Oil majors Shell and Chevron have signed a non-binding memorandum of understanding with Ghana’s national oil company for the potential acquisition of production rights in the South Deepwater Tano Cape Three Points oil and gas block. Ghana’s Energy Minister John Jinapor announced the agreement as the West African country seeks to attract new investment and reverse a decline in oil production. Shell said the agreement provides a framework for negotiations on final licence terms and remains subject to regulatory and other approvals.
The deal comes as Ghana reviews its legal and fiscal framework for upstream petroleum activities. Proposed reforms include reducing the Ghana National Petroleum Corporation’s initial interest in upstream projects from 15% to 10%, introducing a simpler tax regime and applying different royalty rates depending on water depth. Chevron confirmed the agreement, saying it continues to review new exploration opportunities around the world.
Ghana’s crude oil production has fallen significantly from a peak of 71.44 million barrels in 2019 to 48.25 million barrels in 2024, according to the U.S. International Trade Administration. The government hopes new investment can help reverse that trend, while major investments in the Jubilee and TEN fields by Kosmos Energy, Tullow Oil and their partners are expected to support drilling of up to 20 new wells and strengthen the country’s future oil and gas output.
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