Shell, Chevron Sign Non-Binding Agreement with Ghana for Offshore Oil and Gas Block

en.Wedoany.com Reported - On September 1, Shell, Chevron, and the Ghana National Petroleum Corporation (GNPC) signed a non-binding memorandum of understanding, intending to hold further negotiations over production rights for the South Deepwater Tano Cape Three Points offshore oil and gas block in Ghana. At this stage, the agreement only establishes a framework for subsequent negotiations; final license terms remain subject to negotiation and relevant approvals, and it cannot be construed that Shell and Chevron have already secured production rights for the block.

Shell stated that the memorandum of understanding provides a framework for the parties to further negotiate final license conditions; Chevron confirmed its participation in the agreement and noted that the company continues to evaluate new exploration opportunities globally. The South Deepwater Tano Cape Three Points block involved in this transaction is located in the Tano—Cape Three Points Basin within Ghana's western maritime area. According to data from Ghana's Ministry of Energy and Green Transition, the basin is one of the country's primary offshore oil and gas exploration and production areas.

At the time of the agreement signing, the Ghanaian government was conducting a comprehensive review of the legal and fiscal regimes governing the upstream oil and gas industry. Reform proposals put forward by Minister of Energy and Green Transition John Abdulai Jinapor include reducing GNPC's initial participating interest in upstream projects—where it bears no upfront financial obligations—from 15% to 10%, while simplifying the tax system and adopting differentiated royalty arrangements based on water depth. These reforms are currently still in the review and policy adjustment phase.

Ghana has continued to push for increased production from upstream oil and gas projects in recent years. In June, the Ghanaian presidency announced that partners in the Jubilee project plan to invest approximately $2 billion to drill up to 20 new wells; partners in the OCTP project plan to invest approximately $1.5 billion for oil and gas field development and exploration, bringing total committed investment to approximately $3.5 billion. GNPC also recently confirmed that following the extension of the Deepwater Tano, West Cape Three Points, and Offshore Cape Three Points petroleum agreements, the corresponding investment scale over the next three years is approximately $3.5 billion.