THE POTENTIAL IMPACTS OF OIL AND GAS EXPLORATION AND PRODUCTION ON THE COASTAL ZONE OF GHANA An Ecosystem Services Approach George Amoasah MSc Thesis in Environmental Sciences February 2010 Supervised by: Dr. Lars Hein Environmental Systems Analysis THE POTENTIAL IMPACTS OF OIL AND GAS EXPLORATION AND PRODUCTION ON THE COASTAL ZONE OF GHANA An Ecosystem Services Approach George Amoasah MSc Thesis in Environmental Sciences February 2010 No part of this thesis may be reproduced without contacting the Environmental Systems Analysis Group. Supervisor: Examiners: Dr. Lars Hein (ESA) 1.Dr. Lars Hein Wageningen University 2.Prof. Rik Leemans Environmental Systems Analysis Group PO Box 47 6700 AA Wageningen PREFACE This study examines and analyzes the potential impacts of Ghana‟s oil and gas exploration and production on its coastal ecosystems and coastal communities. It brings to bear both the environmental impacts and other related socio-economic consequences on the coastal dwellers. Also, it analyzes the nation‟s legislation ability to cope with the impacts from the oil and gas exploration. My interest in environmental issues started from my teenage when I became curious about the consequences of mining pollution in my native town, Obuasi. Over the years, this town had made Ghana the second highest gold producing country in Africa and till date the country is second only to South Africa on the continent. In the late 1970s, environmental issues were not on Ghana‟s priority agenda. As such, many environmental issues were taken for granted and this situation resulted in many negative environmental consequences on the local communities. In Obuasi, at first the company‟s long chimneys released daily huge quantities of aerosols into the atmosphere. This situation had resulted in a continued downpour of acid rain over the town. Meanwhile, many inhabitants depended on this source of water for household chores and even for drinking. I remember on several occasions, I had to fetch rainwater only to realize large quantities of blackish substances settled beneath the collection pan. The greatest of impact was probably felt by the communities closed to the chimneys or were subject to a continued battle with the smoke due to the atmospheric wind direction. With time most inhabitants of these communities developed strange skin colors with strange patterns and spots. But this was not just the end of their calamity. Acidification as a result of the mining activities destroyed many fertile and agricultural lands thereby denying them of their daily livelihood. Increasingly, it became clear that the environmental situation of this and other mining towns had to improve. But the possibility to study environmental sciences was limited in Ghana. So upon completion of my Bsc agricultural program, I pursued the opportunity to accomplish the MSc in environmental science program of Wageningen University. This time, I decided to focus on new projects because as the saying goes, „prevention is better than cure‟. Ghana is currently less experienced in managing the impacts of oil and gas development and with this new oil and gas discovery the country faces many challenges. If appropriate action is not taken in this era of environmental awareness, then posterity may never forgive this present generation. For this reason, I decided to undertake this study. I must admit that this study would not have been possible without the assistance of many people whose contributions have brought me this far. My foremost appreciation goes to the Dutch government for granting me the NUFFIC scholarship to study in the Netherlands. My next appreciation goes to my thesis supervisor, Lars Hein, of the Environmental Systems Analysis group of Wageningen University for his constructive criticism and painstakingly supervising this tedious work. I also want to thank Mr. Andre van Amstel, my study adviser, for being there when most needed. Also, my appreciations to the entire staff of the Environmental System Analysis group for making this place a home for me. Many thanks are due to Prosper Antwi Boasiako for getting some relevant documents from the Environmental Protection Agency of Ghana. Finally, my appreciation goes to my family Florence, Catherine and Gordon for their support and encouragement during this period of solitary life. Table of Contents SUMMARY .................................................................................................................................... 7 1 INTRODUCTION ..................................................................................................................... 10 1.1 Background ......................................................................................................................... 10 1.1.1 The setting .................................................................................................................... 10 2. OBJECTIVE AND RESEARCH QUESTIONS ...................................................................... 15 3. METHODOLOGY ................................................................................................................... 17 3.1 General approach and scope ................................................................................................ 17 3.2 The study area ..................................................................................................................... 18 3.3 Methods ............................................................................................................................... 19 4. RESULTS ................................................................................................................................. 22 4.1 Impacts of oil and gas exploration and production on the coastal zone of Ghana .............. 22 4.1.1 Oil and gas exploration and production description .................................................... 22 4.1.2 First order of impact..................................................................................................... 24 4.1.3 Second order of impact ................................................................................................ 28 4.1.4 Third order of impact ................................................................................................... 29 4.1.5 The on-shore ecology at the Cape Three Point ............................................................ 32 4.2 Ghana‟s legislation ability to cope with the environmental and socio-economic impacts of oil and gas exploration .............................................................................................................. 33 4.2.1 Overview of relevant national legislation and policies ................................................ 33 4.2.2 Relevant international environmental agreements and conventions ............................ 37 4.3 Analysis of the potential impacts on the coastal ecosystem and people living in the coastal zone of Ghana............................................................................................................................ 39 4.3.1 Impact on ecosystem and biodiversity ......................................................................... 40 4.3.2 Socio-economic impact of the jubilee field project ..................................................... 49 4.4 Analysis of Ghana‟s ability to cope with the threats from the oil and gas industry............ 51 4.4.1 Ghana‟s Environmental Standards and Guidelines ...................................................... 52 4.4.2 Law Enforcement ......................................................................................................... 53 4.4.3 Monitoring ................................................................................................................... 54 4.5 Recommendations to minimize the impacts of Ghana‟s oil and gas exploration ............... 55 4.5.1 Short-term measures .................................................................................................... 55 4.5.2 Long-term measures..................................................................................................... 56 4.5.3 A summary of Impacts and recommendations............................................................. 57 5. DISCUSSIONS AND CONCLUSION .................................................................................... 61 5.1 Uncertainties........................................................................................................................ 61 5.1.1 Dealing with uncertainties ........................................................................................... 61 5.2 Main Conclusion ................................................................................................................. 61 5.3 Recommendations ............................................................................................................... 64 5.3.1 Recommendations to minimize impacts of Ghana‟s offshore oil and gas exploration 64 5.3.2 Recommendations for further studies .......................................................................... 64 8. REFERENCES ........................................................................................................................ 66 APPENDICES .............................................................................................................................. 73 SUMMARY In 2007, Ghana discovered oil in commercial quantities in the southern coast of Gulf of Guinea. It is generally believed that such