Aker Energy Delays Filing Ghana Field Plan Over Lukoil Involvement

Aker Energy Delays Filing Ghana Field Plan Over Lukoil Involvement
Aker Energy has delayed the submission of its development plan for the Pecan field off Ghana due to the involvement of Russia's Lukoil.

Norwegian oil and gas company Aker Energy has opted to delay the submission of its prepared development plan for the Pecan field offshore Ghana due to the involvement of Russian oil and gas company Lukoil.

Aker Energy, controlled by Aker ASA, holds a 50 percent participating interest in the Deepwater Tano/Cape Three Point (DWT/CTP) block in Ghana which includes the Pecan development project. Its partners in the project are Lukoil with 38 percent, Fueltrade with 2 percent, and the Ghana National Petroleum Corporation owned the remaining 10 percent.

According to previous information provided by Aker Energy, the Pecan field will be developed with a re-deployed FPSO connected to a subsea production system 8,900 feet below sea level.

Aker ASA in its second quarter financial report stated that Aker Energy already completed the front-end engineering and design for the Pecan field development and prepared a revised Plan of Development for the DWT/CTP block.

An integrated POD for the DWT/CTP block was initially submitted to Ghana’s authorities in March 2019. It entailed a phased development and production of the resources in the DWT/CTP contract area, which would start with the Pecan field as phase one.

In 2020, Aker postponed the project FID when the Covid-19 pandemic hit and concurrently terminated an agreement with Yinson to provide an FPSO for the project. While it was valid, the contract was supposed to be for a firm duration of ten years followed by five yearly extension options.

In June of that year, Aker Energy announced it would create a new solution for the start of a phased development of the Pecan field. The original field development concept was based on a centralized FPSO which would assist with the development of the entire field including tie-ins of all other area resources. Now, the new PDO focused on a phased development approach.

The company said in the new plan that one Pecan FPSO would be dispatched in the southern part and later expand to a second FPSO in the north after a few years, with tie-ins of additional discovered resources.

Because of the uncertainties arising due to issues concerning the war in Ukraine and Lukoil's 38 percent interest in the license, the POD is not planned to be submitted until the challenges have been resolved. The Minister of Energy has granted an extension of the POD delivery date until September 30, 2022.

Lukoil is listed as one of the entities subject to U.S. energy sector sanctions under Directive 4 under Executive Order 13662. However, these restrictions will not apply to the DWT/CTP project due to the project being initiated before January 29, 2018. Aker Energy will comply with all Norwegian and international sanctions applicable for Aker Energy and the DWT/CTP block in Ghana.

To contact the author, email bojan.lepic@rigzone.com



WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.