AGM Petroleum Agreement: Everything You Need to Know
The AGM Petroleum Agreement is a contract that grants a license to AGM Petroleum Ghana Limited to explore and produce oil and gas in Ghana`s South Deepwater Tano block. The agreement was signed between the government of Ghana and the AGM Petroleum Ghana Limited in May 2018.
The South Deepwater Tano block covers an area of approximately 1,340 square kilometers and is located in the Gulf of Guinea, about 60 kilometers off the coast of Ghana. The block is believed to have significant oil and gas reserves, and the AGM Petroleum Agreement is expected to boost the country`s oil and gas industry and increase revenue.
Under the agreement, AGM Petroleum Ghana Limited is obligated to conduct exploration activities during the exploration period, which may last up to seven years. During this time, the company is required to collect and analyze data to identify potential hydrocarbon reserves.
If the exploration activities are successful, AGM Petroleum Ghana Limited will proceed to the development phase, where it will develop and produce oil and gas from the South Deepwater Tano block. The company will also be required to submit a development plan to the government of Ghana for approval.
The AGM Petroleum Agreement also includes provisions for local content and social responsibility. The agreement requires AGM Petroleum Ghana Limited to prioritize local businesses and contractors in its operations and to provide training and employment opportunities to Ghanaians. The company is also expected to contribute to the development of the local community through social investments.
The AGM Petroleum Agreement is a significant development for Ghana`s oil and gas industry, as it is expected to create jobs, boost the economy, and increase revenue. The agreement is also aligned with Ghana`s long-term development plan, which aims to make the country a hub for oil and gas exploration and production in West Africa.
In conclusion, the AGM Petroleum Agreement is a critical milestone for the oil and gas sector in Ghana. The agreement has the potential to unlock significant oil and gas reserves, create jobs, and boost the economy. It is also a testament to Ghana`s commitment to developing the oil and gas industry in a sustainable and socially responsible manner.