Chevron, Shell sign preliminary agreement with Ghana as country reviews oil and gas sector

A view shows a logo of Shell petrol station in South East London, Britain, February 2, 2023. REUTERS

CAPE TOWN, Sept 3 (Reuters) – Oil majors Shell  and Chevron  have signed a non-binding agreement for the acquisition of production ​rights over Ghana’s South Deepwater Tano Cape Three Points ‌oil and gas block, Ghana’s energy minister said.

• The memorandum of understanding with Ghana National Petroleum Corporation, signed on Tuesday, comes as ​the West African country looks to encourage investment ​and help reverse declining output.
• Shell said the agreement provides ⁠a framework for further negotiations of final license terms, ​and is subject to relevant approvals. Chevron confirmed the ​MoU, saying it is “constantly reviewing new global exploration opportunities”.
• The government is currently undertaking a comprehensive review of its legal and fiscal framework for ​upstream petroleum activities.
• Addressing an energy conference in Accra this ​week, Energy Minister John Jinapor told delegates that among reforms proposed ‌was ⁠reducing GNPC’s initial interest in upstream projects — which does not carry financial obligations — to 10% from 15%.
• Other steps include introducing a simpler tax regime and adopting differentiated royalty treatment ​based on water ​depths.
• Ghana’s crude ⁠oil production dropped from a peak of 71.44 million barrels in 2019 to 48.25 ​million barrels in 2024, according to the U.S. ​International ⁠Trade Administration.
• However, major new investments in the Jubilee and TEN fields announced by Kosmos Energy (KOS.N), opens new taband partners including Tullow Oil (TLW.L), opens new tab ⁠could ​fund the drilling of up to ​20 new wells and bolster oil and gas output.

Reporting by Wendell Roelf ​and Shadia Nasralla; Editing by Anathi Madubela and Jan Harvey