Continental Focus, International Reach

Ghana Gives Aker Pause on Pecan Oilfield

Monday, November 4, 2019

According to recent reports, Aker Energy is having to rethink its approach on the planned development of the Pecan oilfield offshore Ghana in the Deepwater Tano Cape Three Points block (DWT/CT).

In May, Aker announced that it expected Ghanaian authorities to give the green light to its $4.4 billion development plan for the offshore Pecan oilfield by the end of Q3. Apparently, Aker planned to tie in discoveries in a wider area to its planned Pecan production systems but neglected to obtain prior approvals for this approach.

Apparently, contracts over a certain value need to be approved by the Petroleum Commission. The number of approvals this would require for Pecan is more than 2,000, Aker said. As a result, the company put forward suggestions to change the regulatory framework “to make development and operations more predictable and robust.”

“Aker Energy genuinely believed that such an approach would be to the benefit of the host country, Ghana, but that it would also enable operators to take a strategic perspective beyond individual fields. Some regulatory changes are likely to be proposed by the government of Ghana, though not to the extent requested in the PDO. Hence, Aker Energy is changing its strategic approach,” said Eriksen, in Aker’s Q3 announcement. “The change in strategy is likely to trigger delays, but I am confident that it will de-risk the project and, hence, protect significant values in Ghana,” Eriksen added.