Eni Ghana and Vitol Upstream Tano Ltd have taken another step towards expanding offshore exploration in Ghana after signing agreements with government covering two blocks in the Tano Basin.
The two Memoranda of Understanding cover GH WB 3 and GH WB 8, together spanning about 2,100 square kilometres of offshore acreage, with water depths ranging from 750 to 2,800 metres.
The agreements pave the way for the finalisation of Petroleum Agreements, bringing the two blocks closer to potential exploration activity and further investment in Ghana’s upstream petroleum sector.
The MoUs were signed on September 10 by Energy and Green Transition Minister John Jinapor on behalf of the government, in the presence of executives from the Ghana National Petroleum Corporation.
For Eni and Vitol, the acreage forms part of an exploration strategy that seeks to use existing petroleum infrastructure and established producing areas to develop nearby prospects.
The companies said the opportunities are aligned with Eni’s nearfield and Infrastructure-Led Exploration strategy, which aims to reduce the cost and infrastructure requirements associated with developing new discoveries by leveraging facilities already in place.
The latest agreements follow a Memorandum of Intent signed by the parties last year and deepen Eni’s involvement in Ghana’s upstream sector.
Eni has operated in Ghana since 2009 and currently has equity production of about 40,000 barrels of oil equivalent per day.
The company operates the Offshore Cape Three Points (OCTP) project, in which it holds a 44.4% interest. Vitol holds 35.6%, while the Ghana National Petroleum Corporation owns the remaining 20%.
The Tano Basin agreements could therefore provide the partners with additional exploration opportunities around an area where they already have operational experience and infrastructure.
For Ghana, the development could expand the country’s upstream investment pipeline and create opportunities for additional petroleum resources, although the commercial value of the two blocks will ultimately depend on exploration results.
The agreements also come as Ghana seeks to sustain investment in its upstream petroleum industry while improving the management and development of its hydrocarbon resources under the country’s legal and regulatory framework.
Beyond exploration and production, the Eni-Vitol partnership has also supported projects in Ghana focused on skills training, economic diversification, water and sanitation and access to energy.
The signing of the MoUs marks the latest step in the process. The next major milestone will be the finalisation of the Petroleum Agreements, followed by exploration work to determine the resource potential of the two offshore blocks.
