Development of the Pecan field

The development of the Pecan field has continued to be fraught with delay. However, as the new government promises to arrest declining levels of production, we expect that measures will be implemented to finally realise the development of the Pecan field this year after a final investment decision is reached. Peak production of the Pecan field is expected to reach up to 80,000 barrels of oil per day, which will be crucial in breathing life into Ghana’s upstream oil and gas industry.

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Unitisation of the Sankofa Field and Afina-1X Well?

Following Springfield and its WCTP Block 2 partners' announcement of the successful completion of the appraisal of the Afina discovery, negotiations and consultations are expected to commence regarding its development and a determination made for the unitisation of the Afina field and the Sankofa field operated by Eni Ghana Exploration and Production Limited. The commencement of production of the Afina discovery will boost Ghana’s oil production and make Springfield the first independent African entity to produce oil in Ghana.

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Progression of tax disputes between Tullow and Ghana

As disclosed by Tullow in its 2024 Half Year Results, the hearings for its two outstanding tax disputes with the government are scheduled to take place this year. The hearing for the dispute relating to loan interest disallowance is set to be held in July 2025, while the hearing of the insurance proceeds dispute will be held in November 2025. Both disputes are being heard by the ICC. On the back of its successful arbitration against the Ghana government over a branch profit tax assessment, we understand that Tullow is engaging the government over the outstanding tax disputes. Perhaps, a settlement may finally be reached by the parties.

 

Decarbonisation

With the re-christening of its energy ministry as the Ministry of Energy and Green Transition, Ghana is expected to progress significantly with its plan to achieve net zero emissions by 2060. This follows the launch of the Ghana Energy Transition and Investment Plan to attract global investment and climate financing for its energy and transport sectors, and the expressed intention of entities such as the Belgian Renewable Energy Sector Company, We Green Energy, and the Japan Bank for International Cooperation, to develop and finance green projects in Ghana. Tullow Ghana and the Forestry Commission are expected to begin the full implementation of the joint nature-based carbon offset project launched in 2024 to among other things, support Ghana’s Reduced Emissions from Deforestation and Forest Degradation (REDD+) Strategy and generate up to one million tonnes of certified carbon offsets annually. The Jospong Group of Companies and EKI Energy Services Ltd are also expected to collaborate on a USD 1 billion in carbon credit financing.  

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Tussle over the ownership of the Bogoso/Prestea mine to continue

For 2023 and the greater part of 2024, Blue Gold, as the then ultimate owner of the Bogoso/Prestea mine, was engaged in a restructuring exercise aimed at revamping the mine. However, the process was terminated when the Minister of Lands and Natural Resources revoked the mining lease for alleged breaches of the mining lease. Consequently, Blue Gold has sought to reach an amicable resolution with the government to restore the mining lease. This, however, has increasingly appeared unlikely following reports that the mine has been assigned to a new operator. Blue Gold has since signalled its intention to pursue legal action against the government, which could lead to international arbitration in 2025, if not resolved amicably.

 

MIIF’s acquisition of a stake in Zijin’s Akyem gold mine

The Minerals Income and Investment Fund (Ghana’s minerals sovereign fund), is expected to acquire a stake in the operation of the Zijin Mining Group’s Akyem gold mine following disclosure that it is in discussions with Newmont and Zijin Mining Group which acquired the mine from Newmont. The additional interest is intended to secure Ghana’s interest and safeguard Ghana’s economic and resource sovereignty.

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Deployment of Advance Passenger Information (API)/Passenger Name Record (PNR) System at airports

Late last year, the Ghana Civil Aviation Authority (GCAA) signed an agreement with Rock Africa and Ascent Solutions for the deployment of an API/PNR system at Ghana’s international airports. The deployment which is expected to be completed this year will enable the GCAA to handle real-time data processing and sharing with relevant stakeholders, improving the country’s ability to monitor, secure and manage passenger information. The project represents a significant step forward in enhancing the security and operational capabilities of Ghana’s aviation infrastructure.

 

Continuation of infrastructural projects

Pursuant to the new government’s “Big Push” infrastructure agenda, we expect the new government to continue infrastructural projects commenced by the previous government as indicated in the Mini Budget.

 

Following Parliament’s approval on 17 May 2024 of a $150M facility to finance the Greater Accra Resilient Integrated Project (GARID) project which aims to address flooding in the Greater Accra Region of Ghana, the GARID project is expected to continue. We expect the projects launched under the previous government in respect of which funding has been obtained to progress. These include the Tema free zone water project to enhance and expand water and sewage facilities at the Tema Export Processing Zone, the coastline restoration project to address issues such as coastal erosion and flooding control works, and the 670 kilometres of feeder roads project in the Upper West Region to improve access to farmers and healthcare facilities in the local communities.