Press Release - Ghana Parliament Ratifies East Cape Three Points Block Petroleum Agreement
Accra, December 6, 2013 - The Parliament of the Republic of Ghana has ratified the Petroleum Agreement among the Government of the Republic of Ghana, Ghana National Petroleum Corporation (GNPC), Cola Natural Resources Ghana Ltd (CNR), and Medea Development Ltd (MEDEA) to explore and operate the East Cape Three Points Block (ECTP), offshore Ghana.
The ratification occurred on December 4, 2013, following the approval of the Agreement by the Cabinet of the Government of Ghana and a review by the Parliamentary Select Committee on Mines, Energy and Petroleum.
The ratification grants the parties involved the exclusive right and authority to carry out all petroleum exploration, development and production activities in the East Cape Three Points Block.
Medea Development Ltd holds 36% of the Contractor interest and will be the operator of the block; CNR holds 54%; and GNPC holds the remaining 10% as carried interest, with an optional 17.5% additional paying interest.
The ECTP Block has an area of 1,560 km2 and is located in the Cape Three Points sub-basin which forms the eastern extension of greater Tano basin. Water depth ranges between 50m and about 200m. The Block is located north-east of the Lukoil operated Deepwater Cape Three Points Block, which hosts the DZATA gas and condensate discoveries.
The terms of this Petroleum Agreement satisfies the objectives of the State, with improved fiscal terms for the Government and GNPC over previous agreements in similar water depths and in the vicinity of this block.
'We believe that successful exploration activities in the area would stimulate more Exploration and Production activities offshore Ghana, increase the national oil and gas reserves and, hence, the revenues to be derived by the State.Production activities would also create employment and the setting up of ancillary businesses by Ghanaians to service operations. We shall continue to be a dependable partner in harnessing Ghana’s petroleum resources' said GNPC Chief Executive, Alex Mould.
MEDEA Development CEO Giuseppe Ciccarelli said: 'We are extremely pleased that the Parliament of Ghana has ratified the Petroleum Agreement signed with the Ghana government, GNPC and CNR. MEDEA, as operator, is committed to conduct an extensive 3D seismic campaign (1200 sq.km) on the awarded ECTP Block and one well by the end of third year of exploration. This award sets a landmark for our company and confirms MEDEA’s strong commitment to invest in oil blocks opportunities and in the growth of its exploration activities in Africa.'
Azad Cola, President of CNR, said 'We identified this block as a prospective area some time ago, and embarked on discussions with GNPC to explore it. The Petroleum Agreement reflects our commitment to do so in a cooperative way with GNPC, so that Ghana will benefit from these activities.'
For further information, contact:
Ag. Head, Corporate Affairs, GNPC
Tel: +233-303-206020/303-204654 / 0244258749
Medea Development S.A.
Via Comorgio, 2
Tel. +41 919210142
Fax. +41 919210145