AGM Petroleum Ghana Limited (AGM) has decided to quit the South Deep Water Tano (SDWT) block after considering all options.

The move comes as the Energy Ministry issued a final deadline to Aker Energy to submit its Plan of Development

The SDWT block is located in ultra-deep waters and requires substantial investments to proceed with exploration.

AGM has fulfilled all its obligations under the petroleum agreement and has contributed significantly to Ghana’s petroleum industry by drilling two ultra-deepwater wells, including the Nyankom discovery. AGM has also carried out CSR investments that have benefited the Ghanaian authorities and other industry players.

A statement issued by the company notes that, “the decision to relinquish the SDWT block is a normal conclusion for exploration blocks, as the petroleum regime in Ghana presumes that the operator has to decide to drill or drop at specific times during the exploration period.

Per this decision, AGM’s decision has no implication for Aker Energy’s plans in Ghana. Aker Energy is the field operator of the Pecan development project in Ghana’s Deepwater Tano Cape Three Points block.

However, Aker Energy may lose its interest in the Pecan field if it fails to submit its Plan of Development (PoD) by 15 April 2023. The PoD is a critical document that outlines the development plan for the offshore Pecan field.