NOTICE: The text below was created automatically and may contain errors and differences from the contract's original PDF file. Learn more here PETROLEUM COMMISSION GHANA
November 30, 2016
The Chief Executive Officer
AGM Petroleum Ghana Limited
The Chief Operating Officer
GNPC Exploration & Production Company Limited
House No. 73, 15 NME Lane,
Airport Residential Area
RE: APPLICATION FOR EXTENSION OF INITIAL EXPLORATION PERIOD
Reference is made to your letter dated October 28, 2016 on the above subject matter
under the Petroleum Agreement (PA) between the Government of the Republic of
Ghana, the Ghana National Petroleum Corporation (GNPC), the GNPC Exploration and
Production Company Ltd (GNPC Explorco) and AGM Petroleum Ghana Limited (AGM)
in respect of the South Deepwater Tano Block (SDWT) dated September 10, 2013.
We have examined critically your request to grant you an extension of an additional forty-
two (42) months for the Initial Exploration Period and note the following:
1. That you deemed it impossible to meet your work obligations due to the
Provisional Measures imposed by the ruling of the Special Chamber of ITLOS made
on April 25, 2015.
2. Under the terms of Article 4 of the PA, you were required during the period defined
as the Initial Exploration Period commencing on the effective date of the PA and
terminating at the end of the first half of the 4m Contract Year (a total of 42 months)
obliged among others to drill a minimum of two (2) Exploration Wells.
3. The targeted prospects of highest potential of exploration success where you
expect to drill the first two commitment wells are within the area subject to the
Provisional Measures imposed by the ruling of the Special Chamber of iTLOS.
4. That, up to date, you have not been able to secure well data from offsetting
discoveries to enable you carry out majority of the detailed work required to de¬
risk the SDWT contract area.
P. 0. Box CT 228 Cantonments, Accra I Tel: 0302 953392 ! 0302 953393
!email@example.com | www.petrocom.gov.gh
5. That you commit to perform a new 3D seismic survey over the south eastern portion
to complete 100% coverage of the SDWT contract area by early 2017.
6. Upon completion of the technical work indicated above, you will commence the
drilling of the first exploratory well after the Provisional Measures imposed by
Special Chamber of ITLOS have been lifted. The second commitment well will be
drilled after full analysis of the results of the first well.
Pursuant to Section 21 (4) of the Petroleum (Exploration and Production) Act, 2016 Act 919
and considering the above in the light of certain constraints you enumerated in your
letter, the Commission hereby extends the original duration of three and one half years
for the Initial Exploration Period as granted under Article 3.1 (a) of the PA to further three
years making a total of six and one half years for the Initial Exploration Period from the
Effective Date of the PA. Please be reminded that this extension is within the seven (7)
years Exploration Period provided under Article 3.1 of the PA.
However, the Commission requires that you submit a revised Work Programme reflecting
the above that will be considered and reviewed with your good selves during quarterly
Technical Meetings at the Commission.
The Commission is hopeful that this extension will enable you to build a prospect
inventory, undertake the required additional seismic acquisition and perform the drilling
campaign in accordance with the PA.
DIRECTOR, SPECIAL SERVICES
for AG. CHIEF EXECUTIVE OFFICER
cc: The Hon. Minister For Petroluem
Ministry Of Petroleum
Ag. Chief Executive Officer,
Ghana National Petroleum Corporation
Chief Operating Officer,