PETROLEUM CONTRACTS MONITOR, 2019; A PUBLIC INTEREST REPORT

No. Contract Area Contract Parties (Operator) Effective Date/Initial Exploration Period Minimum Exploration Program (Initial Phase) Minimum Expenditure Observations as of 2017 2019 update 2020 update
No. Contract Area Contract Parties (Operator) Effective Date/Initial Exploration Period Minimum Exploration Program (Initial Phase) Minimum Expenditure Observations as of 2017 2019 update 2020 update
1 Expanded Shallow Water Tano Block (1,508sqkm) Erin Energy Ghana Ltd, EXPLORCP and GNPC Effective Date: 23/Jan/15 Initial Exploration Period (2 years+2 years): January 23, 2015 – January 22, 2019 (a) Reprocess existing 2D and acquire 1500sqkm of 3D seismic; (b) Drill one exploration well $30,000,000 This Block was affected by the Preliminary ruling of the International Tribunal for the Law of the Sea (ITLOS) which placed a moratorium on drilling new wells in the disputed area. The company got extension to continue working on the block. The contractor did not fulfil the minimum work obligation even after extension to accommodate the ITLOS injunction. The Ministry has not provided update as to why the contractor still holds the block. No drilling has been undertaken N/A
2 Central Tano Block AMNI Int Petroleum Dev. Company and GNPC Effective Date: 21/Mar/15 Initial Exploration Period (3 years+2 years extension): March 21,2015 - March 20, 2020 (a) License 3D seismic data over Contract Area (about 277.9sqkm); (b) Drill two (2) Exploration Wells $150,000,000 Before its Initial exploration period end in 2018, the company exploration period was extended in 2016 to 2020. The contract area also falls within the area affected by ITLOS case. The contractor did not fulfil the minimum work obligation even after extension to accommodate the ITLOS injunction. The Ministry has not provided update as to why the contractor still holds the block N/A
3 Deepwater Tano-CTP Block (3000sqkm) Hess Ghana Ltd, LukOil, Fuel Trade and GNPC Effective Date: 18/Jul/06 Appraisal/Pre-development Period (3 years from Notice of Discovery). Has 6 months after ITLOS ruling to submit POD (a) 3D ‘Broadband’ seismic acquisition (b) Drilling of 3 appraisal wells (2 in the Pecan area and 1 at Almond) (c) Reprocessing of legacy 3D seismic (d) Well data integration of all data (e) Reservoir simulation studies (f) Geochemistry study $32,000,000 This company made successful discovery but could not progress to field development because of the ITLOS’s preliminary injunction. The company can now go ahead to submit Plan of development Aker acquired the interest of Hess in the block and proceeded to complete appraisals studies. Programme of Development (PoD) was submitted to government. The PoD was not approved. Aker has to revise and resubmit the PoD N/A
4 South Deepwater Tano (3,482sqkm) AGM Petroleum Ghana Ltd, EXPLORCO and GNPC Effective Date: 24/Jan/2014 Initial Exploration Period (3 years+2 years extension): January 24,2014 – January 23, 2019 (a) Acquire, process and interpret 750sqkm of 3D seismic data (b) Drill a minimum of two (2) Exploration Well $259,000,000 The company was also affected by ITLOS ruling. It got extension into the second phase in 2016. The company reports it is analyzing seismic data with plans to acquire 3D data in 2017 The contractor did not fulfil the minimum work obligation even after extension to accommodate the ITLOS injunction. Petrica acquired the interest of AGM and subsequently renegotiated the agreement; largely the fiscal package. A new minimum work obligation has been negotiated N/A
5 South-West Tano Block GNPC GOSCO, Heritage E&P, EXPLORCO, Blue Star and Effective Date: 05/Feb/15 Initial Exploration Period (2.5 years+2 years extension): February 5, 2015 – August 4, 2019 (a) Reprocess up to 175sqkm of 3D data (b) Drill one (1) Exploration Well $80,000,000 The initial Exploration phase has been extended by 2 years due to ITLOS. Geophysical and Geological (G&G) studies are ongoing for prospect evaluation. The contractor did not fulfil the minimum work obligation even after 2 years extension though the contract area was not in dispute. The Ministry has not provided update as to why the contractor still holds the block. No drilling has been undertaken N/A
6 Shallow Water Cape Three Points Block (1500sqkm) Sahara and GNPC Effective Date: 18/Jul/14 Initial Exploration Period (3 years): July 18, 2014 – July 17, 2017 (a) Reprocess up to 175sqkm of 3D data (b) Drill one (1) Exploration Well $32,000,000 The Company has defaulted in its work and financial obligations. The initial period ended in July 2017. It is not clear whether they will be given extension after failing to deliver on the block The contractor did not fulfil the minimum work obligation in first the phase which expired in 2017. The Ministry of Eenergy has not provided update on the status of the agreement. However, the map of the western basin still shows that the contract area is own by Sahara N/A
7 East Cape Three Point (1,565sqkm) Medea Development Ltd, Cola Natural Resources and GNPC Effective Date: 24/Sep/13 Initial Exploration Period (3 years+ 1 year extension): September 24, 2013 – September 23, 2017 (a) Acquire 1200sqkm of 3D seismic data (b) Drill one (1) Exploration Well (c) Conduct geological and geophysical studies $25,000,000 The company is looking for further extension to initiate drilling its first exploratory well after 4 years of holding on to the block. The company acquired 3D seismic data and got extension to process the data and execute its drilling of the required well. There has been no drilling to date N/A
8 South West Saltpond Block Brittania-U Ghana Ltd (BUGL) and GNPC Effective Date: 17/Jul/14 (after 27 months extension) Initial Exploration Period (3 years): October 17, 2016 – October 16, 2019 (a) Reprocess 800km of existing 2D seismic data (b) Acquire and process 1500sqkm of new 3D seismic data (c) Drill one (1) exploration well $40,000,000 After first extension the company is still doing Seismic data interpretation. It is not clear how they got the extension without spending the minimum expenditure requirement. The contractor did not fulfil the full extent of the minimum work obligation. No drilling has been undertaken N/A
9 Cape Three Points Block 4 (1,127sqkm) Eni Ghana, Vitol Upstream, EXPLORCO, WoodFields Upstream Ghana and GNPC Effective Date: 14/Apr/16 Initial Exploration Period (3 years): April 14, 2016 – April 13, 2019 (a) Acquire, process and interpret 1000sqkm of 3D seismic (b) Drill one (1) Exploration Well in the Contract Area $45,000,000 This contract is still in the initial phase. Seismic data acquisition was planned for 2017. The contractor acquired the seismic data and completed first drilling towards the end of the initial phase. The drilling encountered gas and condensate discovery which may be subject to appraisal in the exploration period. N/A
10 Onshore/Offshore Keta Delta Block (3000sqkm) Swiss African Oil Company Limited (SWAOCO) & PET Volta Investment Ltd. Effective Date: 01/Apr/16 Initial Exploration Period (3 years): April 1, 2016 – March 31, 2019 (a) Acquire, process and interpret 1100sqkm of 2D seismic (b) Drill one (1) Exploration Well $40,000,000 Activities ongoing are seismic survey design & tendering, legacy data reprocessing and environmental impact assessment design & tendering The contractor has defaulted on the minimum work obligations. No progress information on the interpretation of legacy data but no drilling has been made. N/A
11 Offshore Cape Three Points South Block UB Resources, Houston Drilling Management, Royalgate Ghana Limited and GNPC Effective Date: 18/Jul/14 Initial Exploration (3 years): July 18, 2014 – July 17, 2017 (a) License and reprocess existing 600sqkm of 3D seismic data relating to the Contract Area (b) Acquire and reprocess new seismic data (if deemed necessary) (c) Drill one (1) Exploration Well $80,000,000 The company has defaulted in its work and financial obligation. They still claim they are doing data interpretation The contractor has defaulted on the minimum work obligations. No drilling has been made. N/A
12 South-West Cape Three Points Block Eco-Atlantic Oil, A-Z Petroleum, EXPLORCO, PetroGulf and GNPC Effective Date: 22/Mar/15 Initial Exploration Period (2.5 years): March 22, 2015 – September 21, 2017 (a) License and reprocess existing 850sqkm of 3D seismic data relating to the Contract Area (b) Reprocess 850sqkm 3D seismic data (c) Drill one (1) Exploration Well $65,000,000 The company has defaulted in its work and financial obligation. They still claim they are doing data interpretation. The contractor commenced reprocessing of existing seismic data. No drilling has still been made. N/A
13 West Cape Three Points Block 2 (673sqkm) Springfield E&P, EXPLORCO and GNPC Effective Date: 26/Jul/16 Initial Exploration Period (2.5 years + 2 years extension): July 26, 2016 – January 25, 2021 (a) Drill one (1) Exploration Well (b) Conduct geological and geophysical studies $30,000,000 Initial exploration period was supposed to end in July 2018 but has been extended to 2021. This extension came barely six months into the. Seismic data processing is ongoing. The contractor has acquired 3D data for processing. The extension granted in 2016 will expire in 2021. However the 9 months granted by Petroleum commission for the company to submit appraisal programme for inherited discoveries is still in default. No drilling has been made to date. N/A
14 Ultra-Deepwater East Keta Block (2,239sqkm) GNPC- GOSCO, Heritage E&P, , EXPLORCO, and Blue Star Effective Date: 18/Jul/14 Initial Exploration Period (2.5 years + 2 years): July 18, 2014 – January 17, 2019 (a) Reprocess existing 2D and acquire 1500sqkm of 3D seismic $15,000,000 Initiated efforts to reprocess existing data and license 2D data on the area. Initial exploration period has been extended by 2 more years. The extended period has also expired and the contractor has not met the minimum work obligations. GNPC’s subsidiary is the operator of the block but that is not an excuse to shield majority interest holders from nonperformance N/A