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
Production from Canada’s Montney, Duvernay Gains Momentum
2024-01-05 - The dust has settled on acquisitions, and the leading players have publicized five-year plans that demonstrate a commitment to increasing production from Canada’s premier shale plays.
Athabasca Oil, Cenovus Energy Close Deal Creating Duvernay Pureplay
2024-02-08 - Athabasca Oil and Cenovus Energy plan to ramp up production from about 2,000 boe/d to 6,000 boe/d by 2025.
Chevron to Begin Marketing Shale-gas Assets in Canada's Duvernay
2024-01-19 - Chevron plans to put its Alberta, Canada, shale-gas business up for sale as it continues to streamline global operations.
Chevron's Duvernay Sale Seen Attracting Mid-sized Canadian Shale Operators
2024-01-25 - As Chevron Corp. markets its Duvernay shale assets, the U.S. oil major is most likely to find a buyer among a handful of mid-sized Canadian firms looking to capitalize on the region.
Analyst: Chevron Duvernay Shale Assets May Sell in $900MM Range
2024-01-29 - E&Ps are turning north toward Canadian shale plays as Lower 48 M&A opportunities shrink, and Chevron aims to monetize its footprint in Alberta’s Duvernay play.