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Ghana, Shell, Chevron Sign Deal to Advance South Deepwater Tano Exploration

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Ghana has signed a memorandum of understanding with Shell (SHEL), Chevron (CVX) and state-owned petroleum entities to advance exploration and appraisal work on the South Deepwater Tano block, Ghana National Petroleum said in a social media post on Thursday.

The block, located offshore, is estimated to hold over 3 billion barrels of hydrocarbon potential, according to Ghana National Petroleum, also known as the GNPC.

The agreement brings together the Government of Ghana, GNPC Ghana, GNPC Explorco, Shell Overseas Holdings and Chevron Sub-Saharan Africa Ventures.

The block covers about 3,482 square kilometers in the deep-to-ultra-deepwater Tano Basin off Ghana's Western Region, with water depths reaching nearly 3.5 kilometers. The conditions are expected to make exploration technically complex and capital-intensive, African Economy Inc. reported.

South Deepwater Tano already contains a confirmed oil discovery. AGM Petroleum drilled the Nyankom-1X well in 2019, encountering oil in two reservoirs, before relinquishing its interest in the block in 2023.

Under the new framework, Shell, Chevron, GNPC and GNPC Explorco will undertake further appraisal of the discovery and assess the block's broader oil and gas potential. The MoU provides for additional technical and commercial evaluation ahead of any decision on development.

The agreement reportedly comes as Ghana seeks to attract fresh investment into its upstream petroleum sector and expand exploration across prospective offshore areas. Oil and gas remain important sources of export earnings, government revenue and foreign investment.

Price: $93.07, Change: $+0.27, Percent Change: +0.29%

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