Joe Mensah (2nd left) speaking at the press conference
Gas delivery for power generation is expected to increase to over 100 million standard cubic feet per day in 2016.
This is because government has expanded the capacity of the gas- to-power system.
Joe Mensah, Vice President and Country Manager for Kosmos Energy Ghana, who made this known at a press conference in Accra recently, said Kosmos Enegry was working closely with the government to expand Ghana’s gas infrastructure to meet future needs.
He noted that in 2015, gas production averaged 144 mmscf/d; gas export to Atuabo averaged 66 mmscf/d for processing and onward flow to the Aboadze power plant to be used as fuel for power generation.
Mr. Mensah revealed that the second FPSO will be arriving in Ghana in March 2016 for the ongoing TEN field development.
Giving an account of Kosmos performance, he said in spite of the decline in oil prices on the world market, Kosmos Energy closed the year on a sound footing in all of its operations in Ghana and elsewhere.
Kosmos’ Financial Position
Mr. Mensah said Kosmos recorded $1.8 billion of liquidity and $614 million of net debt in the fourth quarter of 2015.
“This is compared to $1.9 billion of liquidity and $517 million of net debt as of September 30, 2015,” he said.
Mr. Mensah said total capital expenditure in the fourth quarter was approximately $265 million, adding that “For the full year ended December 31, 2015, total capital expenditures were approximately $780 million below previous guidance of $800 million.
“With our active hedging programme, we have been able to shield the company from some oil price volatility. Compared to our peers, Kosmos is in an enviable financial position.”
Jubilee Production and TEN Developments
He said Kosmos exceeded its Jubilee field production target of 100,000 barrels of oil per day gross, averaging 102,500 bopd in 2015.
Mr. Mensah said the TEN project also continued to progress according to plan and within budget, with first still oil remaining on target for the third quarter of 2016.
Local Content Development
“In line with our local content development, my joining Kosmos Energy Ghana made the company a 100 percent Ghanaian-staffed company. We continue to implement personal development plans aimed at investing in our human talent, building capability that enables us to promote from within, thereby enhancing the organization’s performance,” Mensah stated.
He said with the oil price expected to remain low for a longer period, 2016 is poised to be another challenging year for the industry.
“However, with another year of greater than 100 percent reserve replacement, our Ghana asset continues to demonstrate its world class quality.
“Our focus for 2016 is to maintain our financial strength through the continued strong operating performance from Ghana together with the disciplined allocation of capital,” Mr Mensah said.
BY Cephas Larbi