Ghana court orders halt to building work at gas facility - CNBC Africa

Ghana court orders halt to building work at gas facility

Western Africa

by Reuters 0

Ghana court orders halt to building work at gas facility. PHOTO: Getty Images

This is until the government pays land compensation to local chiefs, the company said on Tuesday.

The 650 million US dollars plant is designed to process gas from the offshore Jubilee field but completion has been delayed, curbing oil production capacity in Ghana, a country that also exports gold and cocoa.

(READ MORE: Ghana hits a roadblock as fiscal instability undermines growth)

"The (traditional) chiefs went to court and obtained a 14-day interim restraining order against Ghana Gas. This means we will have to stop work at the site and resolve this issue quickly," Ghana Gas spokesman Alfred Ogbamey said.

"We are in talks with the chiefs and we will be going back to court quickly to have the restraining order lifted so that work can continue while we also sort out the compensation issues amicably," he said.

The company still has to tie deepwater pipes to offshore production to make its September completion target, he said. Ghana Gas in February signed an agreement with Tullow Oil, lead operators of the Jubilee field.

(READ MORE: Ghanaian oil and gas entrepreneurs at risk)

The government hopes that the gas project's completion will boost power supply and help reduce spending on light crude imports for thermal power generation.

 

 

 

 

 

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