The Ghana National Petroleum Corporation (GNPC) says the proposed deal with Aker Energy and AGM Petroleum Ghana Limited paves the way for GNPC to become standalone operator.
Four-phased development
The four-phase development of Deepwater Tano/Cape Three Points (DWT/CTP) bloc and the South Deepwater Tano Block (SDWT) blocs will span 10 years.
717m barrels of oil as contingent
The two blocs have contingent resources of 717 million barrels confirmed with substantial prospects in the two blocs, especially SDWT with about four billion barrels of oil.
5.117 billion barrels of crude oil as contingent and prospects
Estimates indicate that contingent and prospects in both blocs could be 5.117 billion barrels of crude oil.
3-phase approach to become standalone operator in 15
The Corporation has set out three-phase approach to build capacity to become a standalone operator in 15 years from now.
2021 to 2028- joint operatorship with strong govt support
The first phase which spans seven years – from 2021 to 2028 – is expected to be joint operatorship with strong government support.
2029 to 2035 joint operatorship with moderate govt support
Between 2029 and 2035, GNPC intends to roll out the second phase still under joint operatorship with moderate government support.
After 2035- standalone operator
At the end of 2035, the Corporation hopes to be a standalone operator with minimal government
Appeal for govt support
Chief Executive Officer (CEO) of GNPC, Dr Kofi Kodua Sarpong, appealed to government to support GNPC to accelerate its drive towards operatorship.
Opportunity to build operator capacity
He said through this partnership, GNPC would get the opportunity to build operator capacity at a critical time in history.
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GNPC as exploration and Production Company
Dr Sarpong noted that the intended acquisition by GNPC Explorco into Aker and AGM offers an opportunity for GNPC to acquire operatorship capacity to enable it to play a major role as an exploration and production company.
Creating significant value for Ghana
According to him, the partnership would enable GNPC and Ghana to, not only face the emerging energy transition in a well-prepared manner, but also create significant value for Ghana.
Possibility of GNPC developing inactive and new oil blocs
The deal, he said, offers potential for further exploration and appraisal activities and possibility of developing inactive and new oil blocs.
Loans from govt and banks to be contracted on commercial terms
Dr Sarpong explained that loans provided by government and local banks would be commercial terms and would be repaid from sale of GNPC Explorco share of crude oil.
Using GNPC Explorco share of crude oil to repay loan
He stated that using GNPC Explorco share of crude oil to repay loan does not infringe the Petroleum Revenue Management, 2011, Act 815 as amended and relevant laws according to the Attorney General and Minister for Justice.
Acquisition and development cost to be fully recouped
Dr Sarpong indicated that the acquisition cost and development cost incurred by GNPC Explorco would be recouped fully once production starts, and it would stay in Ghana
Other benefits of the deal
The CEO of GNPC said other benefits include avoiding tax pressure from international oil companies (IOCs), reduction in operational costs through efficient procurement, GNPC to be in charge of local content and acceleration of oil production during energy transition.
Tax and other concessions
He added that tax and other concessions made to Aker Energy and AGM would substantially accrue to GNPC and indigenous Ghanaian companies (IGCs).
Refining of crude oil in Ghana
Dr Sarpong also added that refining of crude oil to supply Ghana’s white products needs and promotion of other petro-chemical industries such as fertilizer, bitumen, among others, would help the country’s progress.
