AS new energy frontiers emerge across Africa, significant opportunities are opening up in the continent’s nascent oil territories. Companies are laying the groundwork for sustainable, long-term relationships that promise to unlock prosperity for their host nations. Kadijah Amoah, CEO of Pecan Energies Ghana, highlights how her company is navigating this landscape, particularly in Ghana, where Pecan Energies is deeply involved in the development of offshore oil resources.
With more African nations becoming significant players in the global energy sector, and new discoveries, like those in Namibia, showing immense potential, the continent is poised for a surge in oil production that could substantially boost regional GDP. As more oil companies enter the African market in the coming years, understanding the unique challenges and opportunities these new territories present will be critical.
For Pecan Energies, the journey of developing interests in the deep waters off Ghana’s coast is a prime example of the potential in these emerging markets. Pecan Energies, owned by the Africa Finance Corporation (AFC), is uniquely positioned to contribute to the continent’s economic development. With roots deeply embedded in Africa, the company is committed to investing in job creation, building local capacity, and ensuring that the value generated from Africa’s resources remains on the continent.
Pecan Energies is currently in the pre-development phase of its investment in the Deepwater Tano Cape Three Points (DWT/CTP) block, located 115 kilometres offshore Ghana. The company is making significant progress toward a Final Investment Decision (FID) on its 50 percent stake in the project, which is expected to play a major role in Ghana’s oil sector.
The Ghanaian oil industry
Ghana’s oil sector is still in its early stages, with commercial oil production beginning in 2010 following the discovery of the Jubilee offshore field in 2007. Currently, Ghana produces around 170,000 barrels of crude oil per day and about 325 million standard cubic feet of natural gas per day. In comparison, Namibia’s recent discoveries are projected to reach peak production of approximately 700,000 barrels per day within the next decade.
The Ghanaian government is keen to boost oil and gas production by selling more exploration rights, a strategy aimed at generating revenue to fund the country’s energy transition and stabilize its economy. Ghana’s experience in developing its oil sector may provide valuable insights for other emerging oil territories in Africa.
For Pecan Energies, the focus has been on building strong local partnerships and creating opportunities to develop the domestic energy sector. The company has been active in Ghana for several years, working to lay the foundation for a thriving local industry.
Local content planning
‘A key part of Pecan Energies’ strategy is its commitment to developing local talent. The company has crafted a robust local content plan aimed at progressively building the skills of the local workforce. Recently, Pecan Energies conducted an internal survey to assess the competency of Ghanaian industry professionals and companies, adjusting its local content targets accordingly, Amoah says.
Recognising the importance of education in driving the future of Ghana’s economy and energy sector, Pecan Energies has prioritised investments in Science, Technology, Engineering, and Mathematics (STEM) education through its Pecan Inspire Scholarship Programme. ‘To date, the programme has awarded full scholarships to 141 students pursuing various courses at tertiary institutions across Ghana. Additionally, over 1,000 students have received scholarships to study at the senior high school level, all before the company has even commenced commercial oil production,’ she adds.
Empowering the workforce
Pecan Energies has also made significant investments in human resource development. During its 2019 exploration and appraisal drilling campaign, the company achieved a workforce composition of 70 percent Ghanaians on the deepwater rig, encompassing all levels of expertise, from trainees and technicians to engineers and supervisors. This commitment underscores Pecan Energies’ dedication to empowering the local workforce and fostering the development of human capital in Ghana.
The company currently boasts a 100 percent Ghanaian workforce and remains committed to balancing economic growth through oil production with the need to mitigate climate impact. Pecan Energies plans to integrate sustainable practices into every phase of its operations, including employing energy-efficient technologies and processes to minimise emissions and reduce environmental impact.
Balancing growth with sustainability
Pecan Energies is dedicated to reducing greenhouse gas emissions through the adoption of best available technologies and energy efficiency design studies during the initial stages of project development. The company aims to keep emissions as low as reasonably practicable while ensuring that local communities benefit from the economic opportunities created by its operations.
The company is fully compliant with Environmental Impact Assessment (EIA) requirements and conducts thorough assessments before initiating any new projects. This proactive approach helps identify potential environmental risks and allows the company to implement mitigation strategies effectively.
Looking ahead, Pecan Energies aspires to be a thought leader in the industry, advocating for responsible exploration and production practices that benefit both the community and the continent. By reinvesting revenues derived from oil production into renewable energy initiatives, Pecan Energies believes it can contribute to the broader energy mix in host countries while mitigating the climate impact of oil operations.
‘As new oil and gas relationships are forged across Africa, companies like Pecan Energies are playing the long game. To ensure these partnerships thrive, they must involve all stakeholders and be designed from the outset to benefit the people of Africa,’ Amoah says.
