The Institute for Energy Policies and Research (INSTEPR) says all efforts should be made to acquire the 37% stake in the PECAN block and develop it with the partners. However, the institute has cautioned against buying 70% or any stake at all in the SDWT AGM block.
This advice is based on the fact the wells in the DWT/CTP have been appraised and the next stage is Plan of Development (PoD) for actual development of the field.
Executive Director of INSTEPR, Mr Kwadwo N. Poku canvassed this position in a statement issued on the proposed Ghana National Petroleum Company (GNPC) and Aker Energy/AGM deal.
According to him, phase 1 and 2 of the DWT/CTP block is a low-hanging fruit.
He charged GNPC to separate the DWT/CTP block, which AKER bought from HESS from the SDWT AGM block.
To him, these two blocks are covered by separate Petroleum Agreements and does not see why they should be bundled together.
According to him, the SDWT AGM block is a bad deal lying beneath the attractive PECAN field.
Mr Poku said the discovered volumes across the two blocks are 717 million barrels, which have been confirmed by drilling contingent resources and not prospects.
He noted that out of the 717 million barrels, approximately 250 million barrels would be developed in PECAN Phase 1.
According to him, the rest of the resources would be developed in Pecan Phase 2 and the Nyankom developments.
He noted that the oil in the Nyakom AGM Block may be 500 million barrels or less at a depth of 3,000 metres.
The only such developed field which has such depths is the Stones Field in the Gulf of Mexico, which was developed by Shell and is estimated to contain over two billion barrels of oil at a depth of 2,900 metres and has significant upside potential.
He also stated that there is currently no technology to produce oil at over 3,000-metre water depth.
He warned that by pursuing this deal, the GNPC is seeking to take 70% stake in a riskier block.
He urged baby steps at this point, with sights set on the future when Aker has done more exploration work on SDWT, and there’s more proven technology for ultra-deep-water development.
At that stage, we can engage them if they want to sell their shares in the block.
Source: The Finder