West Cape Three Points Petroleum Agreement

The chairman of the Mining and Energy Committee, Dr Kwabena Donkor, who had requested the adoption of the committee`s report on the agreement, said the committee had noted that the oil agreement included provisions for the effective participation of the GNPC in the management of oil activities related to the bloc. The agreement covers the Three Points Deep Water Building, which is located approximately 944 square kilometres in the Three Points Basin of Cape Tano in the Western Region. Kosmos and its partners will conduct a 1,000-square-kilometer 3D seismic survey later this year, as part of the initial phase of a seven-year exploration agreement. After processing and interpreting the seismic data, Kosmos plans to conduct an exploration well on the block, which is located about eight kilometers (five miles) off the Ghanaian coast and 95 kilometers (59 miles) southwest of the port city of Takoradi. The exploration period has been divided into three phases, to be the first exploration period, which is the first two and a half years, the first extension period, which is the next two years, and the second extension period, which is expected to last a year and a half. For his part, Sekondi MP Papa Owusu Ankomah also expressed concern about how the country`s oil blocks are spent by oil companies on the exploration and production of hydrocarbon resources. Energy and Petroleum Minister Emmanuel Armah Buah said in a message: “The government has always adhered to the Constitution, GNPC laws, Petroleum Commission laws, environmental protection laws, impact assessment laws and other regulations, including to grant oil exploration rights to oil companies.” The former attorney general said the current structure, in which oil companies were selected without resorting to open tenders, did not allow the country to get good value for money. Houston-based oil and gas company Vaalco Energy has entered into a purchase agreement in exchange for an acquisition. The agreement has a total duration of 25 years, subject to the discovery of oil in the first seven years of the exploration period and the contract expires after seven years if no commercial discovery is made.

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