Shell and Chevron have signed a non-binding agreement with the Ghana National Petroleum Corporation covering the potential acquisition of production rights over the South Deepwater Tano Cape Three Points oil and gas block.
Signed on September 1, the memorandum of understanding sets a framework for further negotiations and does not amount to a final award of production rights. Shell told Reuters the arrangement remains subject to the relevant approvals, while Chevron confirmed the MoU and said it continues to review global exploration opportunities.
The block sits in Ghana's Western, or Tano-Cape Three Points, Basin, which also holds the producing Jubilee, TEN and Sankofa-Gye Nyame developments.
Ghana is reviewing the legal and fiscal framework governing its upstream petroleum sector. Energy and Green Transition Minister John Jinapor said proposed reforms include cutting GNPC's initial interest in upstream projects from 15% to 10%, simplifying the tax regime and introducing royalty treatment that varies with water depth.
The country is seeking additional upstream investment after crude oil production fell from a peak of 71.44 million barrels in 2019 to 48.25 million barrels in 2024, according to the U.S. International Trade Administration.
Existing producing fields are also drawing spending. Licence extensions covering Jubilee and TEN have been ratified through 2040, providing for up to US$2 billion in incremental investment and as many as 20 additional wells at Jubilee.
Other international operators have been moving into Ghana's offshore sector in recent months. Petrobras entered negotiations in August for exploration contracts covering four blocks in the Keta Basin, after receiving approval from Ghana's Ministry of Energy and Green Transition.