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AKER ENERGY: AKER ENERGY BECOMES OPERATOR OF THE DWT/CTP BLOCK IN GHANA AFTER ACQUIRING HESS GHANA

05.06 2018 13:03

(Oslo, 1 June 2018) Aker Energy Ghana AS, a subsidiary of Aker Energy AS ("Aker Energy") has completed the acquisition of Hess Ghana, the operator of the Deepwater Tano Cape Three Points block ("DWT/CTP") with a 50 percent participating interest in the license. Aker Energy will work closely with licence partners and authorities to submit a Plan of Development ("PoD") in second half of 2018 with anticipated first oil in fourth quarter of 2021.

"We are very pleased to announce the completion of our acquisition of Hess Ghana, marking our formal entrance as an E&P company in Ghana. Our organisation, counting some 90 people at the moment, has already worked intensely for months to progress the PoD for the Pecan field together with Ghana National Petroleum Corporation and the other licence partners. We will now step up our activity by recruiting experienced people both in Oslo and Accra that will play important roles in helping us develop into the operator of choice in Ghana," says Jan Arve Haugan, CEO of Aker Energy.

Aker Energy was founded in February 2018 as a 50-50 joint venture between Aker ASA and TRG AS. The transaction, as announced on 19 February 2018, has a total cash consideration of USD 100 million, where USD 25 million was paid upon closing of the transaction and a further USD 75 million will be payable upon approval of the PoD for the DWT/CTP block. Completion of the transaction is an important first step for the company, which has a long-term commitment to create value for its owners, partners, society and local communities from its operations in Ghana.

The DWT/CTP block

Aker Energy is now the operator of the DWT/CTP block with a 50 percent interest through Hess Ghana (which will change its name to Aker Energy Ghana Limited) and will work closely with the other partners in Lukoil (38%), Fuel Trade (2%) and Ghana National Petroleum Corporation (10%) towards a PoD submission in second half of 2018 with anticipated first oil in 2021.

"The development concept will build on experience derived from operations on the Norwegian Continental Shelf. At the same time, the Pecan discovery is located in ultra-deep waters offshore of Ghana, challenging us to explore new and innovative ideas to identify the best development solution. Our team is built on decades of oil and gas know-how and expertise from projects and operations all over the world, and we are privileged to access expertise from all the Aker related companies and from Hess in this start-up phase," says Haugan.

The DWT/CTP block is centrally located within the Tano Basin, a prolific petroleum region offshore Ghana, with gross discovered contingent resources estimated to be 550 million barrels of oil equivalent (2C) and a remaining prospective volume upside of around 400 million barrels. Aker Energy is planning to develop the Pecan field in the DWT/CTP block with a purpose-built FPSO connected to a subsea production system at 2,400 meters below sea level offshore Ghana. The company will further analyse the targets throughout 2018 and is currently planning an appraisal drilling campaign.

Operating model

Aker Energy will base its operating model on that of Aker BP, a company that on record time has become one of Europe's leading independent listed oil companies and Aker ASA's largest portfolio company, building its operations on an integrated, flexible and efficient structure for decision making. The integration is based on strong alliances with suppliers, developing cost efficient solutions. Furthermore, Aker Energy intends to be at the forefront of the digitalisation of safe and efficient oil and gas operations.

"We envisage operating several field developments in Ghana in the future, and we aim to provide numerous opportunities for local staff and services on the offshore installations, base operations for support of offshore operations and local fabrication. In Aker Energy, we are committed to transfer our experience from the NCS to contribute to the development of the Ghanaian oil and gas industry by cooperating with local suppliers," Haugan concludes.

ENDS

For further information, please contact:

Håkon Høgetveit, Head of Communications at Aker Energy AS
www.akerenergy.com .