Tullow Ghana, Unit Operator of the Jubilee field, along with its partners - Ghana National Petroleum Corporation, Kosmos Energy, Kosmos Energy Ghana Investment, PetroSA, and GNPC Explorco - has officially signed an agreement to establish a Decommissioning Trust Fund for the Greater Jubilee Field.
The establishment of this fund marks a pivotal moment in the management of the offshore field, setting a precedent for future decommissioning efforts in the country.
The fund, aimed at facilitating the safe shutdown and restoration of the field at the end of its production life, will receive contributions from the partners in proportion to their stake in the project.
Using the global standard for responsible oil production, the decommissioning process will involve dismantling and removing essential infrastructure, including FPSOs, seabed flowlines, manifolds, suction piles, and wellheads, in accordance with industry best practices.
The initiative aligns with the requirements outlined in the Jubilee Field Unitisation and Unit Operating Agreement (UUOA), which advocates for compliance with international standards similar to those observed in regions such as the North Sea and Gulf of Mexico.
According to the Petroleum Agreements signed with the Jubilee partners, the decommissioning fund is expected to be set up when 50% of the field's resources have been depleted.
A negotiation team, comprising representatives from all Jubilee partners, relevant ministries, regulatory bodies, and legal experts, was convened to finalize the terms of the agreement.
The Bank of Ghana was designated as the trustee of the fund, with responsibility for safeguarding assets held within the fund and guaranteeing availability when needed for decommissioning obligations in the Jubilee field.
At the signing ceremony, Deputy Managing Director of Tullow Ghana, Cynthia Lumor, emphasized the significance of collaboration and responsible stewardship in managing the decommissioning process.
"This is evidence of great collaboration in action over the last few years. As a responsible operator and partner, the decommissioning process is something we take very seriously as part of our licence to operate.
"The field still has time left for its resources to be harnessed but beyond that, we consider today's ceremony very pivotal to the next stage of the field’s management.
"Tullow Ghana is committed to meeting its obligations to the fund to ensure environmental sustainability of the field."
In his remarks, Energy Minister Dr. Matthew Opoku Prempeh hailed the establishment of the fund as a triumph of determination and tenacity.
He praised the Bank of Ghana's role as trustee, emphasising its significance as a model for future decommissioning efforts in Ghana's energy sector.
The Minister reaffirmed his commitment to restoring affected lands and assets following the conclusion of the field's production cycle, underscoring the government's dedication to environmental preservation and sustainable development.
Latest Stories
-
3 confirmed dead in Ejisu-Konongo Highway collision, 1 injured
3 mins -
Fatawu Issahaku gets assist as Leicester City beat Preston to win Championship title
22 mins -
Child’s right advocate criticises state’s handling of ‘victim’ in alleged child marriage case
24 mins -
NPP has created 2.1m jobs in seven years – Bawumia
36 mins -
Akosombo Dam spillage: We’re considering a class action suit against government – Ablakwa
41 mins -
Government offers teacher unions about 70% increment in continuous professional development allowance
1 hour -
Everyone must show interest in depleting pension funds – Pensions Expert
1 hour -
African Business Heroes: African SMEs ready to compete for a share of $1.5m grant
1 hour -
My government will partner with faith-based groups in development – Bawumia
2 hours -
Joy Prime’s Prime Morning to host show at sea in May Day celebration with Ghana Navy
2 hours -
Why increase contribution rate when you can’t manage what is given you? – NAGRAT asks SSNIT
2 hours -
There are greener pastures in Ghana – Prof Owusu-Dabo
4 hours -
Myjoyonline Interview with Abubakar Tahiru: Guinness World Record Holder for ‘Most Trees Hugged In An Hour’
4 hours -
JoyNews’ Clinton Yeboah honoured at 2023 Int’l Sports Media Awards in Spain
4 hours -
14 PWDs selected for maiden Africa Health Collaborative Medicine Counter Assistant training
5 hours