Government of Ghana and multinational oil and gas corporation ExxonMobil reached an agreement here on Thursday licensing the oil company to explore for hydrocarbons in the Deep Water Cape Three Points over a period of two years.

This follows direct negotiations between the parties over the block which had been relinquished twice by Vanco Energy and Lukoil.

The agreement grants the firm exploration and production rights over the block located 92 km off the coast of Ghana, measuring approximately 1,481 square kilometers.

Minister for Energy, Boakye Kyeremateng Agyarko who signed for Ghana, said the signing of this agreement is evidence of the dynamism and commitment of the government to transforming the economic fortunes of Ghana by using the oil industry as a critical catalyst.

ExxonMobil which has since 2009 been seeking to enter the Ghanaian upstream oil industry has controlling stakes of 80 percent in the block wile government of Ghana through its explorer, Ghana National Petroleum Corporation holds 15 percent.

The remaining five percent is expected go to a local Ghanaian partner as stipulated in the new Petroleum Exploration and Production Law.

Pamela Darwin, Vice President of ExxonMobil Africa expressed excitement about the partnership.

She pledged that the company would deploy its rich upstream experience and technological expertise in assessing the exploration opportunities in the field.

The agreement can be renewed for a further one year in the case of non-discovery within the first two years.

“The addition of this block reaffirms ExxonMobil’s commitment to pursuing high-quality projects in areas with large resource potential,” said Steve Greenlee, president of ExxonMobil Exploration Company in a corporate release issued later. Enditem

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