Gas processing from the giant Jubilee field off West Africa looks set to be held up after a court in Ghana ordered a state-run firm to cease construction at a plant pending payment of compensation to local chiefs, according to a report.
The court in Ghana’s western region ordered Ghana National Gas to stop construction work at the $650 million plant that is designed to process gas from Jubilee, Reuters reported.
"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 told the news wire.
"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, according to Reuters.
Jubilee was discovered in 2007 through wells Mahogany-1 and Hyedua-1, intersecting a large continuous accumulation of light sweet crude.
Appraisal drilling started the following year with two further successful wells drilled, Mahogany-2 and Hyedua-2.
Phase 1 development was completed in October 2011 with initial production just 11 months beforehand. Phase 1A is undergoing completion with the full field development plan making its way through the Ghanaian system.