Exxon Secures Ultra-Deep Ghana Block
US major ExxonMobil said January 18 it signed an agreement with the Ghanaian government for exploration and production rights on the Deepwater Cape Three Points (DCTP) offshore block.
It will own a 80% operating interest in the block, while 15% will go to state Ghana National Petroleum Company (GNPC) and 5% to a public company chosen by government.
Accra initiated direct talks two months ago with ExxonMobil about the DCTP block, which two other firms had already turned down. The ultra-deep block covers of 1,482 km2 in water depths of 2,000-4,000 metres some 150 km offshore. ExxonMobil thus joins firms such as Eni, Tullow and Kosmos operating offshore Ghana, although it can only start exploration once the agreement is ratified by parliament – expected before the end of 2018.
Ghana’s energy minister of energy told Citi Business News that ExxonMobil’s arrival will stimulate economic growth and contribute to the sector’s transformation, and that other upstream majors such as Shell and Chevron might follow. Exxon Mobil’s exploration chief Steve Greenlee said: "The addition of this block reaffirms ExxonMobil’s commitment to pursuing high-quality projects in areas with large resource potential. We are excited to partner with the government of Ghana as we employ our significant upstream experience and technological expertise in assessing the exploration opportunities in this block."
Exxon had to abandon a$4bn takeover deal for Kosmos in 2010, attracted by its stake in the Jubilee offshore field, after the deal was heavily opposed by the Ghanaian government.
CGG to Support Cameroon Licensing Round
Also January 18, French geosciences firm CGG was chosen to support Cameroon state SNH in its promotion of its 2018 licensing round in Rio del Rey and Douala/Kribi-Campo Basins. Eight free blocks are on offer, located in sedimentary basins offshore and onshore Cameroon. The licensing round opened January 15 2018 and will close on June 29 2018. Roadshows will be held in London on February 28 to March 2, and in Houston on March 7-9, with participation by both SNH and CGG.