Shell and Chevron have signed a non-binding agreement with Ghana for production rights to the South Deepwater Tano Cape Three Points oil and gas block, as the West African country seeks to attract investment and reverse declining petroleum output.

The memorandum of understanding, signed with the Ghana National Petroleum Corporation, provides a framework for negotiations on the final licence terms and remains subject to regulatory approvals.

Located in Ghana’s Tano Basin, the block covers about 3,482 square kilometres of deep to ultra-deep waters and has estimated hydrocarbon potential of more than 3 billion barrels.

The companies are expected to appraise an existing discovery and assess the block’s wider exploration potential.

The agreement comes as Ghana reviews its upstream petroleum framework, including proposed changes to taxes, royalties and the Ghana National Petroleum Corporation’s carried interest. -OGN/TradeArabia News Service