Business

Tullow, Partners set up ‘Decommission Fund’ for Jubilee Field

In a significant move towards ensuring environmental sustainability and responsible resource management in Ghana’s energy sector, 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 Unitization 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 in order 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, emphasizing 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.

source: city news.com

Related Articles

Leave a Reply

Back to top button