ACCRA, Sept 3 – Ghana has signed a memorandum of understanding with Shell, Chevron and state-owned petroleum entities to advance exploration and production activities in the South Deepwater Tano block, opening a new phase of assessment for an offshore area with estimated hydrocarbon potential of more than 3 billion barrels.
The agreement was signed in Accra on September 1, 2026, during the opening of Africa Oil Week 2026. The parties include the Government of Ghana, Ghana National Petroleum Corporation (GNPC), GNPC Explorco, Shell Overseas Holdings and Chevron Sub-Saharan Africa Ventures.
The South Deepwater Tano block covers approximately 3,482 square kilometres in the deep-to-ultra-deepwater Tano Basin off Ghana’s Western Region. Water depths in the area reach nearly 3.5 kilometres, making exploration technically demanding and potentially requiring substantial capital investment.
The block already has a confirmed oil discovery. AGM Petroleum drilled the Nyankom-1X well in 2019, encountering oil in two reservoirs. The company subsequently relinquished its interest in the block in 2023.
Under the new agreement, Shell, Chevron, GNPC and GNPC Explorco will collaborate on further appraisal of the existing discovery while assessing the wider oil and gas potential of the block. The MoU provides a framework for additional technical and commercial work before decisions are made regarding potential future development.
Ghana’s Minister of Energy and Green Transition, Dr John Abdulai Jinapor, highlighted the agreement during his address at Africa Oil Week, presenting it as part of the country’s efforts to advance its petroleum industry.
“Today we are going to sign another milestone agreement to advance our oil and gas sector,” Jinapor told delegates.
The agreement comes as Ghana seeks to attract new investment into its offshore petroleum sector and accelerate exploration across its remaining prospective basins. The country’s existing oil and gas industry has been an important source of export earnings, government revenue and foreign investment.
The South Deepwater Tano block could provide an additional avenue for expanding Ghana’s upstream petroleum resources if further appraisal work confirms commercially viable reserves. However, the signing of the MoU does not yet represent a final investment decision or guarantee that the block will proceed to production.
The parties did not disclose their respective equity interests or provide details of the specific work programme at the time of signing. Those details will be important in determining the scale of investment required and the timetable for further exploration and potential development.
For Ghana, the agreement represents another attempt to mobilise international technical expertise and capital for its offshore resources while maintaining participation through GNPC and GNPC Explorco. The outcome of the appraisal and exploration programme will determine whether the block can progress from an existing discovery to a commercially developed petroleum asset.
