Norwegian billionaire Kjell Inge Roekke’s Aker Energy plans “important” oil exploration and manufacturing in Ghana after a $100 million deal to purchase Hess Corporation’s (HES.N) enterprise there.

Aker Energy stated the proposed transaction, which is topic to approval from Ghanaian authorities, provides it a 50-percent stake within the extremely deepwater Tano Cape Three Points block which holds an estimated 550 million barrels of oil equal and has the potential for an extra 400 million barrels.

Aker (AKER.OL), Roekke’s essential listed funding automobile, owns 50 p.c of Aker Energy, whereas TRG, his privately held holding firm, owns the rest.


Aker Energy plans to current a improvement plan for the block this 12 months, with manufacturing from the West African nation anticipated to start out in 2021.

“Ghana remains to be within the early days of creating its oil and gasoline sources, so for us, it means we will shortly construct up there at a really thrilling worth,” Aker CEO Oeyvind Eriksen instructed Reuters on the sidelines of an earnings presentation.

Eriksen likened the Ghanaian subject to the Johan Castberg subject within the Norwegian Arctic as each have a break even worth decrease than $35 per barrel. Brent crude LCOc1 was buying and selling at round $65 on Monday.

Roekke’s TRG can be concerned in a separate block within the space, which can present extra sources to the event, Aker stated, including that the plan is to make use of a floating manufacturing, storage and offloading vessel.

Ghana is searching for to develop its oil and gasoline sources past its flagship Jubilee subject. Overall it was anticipated to supply a median of 200,000 barrels of oil per day in 2017, the nation’s deputy oil minister instructed Reuters in June.

The deal is the second between an Aker group firm and Hess, following Aker BP’s (AKERBP.OL) buy of the Norwegian belongings of Hess in a $2 billion transaction.

When the sphere improvement plan in Ghana has been authorized, Aker expects to draft monetary or industrial companions into the venture to assist pay for it.

Shares in Aker had been up 1.6 p.c at 1053 GMT, outperforming a zero.2 p.c rise within the Oslo benchmark index .OSEBX.


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