INVITATION FOR DIRECT NEGOTIATIONS FOR PETROLEUM EXPLORATION AND PRODUCITON LICENSE, OFFSHORE

REPUBLIC OF GHANA

MINISTRY OF ENERGY

1^STOIL AND GAS LICENSING ROUND

INTRODUCTION

Pursuant to Section (10) Subsection (9) of the Petroleum (Exploration and Production) Act 2016, Act 919 and in accordance with the principles of good governance, transparency and accountability, the Minister of Energy, by this public notice, hereby invites Oil and Gas companies, with relevant experience in ultra-deep water exploration and production, with emerging subsea technology, for direct negotiations without public tender in respect of Blocks GH_WB_05 and GH_WB_06, offshore the Republic of Ghana.

Block GH_WB_05 is covered with limited 2D and 3D seismic data and has water depth ranging from 1800 to 4500 metres. The discovery of Dzata- 1 well in the Cenomanian and Albian established a working petroleum system within the area and there is likelihood that another petroleum systems can be established in deeper horizons.

Block GH_WB-06 lies in ultra-deep water with depth ranging from 3,500 to 4,500 metres. It has limited 2D seismic data coverage and no exploration well has ever been drilled in this area. The blocks are found in the area relinquished by Vanco and LukOil.

These blocks will be awarded to companies that have a track record of delivering projects on time and within budget.

POLICY OBJECTIVE

The Licensing Round is to enable the Government of Ghana to accelerate upstream activities so as to increase reserves and production of petroleum resources.

The objective of the 1^stOil and Gas License Round, pursuant to Regulation 16 (2a) of the Petroleum (Exploration and Production) (General) Regulations, L.I 2359, is for the Government of Ghana to have significant participation interest as defined in the evaluation criteria.

WHY DIRECT NEGOTIATIIONS?

1. The water depths of blocks GH_WB_05 and GH_WB_06 severely test the limits of modern technology and would take research and development to optimally develop and exploit discovered resources.
2. The setting in ultra-deep water results in high drilling cost, therefore, increased emphasis on full regional technical understanding and experience in exploration in similar geological plays prior to drilling is essential.
3. Critical success factors in any petroleum basin such as Ghana’s is the attraction and retention of International Oil Companies (IOCs) with the relevant technical expertise and sound financial capability with access to both capital and project finance.

The aforementioned reasons have necessitated the Ministry to target companies with such expertise for award of exploration licences for blocks GH_WB_05 and GH_WB_06 through direct negotiations.

MODE OF APPLICATION

Interested companies, pursuant to Regulation 19(8), shall apply using form 2 as contained in the first schedule of the Petroleum (Exploration and Production) (General) Regulations, 2018.