The Ministry of Energy has terminated negotiations with Eni and other three oil companies after more than two years of unfruitful negotiations for petroleum agreements over their respective blocks.
The companies are China National Offshore Oil Corporation (CNOOC), First E&P Development Company/Elandel Energy Ghana, Eni Ghana E&P/Vitol Upstream Tano Ltd and KOKA Energy Ltd.
First E&P Development Company/Elandel Energy Ghana won block GH -WB-02 while Eni Ghana E&P/Vitol Upstream Tano Ltd won block GH -WB-03 during Ghana’s maiden licensing round in May 2019.
Meanwhile, CNOOC was given five oil blocks in the Keta Basin while KOKA Energy Ltd, a company owned by a Ghanaian, was given block GH-WB-04.
Accordingly, the memorandums of understanding the ministry signed with all the companies set out the period within which negotiations would be concluded but the MoUs have expired and there seems to be no indication as yet that the negotiations will be completed any time soon.
As such, the ministry has decided not to extend the terms of the MoUs for all the companies mentioned. This means that the blocks are available for licensing again.
The ministry, however, informed the affected companies that they can reapply if they are still interested in the blocks.
Roadshows to Woo More Investors
Over the past few years, the ministry has undertaken roadshows to woo more investors for Ghana’s available oil blocks. The roadshows appear to have attracted a favourable response, as some oil companies have already expressed an interest.
The establishment of the national oil corporation, GNPC, the Petroleum Commission and the passage of the above legislation have laid a strong foundation and provided a robust framework for the management of activities in the industry. PNDCL 84 provided the initial framework for engagement of potential investors in the upstream sector by setting out the minimum terms and conditions of the contractual framework for such engagements.
In furtherance of standardisation of the framework, the country has adopted a model petroleum agreement based on international best practice to attract investment in the sector. To date, approximately 16 operators are engaged in petroleum operations under 18 petroleum agreements executed between the GNPC, the government, international oil companies (IOCs) and indigenous Ghanaian companies (IGCs). The E&P companies that have been attracted to Ghana’s upstream sector include Kosmos Energy, Vitol Upstream Tano, Lukoil, Tullow, Anadarko, ENI, Aker Energy, AGM Petroleum, Springfield Energy, Heritage E&P, Sahara Energy, Eco Atlantic, Amni International and ExxonMobil. These investments have resulted in deepwater offshore exploration activities.
The first significant deepwater oil discovery in Ghana was in 2007 by Tullow Oil, Kosmos Energy, Anadarko Petroleum and EO Group in the offshore Tano/Cape Three Points Basin of the Ghanaian continental shelf, christened the Jubilee Field.
The Jubilee Field Is a unitised field located 65km offshore, south-east of Takoradi in the Western Region of Ghana between the Deepwater Tano and West Cape Three Points blocks. The Jubilee Field is currently held by GNPC and a consortium of IOCs in the following proportions: Tullow Oil (35.48 per cent), Kosmos Energy (24.08 per cent), Anadarko (24.08 per cent), GNPC (13.64 per cent) and Petro SA (2.73 per cent).
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