Ghana's President Nana Akufo-Addo in February said he expected Norwegian oil firm Aker Energy to make a final investment decision on the Pecan offshore development "within a month or two." The wait is now set to be prolonged "indefinitely."
Namely, in the space of one month or so, the world has turned on its head with the global coronavirus outbreak, and the overflow of cheap oil from Saudi Arabia, leading to a historic crash in oil prices.
This, in turn, has now led the Norwegian oil firm to delay its plans to sanction the Pecan offshore oil project in Ghana.
Aker Energy's parent company Aker ASA, said in its annual report on Wednesday that given the unprecedented collapse in oil prices in the first quarter of 2020, Aker Energy "has decided to postpone the Pecan project indefinitely."
"At the top of Aker's ownership agenda is to find potential for improvement, including for the technical solution, as well as supporting Aker Energy's strategy of exploring opportunities for transactions. Aker Energy has a constructive dialogue with the authorities in Ghana, and have a shared understanding of the challenges being faced," Aker Energy said.
Drilling operations at Pecan confirmed contingent resources of 450–550 million barrels of oil equivalents in the Deepwater Tano Cape Three Points (DWT/CTP) block.
Worth reminding, Aker Energy in February even signed a letter of intent with Malaysian FPSO provider for the delivery of an FPSO for the Pecan oil field.
Subject to a firm contract signing, Yinson was to secure the deal for a bare-boat charter and an operations and maintenance contract for the FPSO for a ten-year period.
According to Aker Energy's plan, the field development would comprise of up to 26 subsea wells, including 14 advanced, horizontal oil producers and 12 injectors with alternating water and gas injection (WAG), and the use of multiphase pumps as artificial lift, to maximize oil production.