Aker Energy assumes full control of Hess Ghana’s assets

New operators of the Deepwater Tano Cape Three Points block (DWT/CTP), Aker Energy Ghana, are to submit a plan of development (PoD) on the block to the government in the second half of this year after successfully buying Hess Ghana out of the block.

The PoD will request government’s approval for expenditure itemisations and development techniques that will be used in the ultra-deep-water area, where discovered resources are estimated to be around 550 million barrels of oil
equivalent.

First oil from the block is anticipated in the fourth quarter of 2021, the Chief Executive Officer of Aker Energy, Mr Jan Arve Haugan said in a statement copied to GraphicOnline.

“We are very pleased to announce the completion of our acquisition of Hess Ghana, marking our formal entrance as an exploration and production (E&P) company in Ghana,” he said in the June 1 statement.

He explained that Aker Energy Ghana, which acquired Hess Ghana’s 50 per cent stake in the block, was now prepared to lead oil E&P activities in the country and envisages to “operate several field developments in Ghana in the future.”

The acquisition was valued at $100 million and affected only Hess Ghana’s assets.

The statement added that following the successful completion of the transaction in February this year, Aker Energy Ghana, a subsidiary of Aker Energy AS, will now work with the other partners – Lukoil (38%), Fuel Trade (2%) and the Ghana National Petroleum Corporation (10%) – to develop the block for oil production to begin.

Below is the full statement from the Aker Energy Ghana

PRESS RELEASE
AKER ENERGY BECOMES OPERATOR OF THE DWT/CTP BLOCK IN GHANA AFTER ACQUIRING HESS GHANA

(Oslo, 1 June 201a8) Aker Energy Ghana AS, a subsidiary of Aker Energy AS (“Aker Energy”) has completed the acquisition of Hess Ghana, the operator of the Deepwater Tano Cape Three Points block ("DWT/CTP") with a 50 percent participating interest in the license. Aker Energy will work closely with licence partners and authorities to submit a Plan of Development (“PoD”) in second half of 2018 with anticipated first oil in fourth quarter of 2021.

“We are very pleased to announce the completion of our acquisition of Hess Ghana, marking our formal entrance as an E&P company in Ghana. Our organisation, counting some 90 people at the moment, has already worked intensely for months to progress the PoD for the Pecan field together with Ghana National Petroleum Corporation and the other licence partners. We will now step up our activity by recruiting experienced people both in Oslo and Accra that will play important roles in helping us develop into the operator of choice in Ghana,” says Jan Arve Haugan, CEO of Aker Energy.

Aker Energy was founded in February 2018 as a 50-50 joint venture between Aker ASA and TRG AS. The transaction, as announced on 19 February 2018, has a total cash consideration of USD 100 million, where USD 25 million was paid upon closing of the transaction and a further USD 75 million will be payable upon approval of the PoD for the DWT/CTP block. Completion of the transaction is an important first step for the company, which has a long-term commitment to create value for its owners, partners, society and local communities from its operations in Ghana.
The DWT/CTP block
Aker Energy is now the operator of the DWT/CTP block with a 50 percent interest through Hess Ghana (which will change its name to Aker Energy Ghana Limited) and will work closely with the other partners in Lukoil (38%), Fuel Trade (2%) and Ghana National Petroleum Corporation (10%) towards a PoD submission in second half of 2018 with anticipated first oil in 2021.

“The development concept will build on experience derived from operations on the Norwegian Continental Shelf. At the same time, the Pecan discovery is located in ultra-deep waters offshore of Ghana, challenging us to explore new and innovative ideas to identify the best development solution. Our team is built on decades of oil and gas know-how and expertise from projects and operations all over the world, and we are privileged to access expertise from all the Aker related companies and from Hess in this start-up phase,” says Haugan.

The DWT/CTP block is centrally located within the Tano Basin, a prolific petroleum region offshore Ghana, with gross discovered contingent resources estimated to be 550 million barrels of oil equivalent (2C) and a remaining prospective volume upside of around 400 million barrels. Aker Energy is planning to develop the Pecan field in the DWT/CTP block with a purpose-built FPSO connected to a subsea production system at 2,400 meters below sea level offshore Ghana. The company will further analyse the targets throughout 2018 and is currently planning an appraisal drilling campaign.

Operating model
Aker Energy will base its operating model on that of Aker BP, a company that on record time has become one of Europe's leading independent listed oil companies and Aker ASA’s largest portfolio company, building its operations on an integrated, flexible and efficient structure for decision making. The integration is based on strong alliances with suppliers, developing cost efficient solutions. Furthermore, Aker Energy intends to be at the forefront of the digitalisation of safe and efficient oil and gas operations.

“We envisage operating several field developments in Ghana in the future, and we aim to provide numerous opportunities for local staff and services on the offshore installations, base operations for support of offshore operations and local fabrication. In Aker Energy, we are committed to transfer our experience from the NCS to contribute to the development of the Ghanaian oil and gas industry by cooperating with local suppliers,” Haugan concludes.

ENDS
For further information, please contact:

Håkon Høgetveit, Head of Communications at Aker Energy AS
Phone: +47 476 29 348

About Aker Energy AS
Aker Energy AS was founded in February 2018 and is established as the newest member of the Aker Group. The E&P company aims to become the offshore oil and gas operator of choice in Ghana. It is characterised by the entrepreneurial and flexible organisation that is synonymous with member companies of the Aker Group. Aker Energy is operational with offices in Oslo, Norway and Accra, Ghana. For more information, please visit www.akerenergy.com.

Aker Energy AS
Oksenøyveien 10, NO-1366 Lysaker, PO Box 243, NO-1326 Lysaker www.akerenergy.com
Registered in Norway, registration no. NO 920 243 754 VAT