Pecan Energies, Ghana’s upstream oil and gas giant which operates the Ghana’s Deepwater Tano/Cape Three Points (DWT/CTP) block, has achieved a major breakthrough in its negotiations as Ghanaian authorities greenlighted the Plan of Development (PoD) for the contract area.
Meanwhile, the PoD approval, granted by the Minister of Energy, represents a testament to AFC’s expertise in risk mitigation and effective collaboration with partners.
AFC, through its subsidiary AFC Equity Investment Ltd (AFCEI), will now focus on reaching a Final Investment Decision (FID) after engaging with all relevant stakeholders involved in the project.
The announcement of Ghana’s approval came on the back of an acquisition by Africa Finance Corporation (AFC), which signals a significant step towards unlocking Ghana’s offshore potential.
The phased development plan outlined in the PoD will commence with the Pecan field, the largest discovery in the DWT/CTP contract area. Phase 1a and Phase 1b are expected to yield approximately 268 million barrels of oil, with an estimated capital expenditure of $3.5 billion.
Notably, the DWT/CTP block as a whole boasts a potential recoverable resource of 550 million barrels, underpinning its significance as a strategic asset.
Situated in ultra-deep waters, roughly 115 kilometers offshore Ghana, the Pecan field will be developed utilizing a Floating Production Storage and Offloading (FPSO) vessel and a subsea production system (SPS).
Pecan Energies is confident in its highly competent technical team, well-versed in field management and global deepwater projects, supported by AFC’s extensive experience in upstream oil and gas investments.
AFC’s commitment to investing in Africa’s oil and gas sector has been steadfast, with over $1 billion deployed since 2007. The corporation has successfully developed innovative financial products that align with the continent’s sustainable resource development goals while retaining value within Africa.
Positive Development for Ghana’s Economy
The approval of the PoD is not only a triumph for Pecan Energies but also a positive development for Ghana’s economy. The projected GDP uplift of ¢10 billion demonstrates the transformative potential of the DWT/CTP block.
Pecan Energies, in close collaboration with the Ghanaian government, is dedicated to the successful execution of this landmark project, which promises sustainable growth opportunities for the nation and its people.
As AFC spearheads the Pecan Energies venture, the institution’s track record in providing pragmatic solutions to Africa’s infrastructure deficit is undeniable. Boasting a portfolio of loans and investments totaling $10.5 billion across six sectors, AFC has solidified its position as a pan-African multilateral development finance institution.
Ghana’s decision to become an AFC sovereign shareholder in 2018 further underscores the corporation’s enduring presence in the country. Over the past 15 years, AFC has played a pivotal role in various Ghanaian projects across diverse sectors. These include the Kpone Independent Power Plant, the Tako’adi Port Project, the expansion of the Kotoka International Airport, and the Access LNG Project, where AFC acted as a debt provider and equity participant.
With the PoD approval now secured, Pecan Energies and its partners are poised to propel Ghana’s offshore industry to new heights. This significant milestone represents a major step towards actualizing the immense economic potential of the DWT/CTP block and paves the way for a promising future in the energy sector.
Pecan Energies has since outlined plans to stimulate local content. The buoyant sentiments that mostly characterise the oil industry after approval and regulator enforcing the local content are that the Indigenous industry players are free to clamour for jobs but that has gone down drastically after the development of the last two independent oil fields – TEN and Sankofa Fields.
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