DEEPWATER TANO/CAPE THREE POINTS
OPERATOR: Hess Ghana Exploration Limited - 40% interest in block
OTHER CONTRACTING PARTIES:
Lukoil Overseas Ghana Limited - 38% interest in block
FT Exploration and Production Limited – 2% interest in block
Ghana National Petroleum Corporation (GNPC)- 10% interest in block
GNPC Exploration and Production Company Limited (GNPC EXPLORCO) – 10%
Original Contract Area Size: 2,100 sq.km
Effective Date: July 19, 2006
Exploration Period: 7years
Current Phase of Operations: Pre-Development
Extension(s): Ten (10) months post ITLOS ruling to submit Plan of Development (PoD).
Status of Operations
Contractor has completed appraisal and declared commerciality for Pecan, Almond and Beech oil discoveries. A conceptual development plan has been agreed on for reserves. The Contractor is currently undertaking FEED for subsea and FPSO development. The Contractor is yet to submit a formal PoD. The Contractor has raised certain issues in respect of the appraisal of the gas and gas condensate discoveries which are Hickory North and Paradise.
About 69% of the Contract Area was affected by the ITLOS ruling. The then Minister for Petroleum in June 2016 granted Contractor ten (10) months post the maritime boundary ruling to submit a Plan of Development for the commercial fields.
The Contractor has undertaken the required work on the oil discoveries and is at the advanced stage of pre-development. The operator is expected the submit a Plan of Development within ten (10) months after the ITLOS ruling.
Royalty: Four percent (4%) of the Gross Production of Crude Oil shall be delivered to the State as Royalty.
Royalty to be delivered to the State on Natural Gas shall be at the rate of three percent (3%) of the annual Gross Production of Natural Gas.
Income Tax: In accordance with the provisions of the Income Tax law, petroleum income tax shall be levied at thirty five percent (35%).
Withholding Tax: Withholding tax at a rate of five (5%) from the agreement amount due to any Subcontractor if and when required by Section 27(1) of the Petroleum Income Tax Law.
Additional Oil Entitlement: Refer to the Petroleum Agreement.