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Ghana Contract Monitor

6. Shallow Water Cape Three Points Block (1500sqkm)

Contract Parties

Sahara Energy (Operator), GNPC, Sapholda E&P

Effective Date/Initial Exploration Period

Effective Date: July 17, 2014

Initial Exploration Period(3 years): July 17, 2014 – July 16, 2017

Minimum Exploration Program (Initial Phase)

  • Conduct geological and geophysical studies

  • Drill one (1) Exploration Well

Minimum Expenditure


Observations as of 2022

The agreement was terminated for non-performance; Sahara Energy paid US$71,934.93 of outstanding rentals, and US$75,000.00 remains unpaid.

The contractor did not fulfill the minimum work obligation in the first phase, which expired in 2017. The Ministry of Energy has not provided update on the status of the agreement. However, the map of the western basin still shows that the contract area is owned by Sahara.

The Contractor did not undertake any activity in 2019.

The contractors on the block are required to conduct geological and geophysical studies drill one (1) exploration well. The contractors have failed to deliver on their minimum work and financial obligations since the expiration of their initial exploration period. While there is no evidence of the contractors being granted an extension after 2017, the petroleum register still lists them as the holders of the Shallow Water Cape Three Points.

The 2021 PIAC Semi-Annual Report reveals that the Petroleum Commission has commenced processes for the termination of this agreement on the grounds of non-performance.

The agreement for this block was terminated on 27th April 2021 for non-performance. Concerning payment obligations on the Shallow Water Cape Three Points Block, Sahara Energy paid US$71,934.93 out of the US$146,934.93 in outstanding Surface Rentals in the first quarter of 2022, leaving an unpaid balance of US$75,000.00.

The block is part of the six selected blocks the Ministry of Energy marketed to investors as part of the 2022 Ghana Oil and Gas Roadshows in Houston, USA and London, Aberdeen in the UK.