The Minister of Energy, Dr. Matthew Opoku Prempeh has signed an agreement with various partners for the decommissioning of the Jubilee Field.

The agreement, signed on Monday 25 March, 2024 includes the establishment of a Jubilee Field Decommissioning Fund.

It was witnessed by representatives of the Ministry of Finance, Bank of Ghana, Petroleum Commission, Tullow Oil Ltd, Kosmos Energy, Petro SA and the Ghana National Petroleum Corporation (GNPC).

The Chief Director of the Ministry, Wilhelmina Asamoah, in her welcome address, said despite the several challenges along the way, the relevant stakeholders remained focused, working hard towards the realisation of this huge landmark in the Jubilee Field decommissioning process.

In his keynote address, Dr. Matthew Opoku Prempeh noted that the successful establishment of the fund and the effective discharge of obligations by the contractor parties and trustee will ensure the availability of adequate measures for decommissioning the Jubilee Field upon reaching the end of its operational life.

“This will address environmental, health, and safety concerns and facilitate the restoration of lands affected by petroleum operations conducted in the Jubilee Field”, he said.

The minister further paid tribute to all who have played varying roles on this important journey so far.

In 2019, Tullow Ghana Limited notified the Ministry of Energy of the necessity to initiate the fulfilment of the Conditions Precedent for establishing the Jubilee Decommissioning Trust Fund, as stipulated in the Unitisation and Unit Operating Agreement (UUOA).

It is estimated that the total abandonment or decommissioning cost of Jubilee wells, subsea infrastructure, and FPSO in a fully developed Greater Jubilee will amount to approximately US$704 Million.

Thus, the fund aims to furnish the resources required to cover the decommissioning obligations of the Contractor Parties and guarantee their provision of sufficient security towards their liability for decommissioning costs.

He said the appointment of the Bank of Ghana as trustee for the Decommissioning Fund sets a crucial precedent for decommissioning procedures in all other producing fields in Ghana.

“As stewards of state institutions and industry entities, we bear the responsibility to ensure the restoration of affected lands at the conclusion of the exploration and production life of an oil field, and this ceremony,” he said.