GNPC’s move to acquire a stake in AGM block may be wise – IES fellow

A fellow of the Institute of Energy Security, Emmanuel Kpogo, has waded into the ongoing conversation with regards to the Ghana National Petroleum Corporation’s decision to acquire stakes in Ghana’s offshore fields.

The comments come after government has initiated the process to acquire ownership in two oil blocks; a 37 percent share in the Deep Water Tano Cape Three Points (DWT/CTP)

Read full article.operated by Aker Energy and a 70 percent stake in the South Deep Water Tano (SDWT) field operated by AGM Petroleum through Ghana National Petroleum Corporation (GNPC).

Despite calls by some Civil Society Organisations questioning GNPC's motive for the sale, the IES fellow indicates that a careful examination of the AGM Block shows that GNPC’s decision to include the oil block as part of its acquisition may be a wise one.

In a write-up sighted by GhanaWeb, Emmanuel Kpogo explained, “to start with, the AGM block is by far the biggest in Ghana at 3,500 square kilometers (sq.km) in size. It is said to have a prospective resource potential of more than 4 billion barrels recoverable.

“It is a known fact that AGM has already drilled two wells in the block. The Nyankom discovery was hugely successful. The second discovery KyenKyen was dry, but that certainly may help AGM become more educated on the area potential; something that could benefit GNPC in the long run.”

“From the works done so far, we now know that the Nyankom discovery has volumes of 127 million barrels of proven oil reserves. The Nyankom greater area according to records, may have additional prospects (fields) between 400 – 650 million barrels of oil. If the 650 million barrels are proven, the Nyankom greater area will contain more recoverable barrels than what remains in Jubilee, Tweneboah-Enyera-Ntomme (TEN) and Sankofa Gye Nyame (SGN) combined, but pending that all prospects indicated are proven through exploration and appraisal.”

“This is why you will not be wrong if you choose to describe the AGM block as a true Jewel. It is a well-known rumour that ExxonMobil among others have wanted to farm into this block,” he pointed.

Read the full write up below: