AGM Petroleum Ghana Limited (AGM) has made the decision to exit the South Deep Water Tano (SDWT) block following a review of all available options. The move comes after the Energy Ministry issued a final deadline to Aker Energy, the field operator of the Pecan development project, to submit its Plan of Development (PoD). AGM’s decision to relinquish the block is in line with the country’s petroleum regime, which stipulates that exploration blocks must be either drilled or dropped at specific times during the exploration period.

The SDWT block, located in ultra-deep waters, requires significant investment to proceed with exploration, and AGM has fulfilled all its obligations under the petroleum agreement by drilling two ultra-deepwater wells, including the Nyankom discovery. The company has also made significant contributions to Ghana’s petroleum industry and carried out CSR investments that have benefited the Ghanaian authorities and other industry players.

While AGM’s decision has no implications for Aker Energy’s plans in Ghana, the field operator may lose its interest in the Pecan field if it fails to submit its PoD by 15 April 2023. The PoD is a critical document that outlines the development plan for the offshore Pecan field, and failure to submit it could have significant implications for the field’s future.

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