Aker Energy takeover revives deepwater Pecan project offshore Ghana

Offshore staff

LYSAKER, Norway — Aker Capital and The Resource Group TRG have agreed to sell their shares in Aker Energy to AFC Equity Investment, owned by Africa Finance Corp.

Following the transaction, AFC would become the sole shareholder of Aker Energy, with a 50% stake in the Deepwater Tano Cape Three Points (DWT/CTP) Block offshore Ghana.

This contains the ultradeepwater Pecan oil field and other discoveries with estimated reserves in the range 450 MMboe to 550 MMboe. Previously, AFC invested $200 million in senior secured bonds in the DWT/CTP Block development and its CEO is on the Aker Energy board.

Aker Energy’s existing management team would remain in place and would aim to submit a plan of development (PoD) for Pecan to the Ghanaian authorities later this month.

“In-line with Aker's capital allocation priorities, we have made a strategic decision to sell our stake in the Ghana assets with an earn-out model as a consideration,” said Øyvind Eriksen, president and CEO of Aker ASA. “This way we share the risk and reward of this future development.”

The earn-out model is based on potential future sales and/or production proceeds from the Pecan project.

AFC is a pan-African development finance institution, which has assembled a $10.5-billion portfolio of loans and other investments across six sectors. The Republic of Ghana became an AFC sovereign shareholder in 2018.

Samaila Zubairu, AFC’s president and CEO, said, “The DWT/CTP Project, which aims to develop Ghana's proven resources, has the potential to create jobs, increase government revenues and spur development in the country. Our continuing collaboration with Aker entities for technical support to the development will ensure that the PoD is submitted on time and in line with the framework agreed with the government of Ghana.”

Work on the Pecan project was suspended in 2020 following the outbreak of COVID-19 and the tumbling oil price, and a resumption has been complicated by Russia’s Lukoil being one of the partners. However, the company has reportedly been seeking to sell its 38% interest.

The previous plan for a phased development of the field and use of a redeployed FPSO remains in place. Aker Energy and partners have been assessing various floaters and will take a final decision based on technical capabilities and cost.

04.17.2023