Offshore oil and gas operator Aker Energy has terminated a letter of intent (LoI) for the Pecan project in Ghana. A contract would have seen Yinson West Africa charter, operate, and maintain a facility in the area.
Aker Energy issued the LoI to Malaysia’s floating, production, storage and offloading (FPSO) service provider Yinson Holdings in February this year.
The Pecan field, operated by Aker, is located offshore Ghana in the Gulf of Guinea. It lies in the Deepwater Tano Cape Three Points block (DWT/CT)
The termination comes after the company announced its plans to postpone development of the project until further notice due to the Covid-19 pandemic.
Meanwhile, Yinson added that the group will seek compensation for the termination, as agreed in the LoI. This means there may not be any “material impact” on Yinson Group’s earnings for this financial year.
Aker owns 50% of the field and operates it. Other partners include Lukoil (38%), Fueltrade (2%) and Ghana National Petroleum Corporation (10%).
This February, Aker Energy awarded a contract to geophysical services provider Fugro for the Pecan field.
The company completed a successful drilling operation of the Pecan-4A appraisal well in January 2019.
In March last year, Aker Energy discovered oil in the Pecan South-1A well. The well sits south of the main Pecan field, in the Deepwater Tano Cape Three Points (DWT/CTP) block.