4. South Deepwater Tano (3,482sqkm)
Contract Parties
AGM Petroleum (Operator), GNPC EXPLORCO, GNPC.
Effective Date/Initial Exploration Period
Effective Date: January 24, 2014
Initial Exploration Period (3 years+2 years extension): January 24, 2014 – January 23, 2019
Minimum Exploration Program (Initial Phase)
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Acquire, process and interpret 750sqkm of 3D seismic data
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Drill a minimum of two (2) Exploration Well
Minimum Expenditure
$259,000,000
Observations as of 2022
In April 2022, AGM resumed work after suspension and seeks exploration period extension.
The Contractor drilled two exploration wells, the Nyankom-1X and the Kyenkyen-1X. Nyankom-1X was declared a discovery.
Contractor submitted an appraisal programme for the Nyankom-1X discovery for PC’s approval. PC reviewed the documents and proposed changes for incorporation.
Resubmission of Appraisal Programme, approval and commencement of appraisal activities may be delayed. Contractor has informed the Commission of suspension of of operations to ensure the safety of its personnel due to CODVID-19.
This block is at the pre-development phase after successful discovery in one of its two drilled wells, the Nyankom – 1X in 2019. The block is yet to be appraised. The 2021 PIAC Semi-Annual Report reveals that the contractors prepared an appraisal programme for the Nyankom discovery to be submitted in Q3 of 2021.
In 2021, GNPC proposed and submitted a memo approved by Cabinet to Parliament to acquire additional 70 percent share in this block. This proposal raised significant opposition on the propriety and fiscal implications from CSOs in the sector and other stakeholders in the sector. The advocacy from these actors raised important threats of the proposal to the country’s fiscal situation including issues with the valuations of a non-appraised asset and value-for-money concerns, resulting in a suspension of the plans.
AGM resumed work in April 2022 after a brief suspension in April 2020 and is currently seeking for an extension to the Initial Exploration period.