The Chief Executive Officer (CEO) of Tullow Oil Group, Rahul Dhir has given a firm assurance of the Group’s full commitment to Ghana’s local content policy.
According to the visiting CEO, he is always looking forward to working with the Ghanaian human resource personnel when it comes to the oil industry stressing “workers from Ghana can be compared to anyone from the world, and it’s always great to work with them.”
Mr Dhir also indicated preparedness to closely work with regulators in implementing the policy.
Touching on investing in Ghanaians, he stressed that local content remains a vital part of Tullow’s work in Ghana.
“As part of the recently started drilling program, the contractors hired by Tullow and its partners have committed to spend over $27 million with indigenous suppliers and will employ in excess of 300 Ghanaians.”
He also disclosed that a fabrication work for the Jubilee South East project worth over $15 million will be carried out in Ghana, building on experience and expertise built up during the development of the TEN fields.
Tullow Oil has also indicated it has begun engaging the government on plans to approve the importation of Liquefied Natural Gas for power production and other related use. Tullow Oil together with other partners on the Jubilee fields have all raised concerns about how the initiative could affect their operations.
This is because of the huge volumes of gas deposits that some of the operators are “sitting” on and they also have the arrangement to supply the gas to Ghana Gas Company and the Ghana National Petroleum Corporation (GNPC).
Speaking to JoyBusiness, Rahul Dhir said he is encouraged by the initial response from the government on concerns raised, after engaging the President, the Energy Minister and other stakeholders in Ghana.
Tullow and its partners have already delivered 150 billion cubic feet (bcf) of Foundation Gas at no cost, with a further 50 bcf left to be provided on the same basis.
Furthermore, Tullow and its partners have also submitted a 10-year Firm Gas supply proposal to deliver over 500 bcf of low cost and reliable gas to Ghana for the long term.
Visit to Ghana
The Group Chief Executive Officer of Tullow Oil, Rahul Dhir has been in Ghana on a working visit of which he Mr met His Excellency the President, the Energy Minister, the Finance Minister, and other leading Ghanaians.
During his meeting, Mr Dhir pointed out Tullow’s recent $1.8bn bond offering which concluded successfully last month. The success of this offering was not only a validation of Tullow’s strategy but also a strong endorsement of Ghana as a leading investment destination in Africa.
Tullow Ghana’s investment plans
The Group CEO of Tullow and its partners will invest over $4 billion between 2021 and 2031. Mr Dhir said it is “an ambitious ‘Value Maximisation Plan’ that will deliver consistent revenue to the government of Ghana and value to the nation.
Tullow’s initial analysis suggests that the benefit to Ghana from this investment programme will be substantial, manifested through a combination of oil entitlements, government royalties, oil company tax payments and gas sales.
The substantial benefit to Ghana highlights the continuing contribution of the oil & gas industry to the development of both the global economy and local economies.
Energy Transition for Tullow Oil
Tullow Oil has also announced recently that it is committed to net Zero-emission by 2030, meaning, the ceasing flaring from our operated FPSOs in Ghana, reducing the carbon footprint of our operations and offsetting the remainder of its carbon emissions.
Natural gas is globally recognised as an important low carbon energy source, the Group CEO noted that “natural gas production from Jubilee and TEN will further support the development of Ghana’s economy while minimising the climate impact.”
Mr Dhir, reflecting on his trip to Ghana expressed gratitude to the Government of Ghana for their strong support, reiterating Tullow’s continuous commitment to a long-term partnership with Ghana.
He also shared how Tullow is responding to the interlinked challenges of climate change, the energy transition and supporting economic growth and prosperity.
As a start, Tullow recently committed to being Net-Zero by 2030: that means ceasing flaring from our operated FPSOs in Ghana, reducing the carbon footprint of our operations and offsetting the remainder of its carbon emissions.
Critically, natural gas production from Jubilee and TEN will further support the development of Ghana’s economy while minimising the climate impact.