Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Aker Energy rethinks Pecan for a lower cost

Top down view of FPSO in blue waters
FPSO John Agyekum Kufuor, offshore Ghana Source: Eni

Aker Energy has reiterated its commitment to Ghana’s Pecan field, although not going so far as to commit to timing on a final investment decision (FID).

The company put its FID plans on hold in March. Now, Aker Energy has said it is working to affirm Pecan’s feasibility to be developed through a phased approach by carrying out conceptual studies.

The company said a phased development, plus a redeployed floating production, storage and offloading (FPSO) vessel would reduce capital expenditure and the breakeven cost. By cutting these costs, it makes sanctioning the plan more likely.

Aker Energy said it was considering “several FPSO candidates” for the field and a decision would be taken on technical capabilities and cost.

The company announced a deal with Malaysia’s Yinson Holdings in February but, amid its March rethink, this was terminated. At the same time, Aker Energy was reported to have cut around 150 jobs.

While most companies are putting development projects on hold, “Aker Energy and our partners, Lukoil, Fueltrade and GNPC, working closely with the government of Ghana, are actively pursuing a development concept where we can commence phase one of a phased development of the Pecan field,” said Aker Energy’s CEO Håvard Garseth.

The aim, he continued, was to establish a development concept with a “breakeven price that is sustainable and resilient also in a low oil price environment”.

The initial plan had been for one FPSO centrally located. The new approach will see an FPSO deployed to the south, for the Pecan field, which could be followed by a second vessel in the north some years in the future. The first FPSO would be ultra-deepwaters, ranging from 2,400 to 2,700 metres.

Ghana Deputy Ministry of Energy Mohammed Amin Adam said projects such as Pecan were “key toward our mission of making Ghana a major producer in West Africa and Africa as a whole”.

Aker Energy’s parent Aker, in its May report, said deepwater projects such as Pecan had been particularly hard hit by the oil price slide “due to the significant upfront investments required to bring such developments onstream”.

Recommended for you

More from Energy Voice

Latest Posts