15. East Keta Block (2,239sqkm)
Contract Parties
OPCO (Operator), Heritage E&P, Blue Star E&P, GNPC EXPLORCO.
Effective Date/Initial Exploration Period
Effective Date: February 05, 2015
Initial Exploration Period (2.5 years + 2 years): February 05, 2015 – August 04, 2019
Minimum Exploration Program (Initial Phase)
-
Reprocess existing 2D and acquire 1500sqkm of 3D seismic
Minimum Expenditure
$15,000,000
The extended period has also expired and the contractor has not met the minimum work obligations. GNPC’s subsidiary is the operator of the block but that is not an excuse to shield majority interest holders from nonperformance.
The Contractor engaged CGG in 2016 to acquire 3D seismic data. The seismic vessel was intercepted by Togolese navy and frustrated the acquisition work. The matter still remains unresolved between Ghana and Togo.
The contractors on this block are required to reprocess existing 2D seismic data and acquire 1500sqkm 3D seismic data. Even after a 2-year extension to the initial exploration in 2017, the contractors have still failed to deliver on their minimum work obligations. However, the contractors have not been sanctioned for their non-performance. Coincidentally, the operator is a subsidiary of GNPC.
The contractors have failed to deliver on their work obligations without any sanctions. The only activity worthy of note is the change of name of GOSCO to OSWT & EK Operating Company Ghana Limited (OPCO) as a special purpose vehicle set up by the contractors on the East Keta (EK) block and the South West Tano (SWT) block. It is important to highlight that both blocks share the same contractors.
With respect to payment obligations on the East Keta block, OPCO has an outstanding surface rentals payment of US$537,794.80
OPCO carried out well planning and drilling related procurement of goods and services in 2021 and made preparation towards the drilling of its obligatory exploration well, for Q4 2024 after delays in previous rescheduling; i.e. from Q4 2022 to Q2 2023, and then to Q4 2023. Additionally, OPCO is reported to be in discussions with Tullow for a potential rig-sharing opportunity.
OPCO has an outstanding surface rental balance of US$537,795 for the East Keta Block