Ghana aims to drive a fresh initiative to speed exploration of the deep and ultra-deepwaters of the Tano and Cape Three Points basins later this year, initially offering three blocks in an exercise tentatively set for the fourth quarter.

Deputy Energy Minister Mohammed Amin Adam told Upstream he hopes awards may be approved before early next year but preparations for the launch had first to be concluded.

“Several majors have expressed interest in our ultra-deep including Eni and BP, so we expect to attract a lot of attention to the exercise which will be organised under the 2016 Petroleum E&P Law, providing for open and competitive bidding,” said Adam.

Shell has also often shown interest in Ghana’s prospectivity.

Adam added that that US supermajor ExxonMobil’s surprise entry earlier this year into Ghana’s Deepwater Cape Three Points (DCTP) block, bypassing tender provisions, came because the government opted to conclude direct negotiations as a memorandum of understanding had been signed before the nation's new E&P law came into force.

ExxonMobil took an 80% operating stake and, in collaboration with state oil company Ghana National Petroleum Corporation (GNPC), is seeking an indigenous partner, as required by law, to hold a 5% share.

“We had been negotiating in good faith and it would have been wrong to change the rules after initial signature," said Adam. "There is in any case, provision within the existing law for direct negotiation in consultation with the Petroleum Commission if circumstance are deemed to require it.”

If successful, another three blocks will be offered immediately afterwards on the same basis and in the same two basins, according to Adam, formerly executive director of the Accra-based Africa Centre for Energy Policy (Acep) and co-ordinator of Oxfam’s Extractive Industries Programme.

The bulk of attention has focused on Ghana’s western waters and the forthcoming licensing exercises will reflect a need to consolidate knowledge of this area's basins.

“Thus far, we’ve had activity up to the 2000-metre isobar but now we intend to spur interest in the ultra-deep down to 4000 metres which is less well understood and where technology is less well proven,” Adam said. He added that much of the new acreage up for grabs will result from relinquishments “as well as some other areas not currently under allocation” and that the new blocks will be smaller.

“Block demarcation has already been undertaken based on prospects revealed by drilling and existing seismic but designations cannot be released until the relinquishment process is complete,” Adam said.

He added that there will some surprises. “Under the previous government headed by former president John Mahama, several companies won extensions which after initial review we cannot see any reasonable basis for awarding. We shall continue to evaluate and inevitably some will lose,” he said.

A huge swath of the Tano shallows remains unallocated, but claimed by Irish explorer Petrel Resources, part of PanAndean Resources, which has been unable to ratify its award through several administrations and several attempts to re-draw the licence boundaries.

“Petrel had discussions with the GNPC before and after the 2016 E&P Law entered into force, so we asked them to renew the agreement with the GNPC and we will look at it. We are currently waiting to hear from them,” said Adam.

Tracts of unallocated ultra-deep acreage lie south of ExxonMobil’s DCTP and South Deepwater Tano (SDWT) — operated by the AGM Petroleum consortium, which is preparing to rekindle exploration plans after Ghana won its case against neighbouring Ivory Coast in the International Tribunal for the Law of the Sea (ITLOS).

AGM’s Norwegian partner AGR Energy has just adopted the name of its exploration division Petrica Energy, and is keen to accelerate exploration of the long-dormant SDWT block, taking on Aker Energy as technical operator, added Adam.

This year, Aker Energy agreed a $100 million deal to take over operatorship of Deepwater Tano Cape Three Points from US giant Hess, and is now emerging as a major player in the Ghanaian deep.

Commenting on other regions of Ghana, Adam said: “We’re leaving the eastern waters of the Keta basin for a later exercise. We’re acquiring a lot of data in the area and will wait to consolidate that before seeking a response from industry."

Meanwhile, the onshore Voltaian basin and adjoining transition zone are attracting renewed attention from GNPC, which last month contracted Nigerian provider Sonartusk to study prospects and acquire 2D seismic data.

Weekly

Ghana eyes licence rounds