AGM Petroleum Ghana Limited (AGM) and its owners have decided to relinquish the South Deep Water Tano (SDWT) block after carefully considering all options.
AGM has carried out substantial activity in Ghana and contributed through drilling two ultra deepwater wells including the Nyankom discovery, and matured the subsurface understanding to the benefit of the Ghanaian authorities and other industry players.
Further, AGM has carried out CSR investments and fullfilled all of the obligations under the petroleum agreement.
The SDWT block is situated in ultra deep waters with substantial investments required to proceed.
A relinquishment conclusion is a normal conclusion for exploration blocks like SDWT, and the petroleum regime in Ghana presumes that the Operator has to decide to drill or drop at specific times during the exploration period.
AGM is an independent company and the decision has no implication for Aker Energy’s plans in Ghana.
AGM Petroleum in 2019 announced that it will start oil drilling activities at the South Deepwater Tano (SDWT) block following the ratification of the AGM Petroleum Agreement by parliament.
The oil company said at the time that it can now begin exploring for oil in the ultra-deepwater block, over 3.5 kilometres below sea levels.
In a statement on Monday, 6 May 2019, AGM added that the petroleum agreement ratified by parliament on 3 May 2019, gives a fiscal take to Ghana, which is substantially above the international deepwater average of approximately 55 percent.