(Accra, 3rd July, 2023) On behalf of its partners, Pecan Energies, the operator of the Deepwater Tano/Cape Three Points (DWT/CTP) block offshore Ghana, is excited to announce the successful approval of the Plan of Development (PoD) for the DWT/CTP contract area by Ghanaian authorities.
“We are thrilled to receive the approval of the PoD for the DWT/CTP block by the Minister of Energy and the Ghanaian Authorities. This achievement demonstrates Africa Finance Corporation’s (AFC) de-risking capabilities and capacity to navigate complex challenges, leverage our expertise, and collaborate effectively with our partners to achieve shared objectives. We are excited about the potential GDP uplift of USD 10 billion for the Ghanaian economy from the DWT/CTP block and look forward to working closely with the government of Ghana to ensure the successful execution of this important project. With this milestone, we believe that the future of the Pecan and other associated fields on the Block shines bright, bringing with it promising economic prospects and sustainable growth opportunities for Ghana and its people” said Samaila Zubairu, President and Chief Executive Officer of AFC.
As the new owners of Pecan Energies, AFC, through its wholly-owned subsidiary, AFC Equity Investment Ltd (AFCEI), will now work towards a Final Investment Decision (FID) following extensive engagement with all relevant stakeholders and partners.
The PoD presents an overall plan for the phased development and production of the resources in the DWT/CTP contract area. The phased development will begin with the Pecan field in two phases, Phase 1a and Phase 1b. The Pecan field is the largest of several discoveries in the contract area with 268 million barrels expected to be produced in Phase 1a+1b with a CAPEX of USD 3.5 billion. In total, it is estimated that all discoveries in the DWT/CTP contract area have a recoverable resource potential of 550 million barrels.
The Pecan field, situated in ultra-deep waters ranging from 2,400 to 2,700 meters about 115 kilometers offshore Ghana, will be developed with a Floating Production Storage and Offloading (FPSO) vessel and a subsea production system (SPS).
“We have a highly competent technical team with field management and global deep water project experience to execute the development and production of the field. With AFC’s superior knowhow in investing in the upstream oil and gas sector combined with technical support from the vastly experienced Aker Group we are confident we can deliver the project on time, with quality and within cost,” assured Eiliv Gjesdal, Chief Executive Officer of Pecan Energies AS.
On the African continent, AFC has invested over USD 1 billion in the upstream oil and gas sector since 2007 through the deployment of innovative financial products that support the sustainable development of Africa’s vast resources within the framework of the energy transition, whilst retaining value on the continent.
“We have worked together as a team, overcoming considerable obstacles along the way. The approval of the PoD is a testament to the perseverance and dedication shown by the Pecan Energies team to the project. We remain committed to Ghana and look forward to working together with our partners towards first oil,” said Kadijah Amoah, Chief Executive Officer of Pecan Energies Ghana Limited.
AFC is a pan-African multilateral development finance institution with a proven track record in providing pragmatic solutions to Africa’s infrastructure deficit, having assembled a USD 10.5 billion portfolio of loans and other investments across six sectors.
The Corporation has 40 member countries. The Republic of Ghana became an AFC sovereign shareholder in 2018, having acceded to membership in 2011. AFC has invested in several projects in Ghana across various real sectors over the last 15 years, both as equity and debt providers. These projects include but are not limited to (i) the Kpone Independent Power Plant, where AFC, through AFCEI is the single largest shareholder in Cenpower Generation Company Limited (the special purpose vehicle set up to develop the project); (ii) the Takoradi Port Project, where AFC is the debt provider and a significant shareholder for the project company, Atlantic Terminal Services Limited; (iii) the expansion of the Kotoka International Airport, with AFC as a debt provider; and (iv) the Access LNG Project, as a debt provider.