Ghana’s national oil company, GNPC, is looking to purchase stakes in South Deep Water Tano and Deep Water Tano/ Cape Three Points oil blocks offshore Republic of Ghana.
GNPC wants to purchase about 70 percent stake in SWDT block operated by AGM Petroleum Ghana Limited and 37 percent stake in DWT/CTP operated by Aker Energy Ghana Limited.
To this end, GNPC has submitted a memorandum to Ghana’s Parliament to seek approval for a loan of $1.65 billion to enable it purchase stakes in the two oil blocks.
According to report filed by citinewsroom.com, the country’s Energy Minister, Dr Matthew Opoku Prempeh presented the document on behalf of GNPC to parliament for consideration and approval.
“Provision of a loan not exceeding US$1.65 billion to finance the acquisition at a price to be negotiated which might not exceed US$1.3 billion and GC Explorco share of capital expenditure (CAPEX) to Pecan Phase 1 First Oil of US$350 million.”
The report said GNPC argued that entering such a partnership with the two entities is critical because prevailing situations such as the exiting of oil majors from the country required that it builds its capacity and takes up a large part of the exploration activities before Ghana’s oil reserves hit a level of terminal decline.
“With the shift away from investments in oil and gas into renewable, Ghana faces the risk of stranded assets and dwindling proven reserves if GNPC is unable to undertake exploration, development and production alone. A declining industry undermines growth, diminishes revenue expectations for Ghana and makes redundant the stock of skilled labour in the industry which Ghana has rapidly built up over the decade.”
It said the move is “all the more needed and urgent” hence the need for parliamentary ratification.
Within four to five years, GNPC believes that the partnership will help the country produce an extra 200,000 barrels of crude oil.
“Cabinet has already granted approval for the deal,” the report noted.