATIGRAPHIC

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PETROLEUM EXPLORATION IN GHANA

EXPLORATIONHISTO RY INGHANA
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Petroleumexploration started inGhana in1896. Initial Phase: SecondPhase: ThirdPhase: 1896 1969 19701984 1985 2007

BuildingInstitutional Capacity, SetupofGNPC

Intensive DataAcquisition, StudiesandDrillingActivities

CurrentPhase: 2008 ToDate

PostDiscovery , Development andProduction
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EARLY EXPLORA TION COM PANIES

West Africa Oil and Fuel Company (WAOFCO) -1896 1903 Socit Franaise de Petrole, A French company, -1909 and1913. African and Eastern Trade Corporation (a subsidiary of UAC) , onshoreTano -1923 and 1925. GulfOil Company -OnshoreTano Sovietand RomanianGeoscientists

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Amoco Petroleum - Saltpond Oil Field in 1970. Volta Petroleum Company discovered North T ano Oil and Gas Field in the T ano basin. Others with gas and oil shows

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In 1999, Hunt Oil Company found oil in deepwater. Hunt Oil declared the find non-com mercial and subsequently pulled out in 2002. Dana Petroleum Plc also found heavy oil and noncomm ercial Other com panies such as Nuevo Energy Com pany, AGIP, Diamond Sham rock, Devon Energy and Fusion Oil (W est Oil), all undertook exploration activities in Ghanas coastal and offshore sedimentary basins during this period.

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STEPS IN FINDING, DEVELOPING AND PRODUCING OIL AND GAS

1. DataReviewofinterestedacreage 2. Bid on oil and gas leases (Apply for a lease and Negotiate for Agreement) 3. seismic dataacquisition,processing&Interpretation 4. Drill exploratorywells ( success&Dryhole cases) 5. Development&productionstrategies 6. Drill developmentwells fromthe productionplatform 7. Produceoil andgas

OFFSHORE SEISMIC SURVEY

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Seismic Exploration onshore

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3-D Seismic

Core Photos

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SEDIMENTARY BASINS OF GHANA AND

DISCOVERIES

Four Sedimentary basins Three Offshore and two Onshore (Tano & Keta), One Inland basin V oltaian Basin

Offshore Basins 52,000Km La Cote dvoire Tano(including CTPSub-basin) Central (Saltpond) basin Accra/Keta Basin

Onshore Basin - 103,600 Km Voltaian Basin

O RA NTO

w o l l u T

s o E m N s I o K

SO PC L

P O S A G

VANCO

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Current Companies Involved in Exploration Investment in Ghana

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Kosmos Energy AnadarkoPetroleum Afren TullowOil SaharaEnergy GASOP Oranto SOPCL ENI Hess Corporation Vanco/Lukoil

E &P ACTIVITIES IN GHAN A

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Discoveries In Ghana :
1. W est & Central Tano 2. Cape Three Points (CTP-1X) 3. North & South TanoFields 4. W est Cape Three Points (WCTP-2X) 5. Saltpond 6. Jubilee 7. Odum 8. Ebony 9. Mahogany Deep 10. Tweneboa 11. Dzata 12. Owo-1

THE JUBILEE FIELD

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DEEPW ATER T ANO AND WEST CAPE THREE POINTS BLO CKS

Tullow Oil Kosmos Energy Anadarko PetroleumCorporation Sabre Oil and Gas E.O. Group GNPC

HISTORY

June 2007: Mahogany-1discovery August2007: Hyedua-1discovery 5.3km SWof M ah-1 Extends Mahoganyaccumulation 361mtotal gross oilcolumn NownamedJubilee Field February 2008: Odum-1discovery 13km E. Mah-1.60mgross oil column Extensiveandlarge further prospects Other active operators inneighbouring blocks
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JUBILEE FIELDS
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(DEVELOPMENT PLAN)
Exploit 278 MillionBarrel Reserve 120,000 Barrel/DayOil Production 120 MMSCF/DayGasProduction Drill 17 wells (9productionwells,2gasinjectionwells, 6waterinjectionwells) Wellstied back via subsea infrastructureto FPSO mooredinthe Field

PHASEDPRODUCTIONOF FIELD Phase 1production startsin4th Q uarter2010

Phase 2production startsin2013

Additional infrastructure required 240,000Barrel/DayOil Production 240MM SCF/DayGas Production

Gasproduced fromthe field willbepiped to Shoreor injected.

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DEVELOPMENT PLAN
Offshore loading to shuttle tanker

FPSO

Gas Re-injection

W ater Injection
Production Cluster ProductionCluster

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GAS TRANSMISSION & PROCESSING PROJECT

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Gas Transportation & Processing Project

Concept
Gas Plant LPG Buoy

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CONCLUSION

Ghana has to develop the requisite human resource capacity, needed for the sustainable development of this emerging industry. Accountants should not be on the sidelines, our place in thecentrestage. Let us participatewith both hands. Oil discovery is a comfort even to the rich. While the poor looks at it as comfortable pleasure, the rich looks at it as comfortable treasure.
-P.K.Osei-Sasu

CONTACT DETAILS
NAME: TEL: Office.: EMAIL: P . K. OSEI-SASU GNPC, Tema 0244508449 0303-206020 pk.oseisasu@gnpcghana.com koseisasu@yahoo.com