Russia's Lukoil looks to sell stake in Ghana's Pecan field
Reuters
Published Feb 27, 2023 13:23
By Nidhi Verma, Ron Bousso and Dmitry Zhdannikov
NEW DELHI/ LONDON (Reuters) - Russia's Lukoil is in talks with Indian companies to sell its stake in the Pecan oilfield off Ghana, which could help to break an impasse in submitting development plans for the field, sources familiar with the matter said.
Talks between Lukoil officials and Indian companies, including ONGC Videsh, the foreign investment arm of Oil and Natural Gas Corp, were held this month on the sidelines of the India Energy Week conference, two Indian and two Ghanaian sources said.
The Russian firm is talking directly to potential buyers as investment bankers are not getting involved due to Western sanctions on Russia, one of the sources said.
Norway's Aker Energy, controlled by Aker ASA, owns 50% of the deepwater block off Ghana where the Pecan field is located, while Lukoil holds 38%, Ghana National Petroleum Corp. has 10%, and Fueltrade has 2%.
ONGC, Lukoil, Aker, and Ghana's petroleum ministry did not reply to requests for comment.
Aker has said the submission of Pecan's development plan to Ghanaian authorities has been postponed amid fears the project could face sanctions because of the involvement of Lukoil.
Aker ASA Chief Executive Oeyvind Eriksen has said his firm is in talks with Ghanaian authorities, and one option is for Lukoil to divest from the project.
Lukoil disputes that it poses a sanctions risk for the project.
"The company and its management are not subject to any sanctions, therefore there are no obstacles in this respect for the joint development of the oilfield," Lukoil said in a statement.
One Indian official said the development of fields in Ghana was costly because most of them have associated gas that cannot be flared, and establishing a liquefaction facility would require an investment of more than a billion dollars.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.