Ghana waits on Jubilee flows

GHANA IS ON track to deliver oil from the Jubilee field from December this year, with initial output doubling to 250,000 bpd by 2013, according to the country's vice president.

"The first oil will be delivered in December this year," said Vice President John Dramani Mahama.

"The development of the second phase, we anticipate, will raise the production from 125,000 bpd to approximately 250,000 bpd. It will be some time between 2011 and 2012 to bring it into production, but certainly by 2013, Ghana should be producing 250,000 bpd," he added.

Ghana's refusal last year to approve the sale of Kosmos' share in Jubilee - a 30.875 per cent interest in The West Cape Three Points Block and an 18 per cent stake in Deepwater Tano Block - has shocked some international investors who see it as unwarranted state interference.

But Mahama insisted Ghana had a sovereign right to manage the resources and was keen for the state to secure a greater stake in the revenues than that negotiated by the previous government ousted in the 2008 elections.

He estimated that around 30 per cent of oil revenues would accrue to the Ghanaian state on the current basis.

"We think that in carrying out this transaction it should be possible in the negotiations that take place with a new partner for the government to acquire some more shares out of that Kosmos pot," he said.

South Korea's Korean National Oil Corporation (KNOC) has declared an interest and India's Oil & Natural Gas Corporation is also in the running.

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