Oil production in Ghana is in jeopardy due to the delayed development of the Pecan Oilfield, according to research by Fitch Solutions.
The oilfield has been a source of conflict since the Russian invasion of Ukraine, leading Aker Energy, the operator of the field, to hesitate in committing to a Final Investment Decision.
Lukoil, a Russian company that holds a 38% stake in the field, is at risk of sanctions, which could limit Aker’s ability to work with them and interfere with operations at the Pecan field.
The CEO of Aker, Øyvind Eriksen, has stated that development plans will not be submitted to the government until Lukoil’s participation has been resolved.
The Pecan field is part of the Deepwater Tano Cape Three Points license block and has an estimated 334 million in reserves. Aker Energy holds a 50% stake in the field, with the Ghana National Petroleum Corporation (GNPC) holding 10% and Fueltrade holding 2%.
Despite the various challenges faced by the field in recent years, including concerns over capital costs and GNPC’s stake, the key barrier since February 2022 has been Lukoil’s involvement, according to Fitch Solutions.
Aker has recommended that Lukoil divests its share in order to overcome the current obstacle.
The company is continuing its dialogue with Lukoil and authorities to find a solution, but has delayed its development plans until the situation is resolved.