American multinational oil and gas corporation, ExxonMobil, has formally withdrawn its interest in the Deepwater Cape Three Point oil bloc in Ghana.
In a letter to Ghana’s Energy Minister, Dr. Matthew Opoku Prempeh, and other stakeholders including the CEO of the Ghana National Petroelum Corporation (GNPC), Dr. KK Sarpong and Egbert Faibile Jnr.,
the CEO of Petroleum Commission, the company, said it is unwilling to enter an extension of the contract originally signed in 2018.
“EMEPGL hereby notifies the Republic that it has determined not to enter into the First Extension Period, and hereby voluntarily surrenders and relinquishes one hundred percent (100%) of its rights in and to the DWCTP Contract Area. EMEPGL also confirms that it hereby reisgns as Operator fo the DWCTP Block and that it has fully performed the relevant Minimum Work Obligation under the Petroleum Agreement. The above is without prejudice to the EMEPGL’s accrued rights,” excerpts of the letter read.
ExxonMobil did not give detailed reasons for its decision.
ExxonMobil acquired rights in 2018 to explore the ultra-deepwater block Deepwater Cape Three Points.
The associated petroleum agreement was ratified in April 2019. ExxonMobil opened a venture office in Accra in June 2019 to progress exploration activities.
The deal was the first to be signed by Ghana after the International Tribunal for the Law of the Sea drew an ocean boundary favoring Ghana in a dispute with Ivory Coast.
The Deepwater Cape Three Points block, is located 57 miles (92 kilometres) off the coast of Ghana. It measures approximately 366,000 acres (1,482 square kilometres) in water depths ranging from 5,085 feet to 9,350 feet (1,550 meters to 2,850 meters).