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Aker Energy says it remains

committed to Pecan project

GHANA NORWAY’S Aker Energy said last week that it Now, though, it is mulling proposals for a phased
was determined to find a way to proceed in mul- approach that would see it redeploying the FPSO
tiple stages with the development of Pecan, an to a site 115 km from shore and focusing first on
oilfield within the Deepwater Tano/Cape Three the southern section of Pecan.
Points (DWT/CTP) block offshore Ghana. According to Aker Energy’s statement, this
In a statement, the company said it remained switch to a phased approach will significantly
committed to launching a “phased development” reduce the capital expenditure budget for the
programme at Pecan, despite its decision in project.
March to delay a final investment decision (FID) It will also bring break-even costs down to a
on the project. It did not say whether it had set lower level and increase the likelihood that Pecan
a new deadline for the FID but reported that it will be profitable, the company said.
was carrying out conceptual studies in a bid to It added that it had not yet decided which
confirm the feasibility of its plans for Pecan. FPSO it might use for work at Pecan. At pres-
Håvard Garseth, the CEO of Aker Energy, ent, the company is assessing several candidate
also pointed out that recent events had not led vessels and will make a final decision “based on
his company to abandon the Pecan project. technical capabilities and cost,” the statement
“In a time when most other E&P companies said.
are putting development projects on the shelf Kadijah Amoah, Aker Energy’s country
due to the [coronavirus] COVID-19 situation director for Ghana, commented: “Along with our
and historic low oil prices, Aker Energy and partners, we are optimistic that we will establish
our partners … [are] working closely with the a workable concept so that we can finally see
government of Ghana [and] actively pursuing first oil in the fourth offshore field in Ghana. We
a development concept where we can com- remain committed to Ghana.” Pecan is believed
mence phase one of a phased development of to contain 450-550mn barrels of oil equivalent
the Pecan field,” Garseth said. “Although we (boe) in recoverable reserves. Aker Energy has
have an altered timeline, we are on our way to said it will develop Pecan on a stand-alone basis,
finding a development concept with a break- without focusing on hydrocarbon reserves in
even price that is sustainable and resilient also other sections of the DWP/CTP block.
in a low oil price environment.” Aker Energy Equity in the project is split between Aker
had previously drafted development plans that Energy, the operator, with 50%; Lukoil (Russia),
called for anchoring a floating production, stor- with 38%; state-owned Ghana National Petro-
age and off-loading (FPSO) vessel at a central leum Corp. (GNPC), with 10%, and Fueltrade
location within Pecan and using tie-ins to link (Ghana), with 2%.™
the FPSO to all production sites within the field.

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