Ghana has taken a major step toward attracting fresh investment into its upstream petroleum industry after reaching a preliminary agreement with international energy companies Shell and Chevron over the South Deepwater Tano Cape Three Points oil and gas block.
The agreement, announced on September 3, covers the potential acquisition of exploration and production rights in the offshore block. It is non-binding, meaning the parties still have further negotiations and processes to complete before any final arrangement can take effect.
The development comes as the government undertakes a broader review of Ghana’s oil and gas sector while seeking to increase investment and unlock additional production opportunities. Energy Minister John Abdulai Jinapor described the agreement as an important development for the country’s petroleum industry.
Shell and Chevron are expected to work alongside the Ghana National Petroleum Corporation (GNPC) and its partners to assess existing discoveries and examine the wider exploration prospects of the block. The parties have not yet publicly disclosed the proposed ownership percentages or detailed work programme.
The government believes stronger partnerships with major international energy companies could help Ghana expand its oil and gas activities, attract capital and create opportunities within the wider energy sector. The latest agreement therefore represents another effort to position Ghana’s offshore petroleum resources for renewed development.
Source: GhanaNsem
