U.S. oil supermajor ExxonMobil and the government of Ghana last week signed an agreement for the acquisition of exploration and production rights for the Deepwater Cape Three Points (DWCTP) block, Kallanish Energy reports.
The deal still needs to be ratified by Ghana’s parliament, but ExxonMobil expects to commence exploration activities, including acquisition of seismic data and analysis, this year. The company didn’t disclose financial details.
The oilfield, covering roughly 366,000 acres (1,482 square kilometers), is located 57 miles off the coast of Ghana in water depths ranging from 5,085 feet to 9,350 feet (1,550 meters to 2,850 meters).
“The addition of this block reaffirms ExxonMobil’s commitment to pursuing high-quality projects in areas with large resource potential,” said Steve Greenlee, president of ExxonMobil Exploration Co.
“We are excited to partner with the government of Ghana as we employ our significant upstream experience and technological expertise in assessing the exploration opportunities in this block,” he added.
The supermajor operates the block with an 80% stake, in partnership with Ghana National Petroleum Corp. (15%). ExxonMobil, with the help of the government, will select a local partner to acquire the remaining 5% stake in the block.
This is the first agreement signed after new legislation was approved last September setting a water boundary favoring Ghana in a dispute with its neighbor Ivory Coast.
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