The state oil group Ghana National Petroleum Corp. invited bids from future investors in May.

Joe Oteng-Adjei, Ghana's energy minister, told the Financial Times July 7 that the country was looking for a "win-win" solution to reward investors in Kosmos while maximizing Ghana's potential.

According to a report by The Wall Street Journal July 28, a partnership between the London-based Tullow Oil PLC, Kosmos Energy in Dallas -- backed by U.S. private-equity firms Blackstone and Warburg Pincus -- the Anadarko Petroleum Corp. in Houston as well as the Ghanaian government are managing the field.

"We are committed to doing the right thing for investors and for the country," Oteng-Adjei said in the Financial Times.

"Our concern is that we bring in a third party to deliver the synergies that we expect," he added.

In June and September 2007 GNPC discovered significant amounts of oil and gas in offshore deepwater Tano-Cape Three Points, according to Ghana's Ministry of Energy. GNPC expects more discoveries of gas in the areas nearby.

"The Jubilee Field will be developed in phases with the aim of ensuring that gas is not flared," Oteng-Adjei said in a May 5 speech on the developments in the country's energy sector in Accra.

"We expect the first oil production by 2010 and a production philosophy of maximizing the value of the resource," Oteng-Adjei added.

According to Ghana's energy minister, during the first phase, which is to be completed by 2010, the daily production would be about 120,000 barrels of oil and about 120 million cubic feet of gas. The second phase will be carried out between 2010 and 2012 and will lead to a daily production of 250,000 barrels and 250 million cubic feet of gas.

Compared with Africa's large oil players Nigeria and Angola, Ghana doesn't have much experience with oil production.

GNPC hired investment bank Morgan Stanley to give the country advice on how to manage its resources most effectively, according to a June 30 statement on GNPC's Web site.

The International Monetary Fund expects that Ghana could achieve $1 billion a year in revenue from oil production, according to the organization's Web site.

Thirty percent of Ghana's population lives on less than $1.25 a day, and nearly 10 percent remain undernourished, the IMF reported July 16.

According to The Wall Street Journal July 28, Ghana is likely to handle its oil and gas resources better than Nigeria or Angola. Ghana has held five democratic elections in a row.

In Nigeria, for example, the flow of oil is regularly shut down due to pipeline attacks, The Wall Street Journal reports.

Nigeria has lost around $47 billion in revenue from oil firm Shell since 2006 due to output cuts caused by rebel attacks, according to an online news report by Ghana Business News July 29.

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