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Ghana secures US $100m to develop oil projects

Ghana has secured US $100m from the Africa Finance Corporation (AFC) to be invested in crude oil and natural gas production from Ghana’s Deepwater Tano Cape Three Points (DWTCTP) block.

President and Chief Executive Officer (CEO) of the AFC, Mr Samaila Zubairu confirmed the the reports and said that the funds will be granted to oil production company, Aker Energy A.S. for the development. The investment also aligns with the AFC’s overall natural resources strategy, which entailed building a portfolio of value-added assets across the energy value chain.

“By taking an early equity financier role in operational or near-operational upstream assets, the AFC can enhance the revenue potential of African states to generate revenue required for investment in infrastructure and social services for its growing populations,” said Mr Samaila.

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Crude oil projects

The block, offshore Cape Three Points in the Western Region, contains multiple oil fields. The funds will be used by Aker Energy to finance the development of the block owned by joint venture partners, including Aker Energy (50%), Lukoil (38%), Fueltrade (2%) and a 10% carried interest for the Ghana National Petroleum Corporation (GNPC).

The Pecan field, will be the field to be developed in the first phase. It is the most appraised in the DWTCTP block and contains reserves of about 334 million barrels of oil equivalent. The DWTCTP field is one of Ghana’s principal hydrocarbon assets and is expected to contribute to near-term target of an annual production volume of 500,000 barrels of oil equivalent per day.

Ghana became a sovereign shareholder in the AFC last year, having acceded to membership in 2011, hence its eligibility to access funding from the corporation. The government will also benefit from the Aker project through increased revenue and government royalty and taxation income.



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