Aker Energy’s planned development of an oil field in Ghana faces delay due to a disagreement with authorities over regulations, Norwegian investment company Aker ASA said Nov.
Aker said in May it expected Ghanaian authorities to approve a $4.4 billion development plan for the offshore Pecan oil field by the end of the third quarter, with a start-up of crude production three years later.
While Aker initially aimed to tie in discoveries in a wider area to its planned Pecan production systems, it had failed to obtain changes in regulation that would facilitate such an approach, the company said.
“Some regulatory changes are likely to be proposed by the government of Ghana, though not to the extent requested ... Hence, Aker Energy is changing its strategic approach,” Aker ASA CEO Oeyvind Eriksen said in a statement.
The company will now concentrate on optimizing plans for a more limited development, focusing on the estimated 450 million to 500 million barrels of oil equivalents already found, it added.
“The change in strategy is likely to trigger delays, but I am confident that it will de-risk the project and, hence, protect significant values in Ghana,” Eriksen said.
Aker Energy, which has so far concentrated on finding and developing its own oil reserves, will also change its strategy in order to pursue potential mergers and acquisitions, Eriksen said.
Recommended Reading
Activist Group Accuses Shell of Misleading Investors on Renewables
2023-02-01 - Like other leading European energy companies, Shell is aiming for rapid expansion of its low-carbon and renewables business as part of efforts to reduce greenhouse gas emissions over the coming decades.
China's CO2 Emissions Fall But Policies Still Not Aligned with Long-term Goals
2022-11-21 - While China has reached landmarks in implementing clean energy and electric vehicles, it is still behind in using cola-fired power, iron and steel.
Has Green Hydrogen Sprung a Leak?
2022-12-22 - According to scientific studies, the benefits of green hydrogen dissipate if 10% of production, transportation, storage or usage leaks occur.
Decarbonization Technology Drives Energy Transition Investment
2022-11-17 - Former BP chief and 8 Rivers Capital CEO share insight on decarbonization investments as well as problems and solutions to lowering emissions.
Investors Ramp Up Pressure on Big Oil Firms to Set 2030 Climate Targets
2022-12-19 - Big oil's 2030 emissions targets are still not aligned with the UN's global warming ambitions, says Follow This.