Another block in the country’s Cape Three Points oilfield, Eban-Akoma, has been declared commercially viable. 

The declaration was submitted by the Joint Venture (JV) Partners made up of Eni Ghana Exploration & Production Ltd, Vitol Upstream Tano Ltd, Woodfields Upstream Ghana Ltd, and GNPC Exploration & Production Company Ltd (Explorco), in collaboration with the Ghana National Petroleum Corporation (GNPC).

The partners first found oil on Cape Three Points Block 4 (CTP-B4) around 2022, but appraisal works delayed until recently.

The Ministry of Energy and Green Transition, which announced this in a press statement last Friday, said the JV partners submitted the Declaration of Commerciality to the ministry on July 3, this year, following the successful completion of the Eban-Akoma Appraisal Programme pursuant to the Petroleum (Exploration and Production) Act, 2016 (Act 919) and the CTP-B4 Petroleum Agreement.

“The appraisal confirms the commercial viability of hydrocarbons discovered in the Eban-1X (oil) and Akoma-1X (gas and condensate) wells, paving the way for the development of new domestic energy sources,” the statement signed by Spokesperson and Head of Communication of the Ministry, Richmond Rockson, stated.

The Minister of Energy, John Abdulai Jinapor, described the declaration as a clear testament to the government’s commitment to the sustainable development of Ghana’s hydrocarbon resources.

“The Declaration of Commerciality for the Eban-Akoma discoveries is a major boost to our oil and gas sector.

It highlights the immense potential of our offshore resources to fuel economic transformation, enhance energy security, and drive Ghana’s industrialisation agenda. 

“We commend the JV Partners and GNPC for their dedication to this strategic national asset,” the minister stated. 

Development plan

Following the declaration, the JV partners intend to initiate the preparation of a comprehensive Plan of Development (PoD), which will focus on optimal resource recovery, value maximisation, and the promotion of local content participation in line with national policy.

The ministry said it would work closely with the Petroleum Commission and GNPC, continue to provide the necessary oversight and support to ensure that the development of the Eban-Akoma project was conducted efficiently and in alignment with government priorities.

The statement said further technical and commercial evaluations would be undertaken to finalise a development framework that was mutually beneficial and aligned with Ghana’s long-term energy strategy.

This milestone underscores the government’s unwavering commitment to fostering a transparent, investor-friendly and resilient energy sector that delivers long-term value for the Ghanaian people.

Expert

Energy Analyst, Benjamin Boakye, called on the government to take advantage of the high investor interest in the country’s upstream oil and gas sector by international oil and gas companies (IOCs) to revive the sector for the benefit of the country.

He said more than eight years of no exploration activities in the country’s upstream was an avoidable setback, therefore, resuming oil and gas exploration and production starting with the appraisal of a long-standing discovery and declaration of commerciality would boost revenue.

With the country currently trying to ensure sustainable power, renewed interest in the upstream activities would enhance the country's energy security by providing a stable source of energy as the government resolves to build the second gas processing plant at Atuabo.

Stable industry 

The current posture of the government to make the environment more friendly to IOCs, Mr Boakye said, would ensure a stable and attractive oil and gas industry that would attract foreign investors, and bring in much-needed capital and expertise to develop the sector for mutual benefit.

Mr Boakye, who is the Executive Director of the Centre for Energy Policy (ACEP), said the CTP-B4 was not new.

“This appraisal could have been done two years back, when ENI Ghana wanted to, but government at the time did not allow it.

“Politically, there was no support for it and that is why Eni shifted focus to neighbouring Cote d’Ivoire and the truth is if we had allowed them, the field would have been up by now,” he said.

The inability to allow Eni Ghana and partners to carry out the activities they just finished resulted in the country's inability to increase production and revenue – “we are lucky eventually the process has started,” Mr Boakye added.

Asked what should be the way forward for the country’s upstream sector to attract the once bullish sentiments, he said, “As a matter of urgency, government should take advantage of the prevailing appetite of investor community to make sure that blocks are awarded.”