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Aker Energy to submit revised plan of development to Government of Ghana

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Two years after its initial Plan of Development to facilitate the optimization of the Deepwater Tano/Cape Three Points (DWT/CTP) block was rejected by government, Aker Energy is set to submit a revised plan of development to government by the end of this year.

This was disclosed in a press statement issued by Aker Energy Ghana Limited and sighted by Citi Business News.

The press statement comes days after the CEO of Aker, Oyvind Eriksen, gave updates on Aker Energy AS, of which Aker Energy Ghana is a subsidiary, during the presentation of the company’s First Quarter 2021 results.

The CEO during that presentation spoke of the change in strategy for Aker’s Exploration and Production Company in Ghana and cost savings achieved.

“The team has done a great job in modifying the concept and strategy and has shifted from a centralized FPSO approach to a phased plan to develop the resources in the area. Under the revised strategy, most of the production is maintained, but the breakeven oil price is significantly reduced to around $30 per barrel and the cost level is about half from the original plan. The natural next step is to move towards a Plan of Development and Operations (PDO). But we are in parallel reviewing strategic options for the company.”

The CEO of Aker Energy Ghana Limited, Kadijah Amoah in the press statement clarified her boss’ remarks, stating that the company is moving forward as planned with the new phased development concept for the Pecan field reducing the breakeven costs.

“The team has optimized the field development concept to secure a robust and cost-efficient project reducing the breakeven cost to approximately half the original cost,” she added.

The press statement also added that Aker Energy and partners are currently assessing field development concepts and FPSO candidates for redeployment, and the final selection will be based on technical capabilities and cost.

“While the original field development concept was based on a centralized FPSO supporting the development of the entire Pecan field, as well as tie-ins of all other area resources, the focus per the statement has shifted toward a phased development approach. This approach will enable Aker Energy to commence with one FPSO for Pecan in the south and expand to a second FPSO in the north after a few years, with tie-ins of additional discovered resources. The first FPSO will be deployed at around 115 kilometres offshore Ghana over a subsea production system installed in ultra-deep waters in depths ranging from 2,400 to 2,700 metres.”

Aker Energy reaffirms its commitment together with its partners

“We remain committed to Ghana. Along with our partners, we are optimistic that with this new phased development concept we can finally see first oil in the fourth offshore field in Ghana,” said Kadijah Amoah.

Geophysical and Geotechnical surveys will commence at the end of May 2021. These are critical in optimizing the Pecan Subsea Field Layout.

“With these surveys, we take a significant step in moving towards submitting a Plan of Development and Operations to the Government of Ghana and achieving first oil,” Mrs. Amoah added.

About Aker Energy

Aker Energy Ghana Ltd, a subsidiary of Norwegian-based oil exploration and production firm Aker Energy AS, is an exploration and production company and the operator of the Deepwater Tano Cape Three Points (DWT/CTP) block.

It holds a 50% participating interest in the license, and the partners are Lukoil Overseas Ghana Tano Limited (38%), the Ghana National Petroleum Corporation (GNPC) (10%) and Fueltrade Limited (2%).

The block holds discovered resources of between 450-550 million barrels of oil equivalent.

Aker Energy aims to become the oil and gas operator of choice offshore Ghana, by maturing and producing resources in a safe, efficient, and reliable manner to the benefit of the company, partners, and the people of Ghana.

Aker Energy AS is part of the Norwegian Aker group of companies, with Aker ASA and TRG AS as its majority shareholders. Aker Energy has offices in Ghana and Norway.

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