Ghana Cuts State Share in Oil Projects to Lure Shell and Chevron
Ghana's government has signed a non-binding memorandum of understanding (MoU) with Shell and Chevron for the South Deepwater Tano Cape Three Points block.
The MoU, which was signed on September 1 during Africa Oil Week in Accra, covers the block where Shell and Chevron will negotiate final licence terms subject to necessary approvals.
Ghana is moving to reduce the free carried interest held by the state oil company, Ghana National Petroleum Corporation (GNPC), from 15% to 10% in new upstream petroleum projects. This means contractors would retain a larger share of future output.
The government also proposes increasing the duration of petroleum agreements from 25 years to 30 years and deferring signature bonus payments until a discovery is declared commercial.