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Business News of Monday, 31 May 2021

Source: www.ghanaweb.com

ExxonMobil exits Ghana’s oil fields, relinquishes 100 percent of oil exploration rights

Deepwater Cape Three Point Block in the Western Region Deepwater Cape Three Point Block in the Western Region

• ExxonMobil has pulled out of exploration activities in Ghana

• The company explained it was unwilling to enter an extension of its contract signed back in 2018

• ExxonMobil prior to its existing Ghana controlled 80% of the Deepwater Cape Three Point Block in the Western Region


ExxonMobil, a US-based oil and gas firm has exited Ghana’s oil fields and subsequently relinquished 100 percent of its oil exploration rights in the Deepwater Cape Three Point Block in the Western Region.

A letter issued to Ghana’s Ministry of Energy, Dr. Matthew Opoku Prempeh and copied to the Petroleum Commission and Ghana National Petroleum Corporation, (GNPC) explained, the company was unwilling to enter an extension of its initial contract originally signed in 2018.

“EMEPGL hereby notifies the Republic that it has determined not to enter into the First Extension Period, and hereby voluntarily surrenders and relinquishes one hundred percent (100%) of its rights in and to the DWCTP Contract Area,” portions of the letter read.

“EMEPGL also confirms that it hereby resigns as Operator for the DWCTP Block and that it has fully performed the relevant Minimum Work Obligation under the Petroleum Agreement. The above is without prejudice to the EMEPGL’s accrued rights,” it added.

ExxonMobil prior to formally withdrawing its activities in Ghana controlled 80 percent of the Deepwater Cape Three Point Block with the Ghana National Petroleum Corporation holding 15 percent and Goil Offshore Ghana Ltd having the remaining 5 percent.

Though the oil and gas firm did not provide further details of its decision, it thanked the Government of Ghana “for the good and constructive relationship we have enjoyed over the years”

The Deepwater Cape Three Points block, is located 57 miles (92 kilometres) off the coast of Ghana. It measures approximately 366,000 acres (1,482 square kilometres) in water depths ranging from 5,085 feet to 9,350 feet (1,550 meters to 2,850 meters).

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