The Government of Ghana, the Ghana National Petroleum Corporation (GNPC) and GNPC Explorco have signed a non-binding memorandum of understanding with Shell Overseas Holdings and Chevron Sub-Saharan Africa Ventures covering the South Deepwater Tano Cape Three Points block offshore Ghana’s Western Region.
As reported by Reuters, the agreement was signed in Accra on September 1, 2026, at the opening of Africa Oil Week. It provides a framework for further technical and commercial talks on exploration and production rights, including appraisal of an existing discovery and assessment of the wider oil and gas potential of the acreage. Final license terms remain subject to negotiation and regulatory approvals.
The 3,482-square-kilometre block lies in the deep-to-ultra-deepwater Tano Basin, in water depths of up to about 3.5 kilometers. Ghanaian reports have cited hydrocarbon potential of more than 3 billion barrels. In 2019, AGM Petroleum drilled the Nyankom-1X well and found oil in two reservoirs before relinquishing the block in 2023.
Shell said that the MoU sets a basis for negotiations on final terms. Chevron said it is continually reviewing new global exploration opportunities. Equity splits and a detailed work program were not disclosed at signing.
The deal comes as Ghana reviews its upstream legal and fiscal framework to attract investment and reverse falling output. Energy and Green Transition Minister John Jinapor said proposed changes include cutting GNPC’s initial carried interest in new projects from 15% to 10%, simplifying tax treatment and applying differentiated royalties by water depth. Crude production has declined from a peak of 71.44 million barrels in 2019.
Jinapor described the MoU as a signal of renewed investor interest and said Ghana wants similar partnerships to support energy security, growth and jobs. The government has separately announced about $3.5 billion in commitments from existing operators at Jubilee, TEN and Offshore Cape Three Points.
The South Deepwater Tano agreement is preliminary. Commercial development would depend on further appraisal, fiscal terms, approvals and the economics of ultra-deepwater operations.