Petroleum Africa
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Thursday, December 5, 2013
Ghana’s parliament has ratified the petroleum agreement between the government, GNPC, GNPC Exploration and Production Co. Ltd. (Explorco), and AGM Petroleum Ghana Ltd. to explore and operate the South Deepwater Tano Block (SDWT) offshore the West African country. The ratification followed the approval by Ghana’s cabinet and a review by the Parliamentary Select Committee on Mines, Energy, and Petroleum.
The ratification grants the parties involved the exclusive right and authority to carry out all petroleum exploration, development and production activities in the SDWT Block.
AGM Petroleum Ghana Ltd. (AGM Ghana), is a wholly owned subsidiary of AGM Gibraltar, a company jointly owned by AGR Energy AS (AGR), Minexco (OGG) Inc., and MED Songhai Developers Ltd.
The SDWT Block covers 3,482 sq km and is located in deep to ultra-deep waters of the Tano basin, with water depth ranging from 2,000 meters to about 3,500 meters. It is in close proximity to the Hess-operated Deepwater Tano/Cape Three Points block, where seven discoveries have been made, and the Vanco/Lukoil Deepwater Cape Three Points block, which has seen one discovery.
The agreement incorporates a significant commercial interest accruing to GNPC, through a GNPC subsidiary, Explorco. This adds to GNPC’s hitherto normal Initial and Additional-Participation interest, making it more commercial.
Sverre Skogen, chairman of AGM Petroleum, said: “The approval of the South Deepwater Tano Block Petroleum Agreement by the Parliament of Ghana marks a major milestone for AGM Petroleum and its partners. We look forward to working closely with GNPC to realise the potential of the block. The SDWT block represents an important opportunity for the people of Ghana and Corporate Social Responsibility will underpin the way we conduct our business. We are committed to partnering with our communities to improve their quality of life. We now look forward to bringing our collective experience in deep water exploration and moving forward with a plan to fulfil the agreed work program.”
Dr Martin Keeley, acting chief executive of Minexco OGG Inc, added: “We are very appreciative of the endorsement AGM Petroleum has received from the President of the Republic of Ghana, John Dramani Mahama, his Cabinet and now from the Members of Parliament, to explore and operate the SDWT block. We look forward to building upon our relationship.”
Alex Mould, chief executive of GNPC, said: “GNPC is thrilled about the ratification of the agreement by parliament. Not only will this agreement increase the share of the resources and net revenues that would accrue to Ghana, but also makes GNPC a Joint Operator for the first time. This is a landmark achievement and presents a shift-in-paradigm opportunity for GNPC to realise its goal of becoming a world-class National Oil Company. The agreement aligns with GNPC’s overarching goal of becoming a ‘stand-alone’ operator in seven years and a world-class operator in 15 years, launched in 2012.”
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