Chevron and Shell Sign Agreement with Ghana for South Deepwater Tano Cape Three Points Oil Block

Oil majors Chevron and Shell have signed a non-binding agreement to acquire production rights over Ghana's South Deepwater Tano Cape Three Points oil and gas block.

The memorandum of understanding with Ghana National Petroleum Corporation (GNPC) was announced by Energy Minister John Jinapor, who said the country is looking to encourage investment and reverse declining output.

Ghana's crude oil production dropped from a peak of 71.44 million barrels in 2019 to 48.25 million barrels in 2024, according to the US International Trade Administration.

The government is undertaking a comprehensive review of its legal and fiscal framework for upstream petroleum activities, including reducing GNPC's initial interest in upstream projects to 10% from 15%, introducing a simpler tax regime, and adopting differentiated royalty treatment based on water depths.