Government rejects Aker development plan

Company News of Thursday, June 13, 2019

Source: goldstreetbusiness.com

2019-06-13

The Ministry of Energy has asked Aker Energy to prepare a revised version of the entire integrated development plan (DDP) that the petroleum company submitted to the ministry on March 28 this year for the development of the Pecan oilfield.

This follows his decision, partly on the advice of the Petroleum Commission and the major players in the sector, who recommended the revision of the entire agreement. Under the terms of the contract, Aker Energy has 45 days to submit the revised version of the new agreement – which should expire on June 27, 2019.

However, Aker Energy requested an extension of the transaction as the company realized that it could not meet the deadline for submitting the revised version of the development plan.

The latest developments are a delay in the implementation of what was already a tight schedule for the development of Ghana's fourth oil field, which could even double the country's oil production. Aker had announced that production would start on the ground as early as the end of next year – a schedule that some industry badysts were already saying was too optimistic – and the current backlog in terms of approval of the industry. a DP will certainly expire.

The reports collected by Goldstreet Business indicate that after the Ministry of Energy had reviewed the DDA by undertaking a series of badessments to determine the capabilities of Aker Energy and its development projects. from the Pecan oil field, the department then sent it back to the oil company for review. to be finished.

The Commission confirmed this information, but insisted that it was a normal procedure and that there was nothing unusual in the process authorized by legislation. It is important to note that there is no doubt about the government's possible approval of an Aker DP that would then be implemented.

It is equally important to note that, according to the Petroleum Commission, the government's insistence on a revision has nothing to do with the recent controversy raised by IMANI Africa, but on the validity of the petition. agreement on the oil on which Aker bases its current activities concerning the oil of pecan. field.

S addressing Goldstreet Business, Mr. Prince Benjamin Aboagye, Deputy Director General of the Petroleum Commission, said that they were waiting for the end of the month for the project to be submitted to the sector minister, for approval or otherwise.

"At each stage, we expected 45 days to return the revised version to the minister and at the same time they [Aker] have this window where they can ask for an extension, "he noted.

In January this year, Norwegian oil exploration company Aker Energy announced the discovery of what is by far the country's largest oil field off the coast of western Ghana (166 km off Takoradi).

The discovery took place in the Deepwater Tano Cape Three Points (DWT / CTP) oil block, which gave birth to the three Ghanaian oil fields already in production, Jubilee, Tweneboa Enyenra Ntomme (TEN) and Sankofa Gye- Nyame.

According to the oil and gas operator, the Pecan field contains about 450-550 million barrels of oil equivalent (Mbep), and new research activities could eventually bring the total reserves to 600-1000 Mboe.

The reserves already identified may eclipse the discoveries behind the three existing oil fields. Jubilee has 370 million barrels of reserves, TEN of 240 million barrels and the Sankofa field of 204 million barrels. This implies that the Pecan oil field could have reserves in excess of the estimated reserves of the three existing pools combined.