Country: Ghana

Tetracore Energy Group, a prominent player in Africa’s energy sector, is partnering with the Africa Prosperity Dialogues 2024 (APD 2024) in Ghana ahead of its opening of the country’s first compressed natural gas (CNG) mother station in the West African country later this year. The Nigerian company will be gold sponsor of the 3-day annual summit organised by the Africa Prosperity Network (APN), under the auspices of the President of the Republic of Ghana, H.E. Nana Addo Dankwa Akufo-Addo. It will shape a critical dialogue on the type of inclusive strategies that can deliver prosperity in Africa by promoting regional and continental integration, prioritizing marginalized populations, women, and youth, and providing a platform for sharing best practices and innovative solutions that can be scaled up across the continent. The APD 2024 will be held at the Peduase Presidential Lodge, Aburi Hills, Ghana, from January 25 to January 27, 2024. The event themed ‘Delivering Prosperity in Africa – Produce, Add Value, Trade,’ is designed to facilitate a comprehensive dialogue among key stakeholders from government, business, civil society, and academia and unlock additional regional cooperation. Expressing the significance of Tetracore’s strategic collaboration with Africa Prosperity Network, the Program Executive, Tetracore Energy Group, Oladayo Williams stated “our sponsorship of the Africa Prosperity Dialogues 2024 underscores our commitment to fostering sustainable development and energy security across the continent. We believe in the transformative power of collaborative dialogues, and the APD provides a unique opportunity to engage with thought leaders and shape the trajectory of Africa’s prosperity with the overarching goal of contributing to economic growth and prosperity in Africa, aligning with the AU Agenda 2063.” Later this year, Tetracore Energy Group ambitions to commission Ghana’s first virtual gas pipeline network and first CNG mother station. In doing so, it will bring its expertise of developing gas-to-industry and gas distribution networks in Nigeria to the rest of the region, with a focus on supporting African industries with cheap, affordable and sustainable energy solutions. Aligned with Tetracore in this strategic partnership, the Chairman and Founder, Africa Prosperity Network (APN), Gabby Asare Otchere-Darko, emphasized “Africa needs a paradigm shift and this transformation hinges on dedicated leadership, strategic investments in vital sectors, one single African Market, innovations, and a steadfast commitment to fostering trade and investment to unlocking the continent’s immense potential on the global stage. This is the second edition of the Africa Prosperity Dialogue, so when we have these meetings where political and business leaders meet, we think, plan and work together on how we can accelerate, deepen and expand the implementation of the single market project and present this to the assembly of heads of states and governments for the African Union to adopt.” Tetracore’s sponsorship reflects the company’s dedication to corporate responsibility, and sustainability, and its role as a catalyst for positive change, alongside other strategic partners for ADP 2024 including the African Continental Free Trade Area (AfCFTA) Secretariat, United Nations Development Programme (UNDP) Africa, African Development Bank (AfDB), African Export-Import Bank (Afreximbank), United Nations Economic Forum for Africa (UNECA), Africa Business Council (AfBC), Africa America Institute (AAI), Arab Bank for Economic Development in Africa (BADEA), Africa Soft Power, and Ghana Investment Promotion Centre (GIPC). To register for the Africa Prosperity Dialogues 2024 (APD 2024), visit www.africaprosperitynetwork.com for more information.

The reopening of some refineries in Africa and the gradual commissioning of new facilities will mark the recovery of the continent’s downstream industry in 2023, according to Hawilti’s African Refineries Watch published today. While sub-Saharan Africa’s refining capacity is still under-utilised at some 40%, recovery is on the horizon with the re-opening of South Africa’s Astron Energy Refinery (100,000 barrels per day – bpd) and Ghana’s Tema Oil Refinery (45,000 bpd). Once both facilities are back in operations, the sub-continent will be able to utlise about half of its installed refining capacity. Refining capacity to get a boost in West Africa Ghana is also expecting to commission soon the Sentuo Oil Refinery, a 3 train multi-product crude oil refinery built within the Tema Industrial Zone with a targeted production capacity of 120 000 bpd. Its initial phase will have a capacity to produce 2 million tonnes per year (tpy) of petroleum products, almost doubling the country’s refining capacity. This is welcome news for Ghana who has seen its imports bill soar in recent months, reaching almost $4 billion in 2022 in premium and gasoil imports, according to the Bank of Ghana. But much larger change is currently happening in Nigeria, with the upcoming commissioning of the 650,000 bpd Dangote Refinery. The facility is scheduled to be inaugurated on May 22nd just before President Buhari leaves office and will cement Nigeria’s position as Africa’s leading refiner. Hawilti expresses cautious optimism on the commissioning of the Dangote Refinery, pointing to the complex and lengthy process required to reach full production. In its most recent report on Nigeria, the IMF for instance did not expect the refinery to reach full capacity right away, assuming a production of only 100,000 bpd in 2024 and 200,000 bpd in 2025. Meanwhile, Nigerian modular refineries have managed to navigate the country’s challenging business environments and found ways to secure new feedstock options to run small-scale facilities. Both the 1,000 bpd Edo Refinery and the 2,500 bpd Duport Midstream Refinery for instance are currently receiving crude oil by trucks from a marginal field in the Niger Delta to support their operations. The Edo Refinery is also undergoing significant expansion, with owner AIPCC Energy expecting to reach a capacity of 30,000 bpd at the end of this year and up to 100,000 bpd in 2024. “The drive to develop downstream assets with emphasis on refineries in emerging economies coupled with global energy volatility and evacuation challenges in some African countries is fueling the interest in the development of modular refineries,” declared Souheil Abboud, Managing Director at VFuels LLC. “The benefits of decentralizing refining infrastructure are one of the main reasons for the growth of modular refineries in Africa, and especially Nigeria. We are surely witnessing a growing demand for more sustainable infrastructure assets and an interest from Nigerian developers to integrated low-carbon electrification options within their future refining infrastructure. VFuels is proud to have completed an engineering FEED package that integrates renewable power solution for a refinery project in Nigeria.”

Hawilti released an important new study on Gas for Africa in partnership with the International Gas Union (IGU), assessing the potential for domestic gas resources to energise Africa in line with the global energy transition. The African Energy Commission (AU-AFREC) and the Africa Finance Corporation endorse the report and its findings. The study starts by analysing current energy poverty trends in Africa, a continent with the lowest electricity per capita consumption in the world and the lowest CO2 per capita emissions. It argues for a pragmatic use of natural gas reserves to support a broad industrial and economic development of Africa in a way that is sustainable and enables a just energy transition. Mickael Vogel, Director & Head of Research, Hawilti “Energy poverty in Africa often boils down to the number of people without access to electricity – 600 million, or without access to clean cooking – 970 million. Unfortunately, this assessment misses the point and can lead to responses and solutions that are ill-adapted to Africa’s development needs. As it argues for a better use of gas, the report calls for more ambitious targets around energy access so that we can both bridge Africa’s energy deficit but also support economic growth and industrialisation.” The ”Gas for Africa” report highlights several ways in which gas can have a positive impact on Africa’s socio-economic development including by switching away from coal and diesel, developing energy-intensive industries and gas-based industrialisation, displacing fuelwood and biomass in households, generating baseload electricity to integrate intermittent energies, and building gas systems that can be decarbonisable in the future with hydrogen, renewable gas, and CCUS. However, a pragmatic utilisation of Africa’s 18 Tcm of proven gas reserves – or 9% of the world’s reserves – calls for a reorientation towards domestic monetisation. Most of the gas produced in sub-Saharan Africa remains exported, with local consumption still limited because of limited infrastructure availability. Additional barriers include limited access to capital, security risks, and policy uncertaint.y To overcome these key barriers to development, a total of eight guiding principles are given as recommendations to help stakeholders and policy makers navigate the complexity of the gas industry: The full report is available for download here.

The Ghana National Gas Company (GNGC) has signed last week a project agreement for the construction of a second gas processing plant of 150 MMscf/d at Atuabo in Western Ghana. Train 2 will double gas processing capacity at Atuabo, where a first train of 150 MMscf/d was commissioned in 2015. Expansion plans have been on the table for a few years, with FEED studies completed for the second train in 2021. The initial capacity has been set at 150 MMscf/d, expandable to 350 MMscf/d in the future. The development of gas processing plants at Atuabo is part of Ghana’s Western Corridor Gas Infrastructure that transports gas produced offshore, processes it and sells it on the domestic market. The initial phase of the project cost some $1bn and was funded by China. It comprised a 58km offshore gas export pipeline from the Jubilee FPSO to the Atuabo gas plant, the construction of the first train at Atuabo, a 110km onshore pipeline transporting sales gas to the Volta River Authority’s power plant at Aboadze in Takoradi, and an LPG truck-loading gantry. The commissioning of the network in 2015 enabled TullowOil to monetise its associated gas from its Jubilee and TEN fields, thereby reducing flaring. The operator has committed to eliminate routine flaring in Ghana by 2025 while monetizing some 2 Tcf of gas reserves to meet the country’s growing gas demand. As a result, additional gas processing capacity is needed to process incremental raw gas volumes that will come from both the Jubilee and TEN fields. Details on Ghana’s gas infrastructure and the contractors involved in the expansion of the Atuabo GPP are available within your Hawilti+ research terminal – plus.hawilti.com

American energy solutions provider Genser Energy has announced the closing of a $425m funding package to support the expansion of its midstream gas business in Ghana. The company is already a provider of captive power solutions to several of Ghana’s gold mines and is currently expanding across West Africa. The 8-year, $425m funding package includes a $325m syndicated senior loan facility and a $100m mezzanine loan facility. It will be used to refinance Genser Energy’s existing debt and support three critical midstream gas projects in Ghana. Expansion of Ghana’s gas pipeline network The first one is a 100km natural gas pipeline to Kumasi, Ghana’s second largest city. In doing so, Genser Energy seeks to make piped natural gas available within Ghana’s central belt and offer an alternative to imported trucked diesel and heavy fuel oil (HFO) for industries in the region. According to Genser Energy’s records, the company is planning to build an overall gas pipeline network of 320km in Ghana to connect its power generation plants to Ghana Gas’ Prestea Regulating and Metering Station (PRMS). In November 2019, a first phase of 80km was already commissioned to provide gas to Gold Fields’ Tarkwa and Damang gold mines power stations. Additional phases notably target gas supplies to Kinross Gold Corporation’s Chirano mine, Perseus Mining’s Edikan mine, and Gold Star Resources’ Wassa mines, among others. Launch of an integrated natural gas liquids (NGLs) business The second one is a 200 MMscf/d gas conditioning plant in Prestea, southwestern Ghana, where Genser Energy intends to produce natural gas liquids (NGLs) such as propane, butane, ethane, and liquefied natural gas (LNG). All NGLs will be sold under an off-take agreement to Trafigura, who notably participated in the mezzanine loan. Trafigura is also providing additional funding to the third and last project, a NGL storage terminal at the Takoradi Port.   A wide range of financiers The ability of Genser Energy to secure such a debt package is an encouraging sign for Africa where several asset owners and operators are currently raising capital for domestic midstream and downstream gas ventures. A wide and diverse range of investors participated in Genser Energy’s senior loan facility, including regional and commercial international banks, development financial institutions, and funds. These comprised the Standard Bank of South Africa, Absa Bank, Société Générale, the Mauritius Commercial Bank, Ninety One, Barak Fund SPC Ltd, and the Development Bank of Southern Africa. On the other hand, the mezzanine loan facility is provided by Trafigura, Barak Fund SPC Limited and the US Based Fund, Trilinc Global Sustainable Income Fund Master Ltd.

Tullow Oil and Capricorn Energy (formerly Cairn Energy) have agreed earlier this week on an all-stock merger deal worth over $800m. The combination of both companies will create one of Africa’s leading independent energy companies, and confirms the strong rise of M&A deals in Africa this year. The deal is likely to be implemented as a Court-sanctioned scheme of arrangement under which Tullow Oil would acquire all of the issued and to be issued shares of Capricorn Energy. Upon completion, Capricorn Energy shareholders would hold some 47% of the new combined group, and Tullow Oil’s shareholders the remaining 53%. While the name of the new combined company is yet to be revealed, it would sit on some 343m barrels of oil equivalent (boe) of reserves (2P) and 696m boe of resources with a production of some 96,000 boepd. The company would still be listed in London and be one of the largest Africa-focused energy independents. A Portfolio of Incremental, High-Return Investment Opportunities The new group will be present across lucrative assets in Ghana, Egypt, Gabon, and Côte d’Ivoire. Capricorn Energy notably entered Egypt in 2021 when it acquired Shell’s onshore assets in the Western Desert along with its consortium partner Cheiron. The gas-rich fields represent some 36,500 boepd of output for Capricorn Energy, with significant opportunity to deliver self-funded growth production via infill drilling and low-cost exploration. In Ghana, Tullow Oil’s success stories continues deliver returns while generating local value via the producing Jubilee and TEN fields where a drilling campaign is ongoing until 2025. New development wells are notably planned, especially at Jubilee South-East. Tullow Oil also has non-operated interests in key producing fields such as Espoir in Côte d’Ivoire or Tchatamba and Ezanga in Gabon. In 2021, the company’s working interest production averaged 59,200 boepd. Infrastructure-led exploration will be executed across these assets over the coming years, with opportunities to unlock additional reserves and maintain production decline. The wells will be reported within Hawilti’s Exploration Watch, available within the Hawilti+ Terminal. New Plays in Frontier Basins The new group could also be a key pioneer in the development of reserves in Kenya, Mauritania and Latin America notably. Tullow Oil is a partner in Project Oil Kenya, where a final investment decision (FID) is expected in 2023. The onshore project would deliver 120,000 bopd at peak and be Kenya’s first oil venture. Meanwhile, Capricorn Energy is hopeful that its C7 Block offshore Mauritania could yield success soon. The Dauphin-1 exploratory well could notably be drilled there in a couple of years.

Unlocking Africa’s oil and gas potential is now imperative against the backdrop of the war in Ukraine and the resulting crude, diesel, and gas supply crunch. This has rendered European dependence on Russian energy untenable, creating a major opportunity for Africa to position itself as a crucial option to increase the supply to the global energy markets. However, significant challenges remain for the continent’s hydrocarbon producers to suddenly ramp up their production due to infrastructure, finance, and technology deficits. Countries with major LNG resources, such as Nigeria, Angola, Libya, and Algeria, suffer from limited and underdeveloped pipeline networks, refineries, jetties, terminals, and ports. Additionally, incentivizing foreign investment is often problematized by a host of risk factors, including political instability, local insecurity issues and financial institutions shifting investments from fossil fuels to renewables. Finally, securing the latest technology to facilitate local content development has proven cost prohibitive given the reliance on foreign intellectual property and the continual brain drain of key local human capital. All the above issues will be discussed at the 8th Africa Petroleum Congress and Exhibition (CAPE VIII) taking place from 16-19 May 2022 in Luanda, Angola.  The congress is organized by the African Petroleum Producers Organization (APPO), the government of the Republic of Angola (for the first time), and AME Trade Ltd. The three-day event will be centered around the theme of “Energy Transition: Challenges and Opportunities in the African Oil and Gas Industry,” and assemble experts from the national, regional, and international energy and oil and gas industries to deliberate the challenges and opportunities of the energy transition and the future of the oil and gas industry in Africa. CAPE VIII will unfold against the recession of the global pandemic that exacerbated record production declines across African hydrocarbon producing countries from 2020 to 2021. The annus horribilis was compounded by under-investment in exploration activities, leaving several of the continent’s biggest energy players struggling to cope with the post-lockdown surge in demand for hydrocarbons. Fortunately, APPO’s ambition to establish the continent as an energy hub regained significant headwind with a stellar upstream development outlook for 2022 and beyond. The congress will be the ideal platform for Africa’s leading oil and gas producers to confront the foregoing challenges and engender solutions to maximize its oil and gas resources. Amid the drive by developed economies towards decarbonization and net-zero policies, attending energy stakeholders will have the opportunity to reinforce the case for regional integrated supply chains and pooling resources to leverage the catalytic power of hydrocarbons in a sustainable manner. Supported by countless multinationals across the energy value chain and national oil companies, CAPE VIII will feature illuminating insight from a range of illustrious keynote speakers, who will mold the future landscape of energy in Africa and beyond. Keynote speakers at the conference will include: H.E. Diamantino Pedro Azevedo, Minister of Mineral and Petroleum Resources of Angola, President of APPO H.E. Mahamane Sani Mahamadou Issoufou, Minister of Petroleum, Energy and Renewable Energy Republic of Niger H.E. Samson Gwede Mantashe, Minister of Mineral Resources and Energy, South Africa H.E. Dr Matthew Opoku Prempeh, Minister of Energy, Ghana, H.E. Thomas Camara, Minister of Mines, Petroleum and Energy, Ivory Coast Dr. Omar Farouk Ibrahim, Secretary General, African Petroleum Producers Association (APPO) Ms.  Cany Jobe, Director of Exploration and Production , Gambia National Petroleum Corporation Mr. Edson R Dos Santosi, CEO, SOMOIL Dr. Ibrahim Mamane, Directeur Général, SONIDEP Mr. Osam Iyahen , Vice President, Oil & Gas, Africa Finance Corporation Mr. Bráulio de Brito, Chairman, Angola O&G Service Companies Association (AECIPA) Mr. Zakaria Dosso, Managing Director, AEICORP Mr. Matthieu Milandri, Head of Upstream Finance, Trafigura Mr. Yann Pierre Albert Livulibutt Yangari, Independent Consultant Mr. Dr. Babafemi Oyewole, the CEO of Energy Synergy Partners Tim Dixon, Director and General Manager, IEA Greenhouse Gas R&D Programme Confirmed National Oil Companies at CAPE VIII include. SONANGOL, Angola SNH, Cameroon SHT, Chad Petroci, Cote d’Ivoire SNPC, Congo NNPC, Nigeria Sonagol, Angola GE Petrol, Equatorial Guinea Sonagas, Equatorial Guinea CAPE VIII is sponsored by the continent’s leading oil and gas players including: SONANGOL, TOTAL ENERGIES, EXXONMOBIL, CHEVRON, EQUINOR, TRAFIGURA, SOMOIL, BRIMONT, SHEARWATER. Hawilti is a proud Communication Partner of Cape VIII.

Equinix has revealed yesterday its intention to expand into Africa by acquiring African data center and connectivity solutions provider MainOne. The acquisition is valued at $320m and is expected to close in Q1 2022. By acquiring MainOne, Equinix would gain a strong foothold in Nigeria, Ghana and Côte d’Ivoire where MainOne has already built data centers. The Nigeria-based company currently has three operational data centers in West Africa, with an additional facility in Ghana currently under construction. MainOne also owns and operates an extensive submarine network extending 7,000 kilometers from Nigeria to Portugal, as well as 1,200 kilometers of reliable terrestrial fiber network across southern Nigeria. The American company sees the move as its first step towards its long-term strategy of becoming a leading African carrier neutral digital infrastructure company. Under the terms of the transaction, MainOne’s management team, including CEO Funke Opeke, will continue to serve in their respective roles.

Ghana made its 2022 Budget Statement this week, forecasting an overall GDP growth of +5.8% next year on the back of higher industrial and mining output and stronger commodity prices. This is slightly under the IMF’s own forecast of +6.2% for Ghana in 2022. Without Pecan, oil production will keep declining But the country is also coming to terms with its inability to boost oil & gas output in the short-term. It forecasts an oil production of 59.51m barrels next year, or a daily average of 163,044 barrels of oil per day (bopd). This contrasts with the 2021 benchmark revenue crude oil output, set at 65.86m barrels, equivalent to a daily average of 177,700 bopd. Ghana’s projections of crude oil production have actually been revised down until 2025. While its 2021 Budget Statement assumed that output would remain flat and around 60m barrels a year in the short-term, new assumptions released yesterday expects oil production to drop to 55m barrels in 2023 and 2024 and to under 52m barrels in 2025. Source: Ministry of Finance, PIAC (2016-2020 figures represent actual output) The development of the offshore Pecan field by Aker Energy is the only project that can boost output in the short-term, but first oil will not be achieved before 2024 at the earliest. Earlier this year, the Parliament of Ghana granted approval for its national oil company GNPC to acquire 37% stake in the Deepwater Tano Cape Three Points (DWTCTP) block from Aker Energy. Hopes are that the transaction could help fast-track the project that has a projected peak production of 110,000 bopd. “First Oil from the Pecan field is expected in 2024, with a ramp-up of production occurring the following year in 2025,” Ghana said in its 2022 Budget Statement. Production decline offset by higher oil prices However, stronger commodity prices will help Ghana increase its oil revenue despite lower output. Ghana now bets on a benchmark oil price of over $60/bbl for the coming years, up from previous estimates of $55. Source: Ministry of Finance As a result, and despite decreasing oil output, the country is expecting to collect over $1bn a year from the oil industry from 2022 to 2025. These projections are higher than previous estimates that set oil revenue projections at only about $900m a year until 2024. Source: Ministry of Finance For more on Ghana’s industry and the projects driving industry activity, please log into your Hawilti+ research terminal.

Tullow Oil has announced today that it has exercised its right of pre-emption related to the sale of Occidental Petroleum’s interests in Ghana’s Deep Water Tano (DWT) Block to Kosmos Energy. As per the DWT Joint Operating Agreement (JOA), Tullow has pre-emption rights in respect of the 11.05% participating interest acquired by Kosmos Energy from Anadarko WCTP Company in the block last month. Tullow’s pre-emption rights are now expected to increase its share in the license by 7.7% (to a total of 54.8%). This would in turn increase Tullow’s equity interests in the Jubilee and TEN fields to 38.9% and 54.8%, respectively. Both fields are operated by Tullow Oil’s and are its most strategic assets. The company is currently executing a drilling campaign on both projects to increase output and has planned significant investment in their continued development until 2030. “The additional equity is expected to increase Group daily production by c.10% and generate over $250 million incremental free cash flow at $65/bbl for Tullow between 2022 and 2026, which will help to accelerate debt reduction,” Tullow Oil said in a statement today.

Kosmos Energy has just announced the close of a transaction by which it has acquired an additional 18% in the Jubilee Field and an additional 11% in the TEN Fields in Ghana from Occidental Petroleum (OXY) for a price of $550m. Both assets were previously chased by TotalEnergies as part of its broader acquisition of Anadarko Petroleum’s assets in Africa. However, the French major and OXY had mutually agreed in May 2020 to execute a waiver of the obligation to purchase and sell them, so that OXY could begin marketing their sale to other third parties. Both fields are served by a different floating, production, storage and offloading (FPSO) vessel and are operated by Tullow Oil. Jubilee achieved first oil in 2020 and produced an average of 71,000 barrels of oil per day (bopd) in Q2 2021 with production currently increasing as a result of an ongoing drilling campaign. TEN achieved first oil in 2016 and produced an average of 37,000 bopd in H1 2021. Source: PIAC Kosmos Energy is familiar with both assets and has been present in the licences since the exploratory phase several years ago. Subject to pre-empty rights, the transaction could increase the company’s interests in Jubilee to 42.1% and in TEN to 28.1%. Both projects have significant remaining potential and form the core of Tullow Oil’s growth and cash generation strategy this decade. “The acquired assets are expected to generate about $1bn of free cash flow by the end of 2026 at $65/bbl Brent,” Kosmos Energy said in a statement. The American independent also expects payback in less than three years if oil prices remain at an average of $65/bbl or above. By simplifying the partnerships that run both fields, maintaining the pace of investments to develop additional reserves is also expected to be easier. A key focus will notably be on additional gas monetization from both fields in order to support Ghana’s gas-to-power industry. Full details on both the Jubilee and TEN Fields Development are available in the “Projects” section within your Hawilti+ research terminal.

Ocean Yield’s Dhirubhai-1 FPSO, which had been contracted by Reliance Industries offshore India from September 2008 to September 2018, is the likely contender to be redeployed offshore Ghana for the development of the Deepwater Tano Cape Three Points block where lies the Pecan field. The vessel was converted in 2008 and has a oil production capacity of 60,000 barrels of oil per day (bopd). Ocean Yield is majority-owned by Aker Capital, whose company Aker Energy Ghana is the operator of the Deepwater Tano Cape Three Points block offshore Ghana. While KKR is set to take over the management of Ocean Yield from Aker Capital, Aker Energy still has an option to acquire the FPSO for its Ghanaian deep-water project. Aker Contracting FP ASA, an indirect subsidiary of Ocean Yield, and Aker Energy have notably entered into an agreement under which Aker Energy is granted an option to acquire the FPSO for $35m. However, the option is exercisable within a very particular timeframe: at the earliest 16 business days prior to settlement of KKR’s upcoming voluntary cash tender offer, and no later than 15 December 2021. Because Aker Energy had previously paid Ocean Yield $17.9m as compensation for prior options on the same FPSO and related services, Aker Energy’s total investment to purchase the FPSO will amount to $52.9m, shall the option by exercised. Discovered in the early 2010s by American independent Hess Corporation, the Pecan field is expected to be Ghana’s next major offshore oil & gas project. By the time the Aker Group acquired operatorship in 2018, Hess had already made seven discoveries, out of which all but one (Cob-1) had been declared commercial. The project has always been a priority for Ghana and targeted first oil by 2021, but suffered several delays, first because of the maritime boundary dispute between Ghana and Côte d’Ivoire, settled in 2017, then because of the Covid-19 pandemic. In March 2020, Aker Energy notably issued a notice to Yinson Holdings terminating the Letter of Intent for the FPSO’s charter, operations & maintenance contract it had initially planned to award to the Malaysian contractor. Since then, Aker Energy Ghana committed to finding a revised phased development to move the project forward, including via an alternate concept based on the utilisation of two small-sized FPSOs: one redeployed FPSO on the crest of Pecan in Phase 1 and another one in the North of Pecan to tie back additional resources in the northern part of the field in Phase 2. However, Ghanaian authorities have grown impatient and in August 2021, Minister of Energy Hon. Dr. Matthew Opoku Prempeh presented a paper to Ghana’s Parliament according to which the state-owned Ghana National Petroleum Corp (GNPC) would acquire a 37% additional interest in the Deep Water Tano/Cape Three Points (DWT/CTP) Block. The same day, Minister of Finance Hon Ken Ofori-Atta had presented a Loan Agreement between the Government of Ghana and GNPC Explorco for the grant of a loan of up to $1.65bn for the company to meet its payment obligation to acquire the shares in Aker Energy Ghana while also contributing to a Capex of $350m over the 2021-2024 period to achieve first oil from Pecan Phase 1.