By J. Ato Kobbie, Managing Editor

The Jubilee Field is the name given the oil field of Ghana, where first commercial oil, named Jubilee Oil, is being produced with effect from December 15, 2010. The Unit is situated in Deepwater Tano (DT) and West Cape Three Points (WCTP) blocks, approximately 50km offshore Ghana and 130km west-southwest of the port city of Takoradi.

The field area straddles the two blocks - WCTP and DT - where successive commercial oil discoveries were made in Mahogany-1 and Hyedua-1 exploration wells during Ghana’s Golden Jubilee Anniversary year in 2007.

After the oil discoveries, the two blocks, which were close to each other, were unitized or consolidated into one field to ensure efficient and cost effective production of the oil from the two blocks. Several other successful wells following the first two have increased the reserve estimate.

Oil reserves in the Jubilee Field are estimated to be between 800 million and 1.5 billion barrels of crude oil of the highest grade. Initial production expected from the field under the first phase is 120,000 barrels a day.
The interest holdings of the Jubilee Partners were consolidated, assuming 50% for Deepwater Tano block and 50% for the West Cape Three Points block.
The Ghana National Petroleum Corporation (GNPC) exercised its option of taking additional paying interest of five percent (5%) in Deepwater Tano and two-and-a-half percent (2.5%) in the West Cape Three Points blocks.

The unitized area, Jubilee Field, therefore has Tullow Oil as Operator, with the highest stake of 34.7046%, whilst Kosmos Energy, the Technical Operator (to lead in exploration issues), just as Anadarko, each hold 23.4913%. GNPC holds 13.7500%, whilst Sabre Oil and Gas and the E.O. Group, hold 2.8127% and 1.7500% respectively.
The interest holdings of the partners determine how much contribution they make in terms of meeting the current costs of development of the field before and during production.

In the same manner, the stakes of the partners determine what profit they would eventually be reaping from the oil.

Before the unitization, Tullow Oil operated the Deepwater Tano block, where it held 49.95% interest, with Kosmos and Anadarko holding 18% interest each. Sabre Oil & Gas held 4.05%, whilst GNPC had a 10% carried interest. However, GNPC exercised its option of taking up additional paying interest following a discovery, and increased its stake to 15%.
Kosmos Energy, on the other hand, was the Operator of the WCTP block, in which it held 30.875% interest, just like Anadarko Petroleum, while Tullow Oil held 22.896% interest. The other partners in that field were the EO Group, which held 3.5%, Sabre Oil & Gas, 1.854% and GNPC having a carried interest of 10%. Here again, GNPC took up additional interest of 2.5%, to increase its stake to 12.5%.
Development of the Jubilee Field under a fast-track programme of development is acknowledged to be one of the fastest in the industry, as the floating, production, storage and offloading vessel, which would facilitate production, has been on location since May 2010 ready to flow first oil.
FPSO Kwame Nkrumah has a production and processing capacity of 120,000 barrels of oil and 160 million cubic feet (mmcf) of gas per day, with storage capacity of 1.6 million barrels of oil.