Norwegian oil company Aker Energy has reaffirmed its commitment to finding a solution that will enable a phased development of the offshore Pecan field in Ghana to commence
Håvard Garseth, CEO of Aker Energy, said, “In a time when most other E&P companies are putting development projects on the shelf due to the COVID-19 situation and historic low oil prices, Aker Energy and our partners, Lukoil, Fueltrade and GNPC, working closely with the government of Ghana, are actively pursuing a development concept where we can commence phase one of a phased development of the Pecan field.
“Although we have an altered timeline, we are on our way to finding a development concept with a breakeven price that is sustainable and resilient also in a low oil price environment.”
Aker Energy announced in March that a final investment decision (FID) had been put on hold for the Pecan field development project, postponing the project. Although no new date has been set for the FID, the company is working actively to confirm the feasibility of a phased Pecan field development by executing conceptual studies.
The phased development of the Pecan field and the use of a redeployed FPSO vessel will reduce the CAPEX substantially and, hence, reduce the breakeven cost.
It will also increase the possibility of reaching a commercially feasible project which will enable investment decision. At present, Aker Energy and its partners are assessing several FPSO redeployment candidates, and the final selection will be based on technical capabilities and costs.
While the original concept of field development was based on a centralised FPSO supporting the development of the entire Pecan field as well as the tie-in of all other area resources, the focus shifted towards a phased development approach.
This approach will allow Aker Energy to start with one FPSO for Pecan in the south and expand after a couple of years to a second FPSO in the north with tie-ins of additional resources discovered. The first FPSO will be deployed in depths ranging from 2,400 to 2,700 m at approximately 115 km offshore Ghana via a subsea production system installed in ultra-deep waters.
Mohammed Amin Adam, deputy minister of energy in Ghana, said, “Getting projects like the Pecan field in operation is key toward our mission of making Ghana a major producer in West Africa and Africa as a whole.”
Kadijah Amoah, country director in Ghana, said, “Along with our partners, we are optimistic that we will establish a workable concept so that we can finally see first oil in the fourth offshore field in Ghana. We remain committed to Ghana.”
