Members of the Council of State,
Hon. Ministers,
Hon members of Parliament,
Your Excellencies, Members of the Diplomatic Corps,
Representatives of Political Parties,
Our Esteemed Traditional Rulers,
Distinguished Ladies and Gentlemen

It is my pleasure to welcome you all to this maiden broad-based consultative initiative on Ghana’s oil and gas industry. Let me acknowledge in particular, Mr Erik Solheim, Minister for Environment and International Development from Norway, and all representatives of our development partners who are here to share their experiences with us.

Ladies and gentlemen, last year, Ghana struck oil in commercial quantities estimated at 3 billion barrels while exploration still continues. There couldn’t have been better news for the jubilee Year, especially, in the face of the continually escalating price of crude oil on the world market. An oil-field in one’s own backyard provides a measure of security for socio-economic development, and enhances opportunities to reduce poverty and generally improve living conditions for all the people.

However, Nana Chairman, we also know that instead of being a blessing, oil has sometimes proved the undoing of many an otherwise happy, if not so rich, nation which come by that precious commodity. It is to avoid this slippery road that government has initiated this consultative forum to brainstorm over the next two days, to give shape to the nation’s emerging oil industry, both upstream and downstream.

To start with, the oil must be appreciated as a national asset. Therefore, it must be managed as such, and above all sectional interests. Accordingly, the purpose of this meeting is to try to determine how best to regulate and manage this asset, investing it with such international best practices as will promote economic growth and sustainable development all round, devoid of any negative environment fall out.

Government’s outlook on this discovery as a national asset must be evident in the composition of this all-inclusive gathering of stakeholders. Among us are technocrats within the oil and mining industry, both national and international; traditional rulers, who are custodians of the land; politicians across the devide; and others in academia, finance and banking, as well as public, private and civil society organisations.

Ladies and Gentlemen, as you may be aware, petroleum exploration activities began in the country, in the late 1890s around the numerous oil and gas seepages in the Half Assini area. The records show that there was a small production in the offshore Half Assini area just at the beginning of the World War II Back in the early 1970s, during the Busia regime, the Saltpond field was also discovered but did not prove commercial enough. In spite of this, it was not abandoned and is currently producing 600 barrels of oil per day.

Indeed, 75% of the wells drilled in Ghana in the past had encountered varying volumes of oil and gas. That kept the nation’s belief and hopes alive that it would strike it rich someday.

Thus, Nana Chairman, on coming to power in 2001, government proceeded to retool the Ghana National Petroleum Company to enable it to intensify its promotion of the hydrocarbon potential of the country to investors; and also accelerate its exploration activities together with international oil company partners, particularly, in the deepwater areas where there is growing evidence of a potentially large accumulation of oil and gas.

This retooling of GNPC has yielded results. Last year, GNPC and its partners, Kosmos Energy and Tullow Oil announced the discovery of significant amounts of oil in wells in the offshore Tan/West Cape Three Points Basin. While I congratulate all parties on their success, permit me to acknowledge especially the GNPC for working steadily over the years and for building adequate capacity, which has made it an effective partner to the country’s overseas partners.

Certainly, the recent find has reduced the exploration risks considerably and provided the needed boost for GNPC’s promotion efforts. Also, with the increased level of drilling activities, it is expected that more discoveries will be made in the nearest future. Indeed, just three days ago, the Chief Executive officer of Kosmos Energy, Mr Mussleman, called on me with a happy report of yet another successful strike in the company’s block.

Truly, Nana Chairman, Ghana is at the threshold of great things in the oil industry. It is indeed propitious that oil has been found at a time when the national economy is stable and enjoying international respect. Ghana is part of the West Africa province that has seen giant deepwater oil land gas discoveries such as Dalia in Angola, Bongo and Adbami in Nigeria and the Ceiba Field in Equatorial Guinea in recent times.

GNPC and its partners have mapped structures that, I am informed, contain in-place volumes of several billion barrels of oil and trillion cubic feet of gas. Still, Ghana’s sedimentary basins are grossly under-explored compared to similar basins elsewhere in the world. For instance, only one shallow well has been drilled, and just 200 kilometres of seismic data has been acquired over the Voltarian Basin, covering over 103,000 square kilometres.

In this year’s budget, government had made provisions for further studies and work in this huge Inland basin. Government will continue to support the efforts of the National Oil Company and the international partners in their exploration activities.

I am therefore using this occasion to invite all levels of investors in the oil and allied industries to invest in Ghana’s economy which is poised for accelerated growth.

Nana Chairman, let me now re-direct attention to local stakeholders who should begin to position themselves to satisfy the demands of the industry. Our tertiary institutions, for example, should reach out to the emerging industry in order to prepare and develop appropriate manpower for engagement. Happily, such preparation will stand not in conflict, but rather in sync, with the Educational Reform which is promoting Science, Mathematics, Technology and Vocational Studies.

The Banking and Financial sector will obviously be challenged to develop appropriate products to support the industry. In the mean time, transportation, hospitality, legal and accounting services, and construction industries, should all be reading themselves for the many opportunities that are bound to come in the wake of the emerging oil industry.

For the immediate, we may have need of hired expertise wherever it can be found. But in order not to perpetuate dependence on such expertise, engagement contracts should highlight technological transfer to local staff in the most efficient manner within the shortest possible time.

Further, the oil industry must be effectively harnessed towards the achievement of immediate national goals of poverty reduction and the attainment of a middle income status by the year 2015. In doing so, deliberate steps should be taken to develop tandem traditional sectors of the economy in order to avoid the creation of an oil-dependent economy as has happened elsewhere. Indeed, with the advantage of the late comer the country should at all cost avoid such an experience.

Ladies and Gentlemen, after this conference and workshop, government will continue to consult widely over the coming months as it prepares an organic and comprehensive National Oil and Gas Policy and Master Plan for the sector.

I thank you for making yourselves available at this crucial forum, and wish you fruitful deliberations.

Ladies and Gentlemen, it is my singular honour to declare the maiden National Consultative Forum on Oil and Gas duly open.

Thank you and may God bless you all.