Akerenergy

(Accra/Oslo, 5 June 2020) Aker Energy Ghana Limited ("Aker Energy") reaffirms its commitment to finding a solution that will allow for the commencement of a phased development of the Pecan field offshore Ghana.

"In a time when most other E&P companies are putting development projects on the shelf due to the COVID-19 situation and historic low oil prices, Aker Energy and our partners, Lukoil, Fueltrade and GNPC, working closely with the government of Ghana, are actively pursuing a development concept where we can commence phase one of a phased development of the Pecan field," says Håvard Garseth, CEO of Aker Energy. "Although we have an altered timeline, we are on our way to finding a development concept with a breakeven price that is sustainable and resilient also in a low oil price environment."

In March, Aker Energy announced that a final investment decision (FID) for the Pecan field development project had been placed on hold, postponing the project. While no new date has been set for the FID, the company is working actively to confirm the feasibility of a phased Pecan field development by executing conceptual studies.

The phased development of the Pecan field and the utilisation of a redeployed FPSO vessel will substantially reduce the CAPEX and, hence, reduce the breakeven cost. In addition, it will increase the possibility of reaching a commercially feasible project that will allow for an investment decision. Aker Energy and partners are currently assessing several FPSO candidates for redeployment, and the final selection will be based on technical capabilities and cost.

While the original field development concept was based on a centralised FPSO supporting the development of the entire Pecan field, as well as tie-ins of all other area resources, the focus has shifted toward a phased development approach. This approach will enable Aker Energy to commence with one FPSO for Pecan in the south and expand to a second FPSO in the north after a few years, with tie-ins of additional discovered resources. The first FPSO will be deployed at around 115 kilometres offshore Ghana over a subsea production system installed in ultra-deep waters in depths ranging from 2,400 to 2,700 metres.

"Getting projects like the Pecan field in operation is key toward our mission of making Ghana a major producer in West Africa and Africa as a whole," says Dr. Mohammed Amin Adam, Deputy Minister of Energy.

"Along with our partners, we are optimistic that we will establish a workable concept so that we can finally see first oil in the fourth offshore field in Ghana," says Kadijah Amoah, Country Director in Ghana. "We remain committed to Ghana."