Aker submits $4.4bn plan to develop Pecan oil field

Aker Energy Ghana Limited, as Operator on behalf of its partners, Ghana National Petroleum Corporation (GNPC), Lukoil Overseas Ghana Tano Limited and Fueltrade Limited, on Thursday, 28 March 2019, submitted an Integrated Plan of Development and Operations (PDO) to the Ghanaian authorities for the Deepwater Tano / Cape Three Points (DWT/CTP) block offshore Ghana.

“This is a proud day for Aker Energy and our partners. After tremendous teamwork and strong collaboration with partners and Ghanaian authorities, we have submitted a comprehensive plan of development and operation. The plan will, once approved, ensure an efficient development and production of the Pecan field and further optimisation of the DWT/CTP petroleum resources in a way that will deliver value to the people of Ghana and to us and our partners,” said Jan Arve Haugan, Chief Executive Officer at Aker Energy.

The PDO was submitted and presented to the Minister of Energy, John Peter Amewu, at the Ministry of Energy in Accra, Ghana.

“We are very satisfied to have reached this milestone together with Aker Energy and its partners. The submission of the integrated PDO has been a result of collaboration between the Contractors, GNPC, relevant agencies and the Ministry. The Pecan field will be the fourth producing oil field offshore Ghana and will strongly benefit the people of Ghana,” says Hon. John Peter Amewu, Minister of Energy in Ghana.

Integrated PDO for a phased development

The integrated PDO presents an overall plan for a phased development and production of the resources in the DWT/CTP contract area. The phased development plan will start with the development of the Pecan field as a firm phase one, being the largest of several discoveries in the area.

The PDO is subject to approval from relevant Ghanaian authorities. Upon PDO approval, the partners will initiate a process to make a final investment decision (FID). First oil from the Pecan field is estimated 35 months after the FID is made.

The main Pecan field, located in ultra-deep waters ranging from 2,400 to 2,700 metres about 115 kilometres offshore Ghana, will be developed with a Floating Production Storage and Offloading (FPSO) vessel and a subsea production system (SPS). The FPSO will be the centre for processing and exporting of crude oil from the field. The development of the Pecan field will comprise of up to 26 subsea wells. It is planned for 14 advanced, horizontal oil producers and 12 injectors with alternating water and gas injection (WAG), and the use of multiphase pumps as artificial lift, to maximise oil production.

Maximising oil production for the long-term

Total reserves from the Pecan field development are estimated to 334 million barrels of oil, and plateau production is estimated to 110,000 barrels of oil per day. Production from the field is expected to last for more than 25 years. The total investments (CAPEX) to develop these reserves are estimated to USD 4.4 billion, excluding the charter rate for a leased FPSO.

The Pecan field centre will have the flexibility to tie-in the subsequent development of resources. In addition to the reserves to be developed in the first phase, the area holds discovered contingent resources (2C) of 110-210 million barrels of oil equivalent (mmboe), combined resulting in an estimated volume base of approximately 450–550 mmboe. Total resources in the area have the potential to increase to between 600-1000 mmboe, provided successful appraisal drilling activity. Data analysis and appraisal drilling are currently ongoing at Pecan South and Pecan South East.

“In addition to the FPSO for the Pecan field development, Aker Energy has entered into an option agreement with Ocean Yield ASA for a second FPSO, Dhirubai-1. If the option is exercised, Dhirubai-1 could either be used to accelerate production or for other, potential developments dependent on volumes and geographical distribution of these,” Mr Haugan says.

Beyond local content

Aker Energy and partners expect the Pecan field development and subsequent phases to provide significant proceeds to Ghana. Furthermore, the partners have strong ambitions for developing a national oil and gas industry in Ghana.

“Aker Energy has a long-term ambition to go beyond regulatory requirements to develop the local oil and gas industry, through both investments and transfer of technology, know-how and skills. Therefore, our owner, Aker ASA, has recently initiated plans to establish a separate investment company, Aker Ghana Industrial Corporation, to support the local industry,” Mr. Haugan concludes.

Aker Energy Ghana Limited is the operator under the DWT/CTP Petroleum Agreement with a 50% participating interest. Its partners are Lukoil Overseas Ghana Tano Limited (38%), the Ghana National Petroleum Corporation (GNPC) (10%) and Fueltrade Limited (2%).

About Aker Energy

Aker Energy Ghana Ltd., a subsidiary of Norwegian-based oil exploration and production firm, Aker Energy AS, is the operator of the Deepwater Tano Cape Three Points (DWT/CTP) Petroleum Agreement, with a 50 per cent participating interest in the DWT/CTP Petroleum Agreement. Aker Energy aims to become the oil and gas operator of choice offshore Ghana, by maturing and producing resources in a safe, efficient and reliable manner to the benefit of the company, partners and the people of Ghana. Aker Energy has offices in Oslo, Norway and Accra, Ghana.