Aker Energy Eyes Offshore Ghana Options

Aker Energy reported Friday that it remains on course to find a way to launch the phased development of the Pecan field offshore Ghana.

In early April, Aker cancelled its floating production, storage and offloading (FPSO) vessel charter for the Pecan project with Yinson Holdings Berhad (YHB). The company had revealed the preceding month that the final investment decision (FID) for the West Africa development was on hold. It stated Friday that it is executing conceptual studies in an effort to confirm the feasibility of a phased Pecan field development.

“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 (Ghana National Petroleum Corp.), 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,” Aker Energy CEO remarked in a written statement emailed to Rigzone. “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 price environment.”

The original field development concept for Pecan hinged on a centralized FPSO supporting the development of the entire field and tie-ins of other area resources, Aker stated. Focusing instead on a phased development approach will allow Aker – via its Aker Energy Ghana Ltd. subsidiary – to start with one FPSO for Pecan in the south and expand to a second FPSO in the north after a few years, tying in new discoveries, the company noted.

“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,” commented Kadijah Amoah, Aker’s Ghana country director. “We remain committed to Ghana.”

Aker pointed out the first FPSO will be deployed approximately 115 kilometers offshore Ghana over a subsea production system installed in waters whose depths range from 2,400 to 2,700 meters. It contends that phased development and utilization of a redeployed FPSO will substantially lower capital expenditures and the breakeven cost. The firm, which noted that several FPSO candidates are being assessed for redeployment, added that such an approach will boost the possibility of reaching a commercially feasible project that will allow for an investment decision.

“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,” noted Mohammed Amin Adam, Ghana’s deputy energy minister.

To contact the author, email mveazey@rigzone.com.