Ghana signs preliminary deal with Shell and Chevron on deepwater oil and gas development
The Government of Ghana, the Ghana National Petroleum Corporation (GNPC) and GNPC Explorco have signed a non-binding memorandum of understanding with Shell Overseas Holdings and Chevron Sub-Saharan Africa Ventures covering the South Deepwater Tano Cape Three Points block offshore Ghana’s Western Region.
As reported by Reuters, the agreement was signed in Accra on September 1, 2026, at the opening of Africa Oil Week. It provides a framework for further technical and commercial talks on exploration and production rights, including appraisal of an existing discovery and assessment of the wider oil and gas potential of the acreage. Final license terms remain subject to negotiation and regulatory approvals.
The 3,482-square-kilometre block lies in the deep-to-ultra-deepwater Tano Basin, in water depths of up to about 3.5 kilometers. Ghanaian reports have cited hydrocarbon potential of more than 3 billion barrels. In 2019, AGM Petroleum drilled the Nyankom-1X well and found oil in two reservoirs before relinquishing the block in 2023.
Shell said that the MoU sets a basis for negotiations on final terms. Chevron said it is continually reviewing new global exploration opportunities. Equity splits and a detailed work program were not disclosed at signing.
The deal comes as Ghana reviews its upstream legal and fiscal framework to attract investment and reverse falling output. Energy and Green Transition Minister John Jinapor said proposed changes include cutting GNPC’s initial carried interest in new projects from 15% to 10%, simplifying tax treatment and applying differentiated royalties by water depth. Crude production has declined from a peak of 71.44 million barrels in 2019.
Jinapor described the MoU as a signal of renewed investor interest and said Ghana wants similar partnerships to support energy security, growth and jobs. The government has separately announced about $3.5 billion in commitments from existing operators at Jubilee, TEN and Offshore Cape Three Points.
The South Deepwater Tano agreement is preliminary. Commercial development would depend on further appraisal, fiscal terms, approvals and the economics of ultra-deepwater operations.
About the Author
Bruce BeaubouefBruce Beaubouef
Senior Lead Reporter / Managing Editor
Bruce Beaubouef is Managing Editor for Offshore magazine. In that capacity, he plans and oversees content for the magazine; writes features on technologies and trends for the magazine; writes news updates for the website; creates and moderates topical webinars; and creates videos that focus on offshore oil and gas and renewable energies. Beaubouef has been in the oil and gas trade media for 25 years, starting out as Editor of Hart’s Pipeline Digest in 1998. From there, he went on to serve as Associate Editor for Pipe Line and Gas Industry for Gulf Publishing for four years before rejoining Hart Publications as Editor of PipeLine and Gas Technology in 2003. He joined Offshore magazine as Managing Editor in 2010, at that time owned by PennWell Corp. Beaubouef earned his Ph.D. at the University of Houston in 1997, and his dissertation was published in book form by Texas A&M University Press in September 2007 as The Strategic Petroleum Reserve: U.S. Energy Security and Oil Politics, 1975-2005.