Energy Ministry terminates oil block negotiations with Eni and three others

The Ministry of Energy has terminated negotiations with four oil companies after more than two years of unfruitful negotiations for petroleum agreements over their respective blocks.

The companies are China National Offshore Oil Corporation (CNOOC), First E&P Development Company/Elandel Energy Ghana, Eni Ghana E&P/Vitol Upstream Tano Ltd and KOKA Energy Ltd.

First E&P Development Company/Elandel Energy Ghana won block GH -WB-02 while Eni Ghana E&P/Vitol Upstream Tano Ltd won block GH -WB-03 during Ghana’s maiden licensing round in May 2019.

Energynewsafrica.com understands that CNOOC was given five oil blocks in the Keta Basin while KOKA Energy Ltd, a company owned by a Ghanaian, was given block GH-WB-04.

Accordingly, the memorandums of understanding the ministry signed with all the companies set out the period within which negotiations would be concluded but the MoUs have expired and there seems to be no indication as yet that the negotiations will be completed any time soon.

As such, the ministry has decided not to extend the terms of the MoUs for all the companies mentioned. This means that the blocks are available for licensing again.

The ministry has, however, informed the affected companies that they can reapply if they are still interested in the blocks.

Over the past few years, the ministry has undertaken roadshows to woo more investors for Ghana’s available oil blocks.

The roadshows appear to have attracted a favourable response, as some oil companies have already expressed an interest.