Saltpond Oil Field
Encyclopedia
Saltpond Oil Field is an oil field
off the coast of Ghana
. The field was discovered in 1970 by Signal-Amoco
Consortium. The field is currently managed by the Saltpond Offshore Producing Company (SOPCL), Ghana's oldest producer of crude oil.
, in the Central region
of Ghana. It is located about 13 kilometres (8.1 mi) off the coast of Saltpond
in the northern-central area of the Takoradi Arch
, in water depth of 80 feet (24.4 m). It extends over an area of 5 square kilometres (1.9 sq mi).
(GNPC) licensed Signal-Amoco Consortium to operate in Ghana's territorial waters
. The initial appraisal of the field showed that the well would produce 3600 oilbbl/d of oil.
In 1976 Amoco relinquished the concession, citing the field as non-commercial. The concession was reassigned to Offshore Hydrocarbons Ltd., which later entered into a development farmout with Agri-Petco of the United States. In 1977–1978 Agri-Petco drilled six appraisal wells from a centrally located jackup rig
called Mr. Louie
. After the drilling, the jack-up was converted into a production unit and the field was put onstream in October 1978.
In 1984, the field was reassigned to Primary Fuels Inc., which took over the operation for a year. In July 1985 GNPC took over the operation of the field.
From 1978 to 1985 the maximum oil production was 4800 oilbbl/d of oil. When operation stopped in 1985, the volume of production was 580 oilbbl/d. The estimated percentages of oil and gas that had been obtained from the field at the time of shutdown were 10.4% and 25%, respectively, with three of the six wells unable to produce oil.
from the Saltpond Field.
In 2002, the Government of Ghana began re-negotiating the agreement between GNPC and Lushann-Eternit Energy Ltd. The negotiations ended in 2004 with a new agreement in which GNPC's stake was increased from 40% to 45%, with Lushann-Eternit Energy Ltd. having 55%. The new agreement led to the creation of the Saltpond Offshore Producing Company, which markets the oil from the fields on the world market.
The rig-less workover could not sustain high production, resulting in a drop of about 450 oilbbl/d. In 2005, operations were suspended so the rig-less workover could be replaced. Operations resumed in April 2006 with an increase in production to 700 oilbbl/d from two wells.
In 2008, the diesel-fired generating plant was replaced by a natural gas-fired plant for utilization of natural gas from the field. This reduced production cost on the fields. A new storage vessel, MT Bonsu
, was purchased for storage of oil from the field. It replaced the previously leased storage vessel MT African Wave, which had become dangerous to operate. By other sources, the reason for termination of the leasing contract was the inability of SOPCL to pay its outstanding bills.
On 10 June 2010, GNPC announced that it pulls out of the Saltpond Offshore Producing Company.
conducted a study in which an estimated 1.2 Moilbbl and 20 Gcuft of natural gas was reported still in the field. Another study by Oil-data Wireline Services of Nigeria
in 1999 recommended a rig-less workover
for the redevelopment of the field.
The cumulative production from beginning of operations to the shut-in in 1985 was 3.752 Moilbbl of oil and 14.086 Gcuft of natural gas. The field currently produces about 550 oilbbl/d of oil.
In 2011, SOPCL was accused for leasing storage space in the MT Bonsu to its unidentified major off taker, who allegedly used MT Bonsu to bring in crude oil imported from other West African countries but supplied to the refinery at a high rate by claiming that the crude oil is imported from Brazil.
Oil field
An oil field is a region with an abundance of oil wells extracting petroleum from below ground. Because the oil reservoirs typically extend over a large area, possibly several hundred kilometres across, full exploitation entails multiple wells scattered across the area...
off the coast of Ghana
Ghana
Ghana , officially the Republic of Ghana, is a country located in West Africa. It is bordered by Côte d'Ivoire to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south...
. The field was discovered in 1970 by Signal-Amoco
Amoco
Amoco Corporation, originally Standard Oil Company , was a global chemical and oil company, founded in 1889 around a refinery located in Whiting, Indiana, United States....
Consortium. The field is currently managed by the Saltpond Offshore Producing Company (SOPCL), Ghana's oldest producer of crude oil.
Location
The oil field is located 65 miles (104.6 km) west of Ghana's capital, AccraAccra
Accra is the capital and largest city of Ghana, with an urban population of 1,658,937 according to the 2000 census. Accra is also the capital of the Greater Accra Region and of the Accra Metropolitan District, with which it is coterminous...
, in the Central region
Central Region (Ghana)
The Central Region is one of Ghana's ten administrative regions. It is bordered by the Ashanti and Eastern regions to the north, Western region to the west, Greater Accra region to the east, and to the south by the Atlantic Ocean.-Districts:...
of Ghana. It is located about 13 kilometres (8.1 mi) off the coast of Saltpond
Saltpond
Saltpond is the capital of the Mfantseman Municipal District in the Central Region of Ghana.-Economy:Saltpond is noted for offshore oil resources...
in the northern-central area of the Takoradi Arch
Sekondi-Takoradi
Sekondi-Takoradi, population 335,000 , comprising the twin cities of Sekondi and Takoradi, is the capital of the Western Region of Ghana. It is Ghana's fourth largest city and an industrial and commercial center. The chief industries are timber, plywood, shipbuilding and railroad repair and...
, in water depth of 80 feet (24.4 m). It extends over an area of 5 square kilometres (1.9 sq mi).
Original development
Saltpond Oil Field was discovered in 1970 after the Ghana National Petroleum CorporationGhana National Petroleum Corporation
The Ghana National Petroleum Company of Ghana is the state agency responsible for the exploration, licensing, distribution of petroleum related activities in Ghana.-History:...
(GNPC) licensed Signal-Amoco Consortium to operate in Ghana's territorial waters
Territorial waters
Territorial waters, or a territorial sea, as defined by the 1982 United Nations Convention on the Law of the Sea, is a belt of coastal waters extending at most from the baseline of a coastal state...
. The initial appraisal of the field showed that the well would produce 3600 oilbbl/d of oil.
In 1976 Amoco relinquished the concession, citing the field as non-commercial. The concession was reassigned to Offshore Hydrocarbons Ltd., which later entered into a development farmout with Agri-Petco of the United States. In 1977–1978 Agri-Petco drilled six appraisal wells from a centrally located jackup rig
Jackup rig
A jack-up rig is a type of mobile platform that is able to stand still on the sea floor, resting on a number of supporting legs. The most popular designs use 3 independent legs, although some jackups have 4 legs or more...
called Mr. Louie
Mr. Louie
Mr. Louie is a former self-elevating drilling barge converted into an oil platform. It was the first self-elevating drilling barge classed by the American Bureau of Shipping. As an oil platform, it operates at the Saltpond Oil Field, offshore Ghana.-Description:Mr. Louie weighs 6200 tons. Its...
. After the drilling, the jack-up was converted into a production unit and the field was put onstream in October 1978.
In 1984, the field was reassigned to Primary Fuels Inc., which took over the operation for a year. In July 1985 GNPC took over the operation of the field.
From 1978 to 1985 the maximum oil production was 4800 oilbbl/d of oil. When operation stopped in 1985, the volume of production was 580 oilbbl/d. The estimated percentages of oil and gas that had been obtained from the field at the time of shutdown were 10.4% and 25%, respectively, with three of the six wells unable to produce oil.
Operation resumption
On 18 January 2000, GNPC entered into an agreement with Lushann International of Houston, Texas, for the rehabilitation of the Saltpond Oil Field and the implementation of the rig-less workover proposal. Lushann International contracted Eternit Universal Ltd. of Nigeria for the financing of the rehabilitation works. In August 2000, rehabilitation works commenced with the repair of the Mr. Louie platform. In 2002, Oildata's programme of rig-less workover discovered obstructions in the wells which prevented workers from reaching the bottom of most of the wells. When the workover was completed, only two wells were able to produce between 480 – of oil. Lushann International was also granted the right to develop up to 400 MW of power generation facilities to commercialize natural gasNatural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
from the Saltpond Field.
In 2002, the Government of Ghana began re-negotiating the agreement between GNPC and Lushann-Eternit Energy Ltd. The negotiations ended in 2004 with a new agreement in which GNPC's stake was increased from 40% to 45%, with Lushann-Eternit Energy Ltd. having 55%. The new agreement led to the creation of the Saltpond Offshore Producing Company, which markets the oil from the fields on the world market.
The rig-less workover could not sustain high production, resulting in a drop of about 450 oilbbl/d. In 2005, operations were suspended so the rig-less workover could be replaced. Operations resumed in April 2006 with an increase in production to 700 oilbbl/d from two wells.
In 2008, the diesel-fired generating plant was replaced by a natural gas-fired plant for utilization of natural gas from the field. This reduced production cost on the fields. A new storage vessel, MT Bonsu
MT Bonsu
The MT Bonsu is a 16,000 tonne oil storage vessel that operates off the coast of Ghana in the Saltpond Oil Field. It was commissioned for operations in the field in 2008....
, was purchased for storage of oil from the field. It replaced the previously leased storage vessel MT African Wave, which had become dangerous to operate. By other sources, the reason for termination of the leasing contract was the inability of SOPCL to pay its outstanding bills.
On 10 June 2010, GNPC announced that it pulls out of the Saltpond Offshore Producing Company.
Reserves and production
The estimated initially resource in place was 34.4 Moilbbl of oil, 34.3 Gcuft of gas condensate, and 21.9 Gcuft of natural gas. After the field's operations were shut down in 1985, GNPC commissioned various geological and engineering studies to improve its knowledge of the nature of the field and to ascertain if long-term redevelopment was feasible. In 1986, BraspetroBraspetro
Braspetro was a Brazilian state company. It was founded in 1972, as a subortinated company of Petrobras, with the responsibility to find and produce oil outside Brazil...
conducted a study in which an estimated 1.2 Moilbbl and 20 Gcuft of natural gas was reported still in the field. Another study by Oil-data Wireline Services of Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
in 1999 recommended a rig-less workover
Workover
The term workover is used to refer to any kind of oil well intervention involving invasive techniques, such as wireline, coiled tubing or snubbing. More specifically though, it will refer to the expensive process of pulling and replacing a completion....
for the redevelopment of the field.
The cumulative production from beginning of operations to the shut-in in 1985 was 3.752 Moilbbl of oil and 14.086 Gcuft of natural gas. The field currently produces about 550 oilbbl/d of oil.
Incidents
In April 2003, the storage vessel MT Asterias, operating at the Saltpond Oil Field, was alleged to have gone missing with 73701 barrels (11,717,522.6 l) of oil. It was seized by its owner, the Nigerian company Ocean & Oil Limited, due to non-payment of freight charges by Lushann International. According to authorities of Ghana, Lushann International was not paid any royalties, carried interests, training allowances and annual surface rentals which were mandatory under the petroleum laws of Ghana.In 2011, SOPCL was accused for leasing storage space in the MT Bonsu to its unidentified major off taker, who allegedly used MT Bonsu to bring in crude oil imported from other West African countries but supplied to the refinery at a high rate by claiming that the crude oil is imported from Brazil.