PETROLEUM REGISTER
SOUTH WEST SALTPOND
OPERATOR: Brittania-U Ghana Limited – 76% Interest in block
OTHER CONTRACTING PARTIES:
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Hills Oil Marketing Company Limited – 4% Interest in block
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Ghana National Petroleum Corporation (GNPC) – 20% interest in block
Contract Area Size: 2050sq.km
Effective Date: July 17, 2014
Exploration Period: 6½ years
Current Phase of Operations: Initial Exploration Period (3 years): [July 17, 2014 – July 16, 2017]
Extension (s): + 2years, 3 months [ July 17, 2017 to October 16, 2019]
Minimum Initial Exploration Programme
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Re-process 800 km of existing 2D seismic data
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Acquire and process 1500 sq.km new 3D seismic data
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Drill one (1) exploratory well
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Minimum Expenditure: US$ 40 million
Status of Operations
Contractor has not commenced activities on the Contract Area. The then Minister for Petroleum in 2016 granted an extension of twenty-seven (27) months to the Initial Exploration Period after a conflict related to the local partner of Brittania-U was resolved.
FISCAL TERMS
Royalty: Ten percent (10%) of the Gross Production of Crude Oil shall be delivered to the State as Royalty.
The Royalty to be delivered to the State on Natural Gas shall be at the rate of six percent (5%) for the Natural Gas for domestic gas projects and seven and a half percent (7.5%) for Natural Gas to be exported.
Income Tax: Petroleum Income tax in accordance with the provisions of the Income Tax Act levied at the rate of thirty-five percent (35%) for the term of this Agreement, subject to applicable law in effect from time to time.
Surface Rental
Additional Oil Entitlement: Refer to the Petroleum Agreement.