Russia Monitor is a review of the most important events related to Russian internal and external security, as well as its foreign policies.
Date: 27 September 2021
Lukoil Voices Concern Over Ghana Oil Assets
Russian energy giant Lukoil said Ghana’s plans to acquire a bigger stake in one of its key oil projects could pose a risk to its execution. The Russian giant is concerned over deteriorating project conditions as a Ghana state corporation acquired stakes from a private Norway-based energy firm.
State-controlled Ghana National Petroleum Corporation last month got parliamentary approval to negotiate increasing its share of the Deepwater Tano/Cape Three Points (DWT/CTP) block and the South Deepwater Tano field. But Russia’s Lukoil, which owns 38 percent of the DWT/CTP asset, fears a change of ownership may affect project financing and schedules. Ghana National Petroleum Corporation is currently holding 10 percent of DWT/CTP and about a third of South Deepwater Tano. Yet the government-run agency seeks to boost the country’s revenues after a shortfall in oil receipts amid the pandemic deepened last year’s budget deficit. Ghana’s hydrocarbon resources will also increasingly have to compete for investment as the use of cleaner energy grows. The government estimates it will need more than $1 billion to acquire a 50 percent stake in the DWT/CTP asset, operated by Norway’s Aker Energy AS, and a 70 percent share of the South Deepwater Tano field run by AGM Petroleum Ghana Ltd. Since 2015, Lukoil has been an investor in Deepwater Tano/Cape Three Points through its subsidiary Lukoil Overseas Ghana Tano Ltd. The deposit is offshore of Ghana, stretching for just more than 2,000 square kilometers. It is located in Ghana’s western waters in the Gulf of Guinea, some 80 kilometers off Cameroon. Five oil fields and two gas fields were discovered there. The Ghana project is just one of many Lukoil’s investments in Africa. Russia’s biggest private oil company is active also in Nigeria, the Republic of Congo, and Egypt.
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