Between 20,000 and 80,000 barrels of crude oil are being pumped per day as part of the ongoing test run of equipment at the Jubilee Field. The quantity will be increased to 100,000 barrels when mainstream production is attained by the end of the first quarter of 2011. The Head of Economic Evaluation at the Ghana National Petroleum Corporation (GNPC), Mr Kwame Ntow, made this known to the Daily Graphic in Takoradi over the weekend. He said production would increase gradually over approximately six months to a plateau level of 120,000 barrels per day. Mr Ntow said the first phase of the Jubilee project had been successfully completed for production off the coast of the country at the cost of $3.35 billion. The cost excludes that for the production platform, the FPSO Kwame Nkrumah, which is currently on lease at $393,000 a day, with an open option to partners for outright purchase after two years. The FPSO, which is currently receiving the gradual flow of oil, is operated by MODEC, which caters for its maintenance and other activities. Mr Ntow said there had been some savings on the cost of development and production after the GNPC had pushed for the utilisation of the project, since the blocks were located in the same area. He said it would have been more expensive if the players had unilaterally been allowed to develop their own fields, An official source at Tullow, the lead operators of the project, told the Daily Graphic that in-country infrastructure work in Accra and Takoradi was essentially complete for both the project installation and subsequent production. It said the major sub-sea equipment installation was also completed, including the laying of all flow lines and control umbilicals and the deployment of all sub-sea trees on the Phase I wells for production. The project is said to be the fastest ever full scale deep water development and a major collaborative effort between the field partners and contractors, both local and foreign. It is also said to have set a new industry benchmark for the world to follow. More than 40 kilometres of sub-sea flow lines have been connected to 17 oil production along with water and gas injection wells to the FPSO. Aside from that, about 28 kilometres of umbilicaIs will control the wells and ensure optimum production, amidst the use of the latest technology. The partners include the government of Ghana through the GNPC, Tullow Ghana, Cosmos Energy, Anadarko, Sabre and the E.O. Group. In a related development, the Tema Oil Refinery (TOR) has been assured of constant supply of crude from the Jubilee Field under the domestic supply obligation (DSO) aspect of the contract. Mt Ntow said TOR would also receive part of a mandatory 18.75 per cent of the crude, made up of five per cent royalty to the State and the State's share of 13.75 per cent through the GNPC as a member of the partners. He said TOR's agreement in lifting crude oil from other countries would however still hold, noting that the supply from the Jubilee fields would be made available upon request from the refinery at the world market price. Source: Daily Graphic