Tullow Oil Project In 2007, Tullow Oil plc (Tullow) and its partners discovered the Jubilee oil field offshore of Ghana. The project involves the first phase of development of the Jubilee field. It involves the drilling of 17 wells (nine production wells, five water injection wells, and three gas injection wells), sub-sea production installations and leasing of a floating production, storage and offloading (FPSO) vessel for processing, storage and handling of crude. Initial estimated gross production capacity is 120,000 barrels of oil per day and will increase as the field is further developed and more reserves are proven. World Bank Groups Strategy:    Ghanas poverty reduction strategy seeks to:    - raise private sector competitiveness;    - improve human development outcomes with interventions in health, education, water and sanitation, and social protection sectors; and    - strengthen governance through decentralization, public sector reform, and promotion of results-based public policy choice.  To help with its strategy, the World Bank Groups program in Ghana has set three overarching objectives:  increasing economic growth, reducing poverty and reducing inequalities.  The goal of increasing economic growth rests primarily on the expansion of the private sector, its competitiveness and its diversification.  To support this economic growth objective, IFCs strategy in Ghana has focused on supporting private provision of infrastructure, deepening the domestic financial sector, expanding opportunities for micro, small and medium scale enterprise borrowing through local financial institutions, promoting the development of non-traditional exports and enhancing the business environment.  IFCs support of the project is consistent with this strategy:  It promotes the development of a private sector-led industry that can generate exports and/or replace expensive imports of crude by local refineries and opens up avenues for additional downstream investments by using gas that can provide energy to sustain economic growth.  It will provide Government with the resources needed to pursue its poverty reduction strategy.  Development Impact:    The development of the Jubilee oil field is expected to generate substantial benefits for the country:  -  Develop domestic sources of energy:  The project would help develop local sources of energy which opens up options for the Government to address critical issues such as dependence on foreign crude imports and foreign exchange generation.  The project also raises the possibility of gas production, which can provide substantial opportunities at addressing the shortage of power in the country.  -  Expand exports/reduce imports:  The project would help add to Ghanas exports and generate substantial foreign exchange earnings through export of crude.  Alternatively, local oil production will allow Ghana to replace crude oil imports, thereby conserving foreign exchange for the country.   -  Attract foreign direct investment:  Although oil exploration has been taking place in Ghana since its independence in 1957, few oil companies have shown interest in the country.  The size of the Jubilee field and its successful development should spur significant interest from major oil companies and energize Ghanas hydrocarbon sector by increasing exploration and development activities in the country.  This interest should result in expanding foreign direct investment in Ghana, which has remained relatively low for an economy of its potential.  -  Generate revenues for Government:  It is expected that the Government of Ghana will receive substantial fiscal receipts from royalties, production sharing and corporate taxes, generated by oil production from the project.  -  Create direct employment:  Production operations and onshore support will bring employment opportunities.  Approximately 156 employment opportunities with between 10% to 50% local staffing content are expected.  In addition, marine and aviation support operations will continue to provide approximately 60 employment opportunities with a local staff complement of between 30% and 80%.  Such employment would also bring a new set of skills and technology into the country and would expand the employment opportunities of local participants both regionally and globally.   -  Stimulate demand for local goods and services:  Under the Petroleum Agreement signed with the Government, Tullow and its partners shall give preference to materials, services and products produced in Ghana.  The focus on locally produced goods and services will encourage economic activity in other areas such as construction, rentals, fabrication and business services.  The key development indicators that are proposed to be monitored during the life of the IFC investment are:    - annual oil production; - direct employment levels; - production sharing and fiscal payments accruing to the Governments; and - annual expenditures on domestic goods and services.