Oil exploration: Tullow fails to make it to next round of competitive bidding

Oil exploration: Tullow fails to make it to next round of competitive bidding

Tullow Oil failed to make it to the next stage in the maiden licensing round for oil blocks in Ghana.

The oil company was not shortlisted as part of companies whose bid qualified for the next process in the bidding rounds.

The development comes on the back of a statement issued by the Ministry of Energy on Tuesday [July 2, 2019] announcing the successful bids received for two oil blocks on offer.

The Ministry of Energy has awarded First Exploration and Petroleum Development Company Limited in partnership with Elandel Energy Ghana Limited block 3, while Eni Ghana Exploration and Production Limited in partnership with Vitol Upstream Tano Limited block 2 for exploration.

The decisions were arrived at after evaluating the bids from Tullow Oil, ENI and E and P that were received on 21st May, 2019.

According to the Ministry of Energy, the four companies that have been shortlisted, have been invited over for negotiation on the detailed terms of the Petroleum Agreement pursuant to provisions of the General Petroleum Regulations.

By the latest move, Tullow failed to proceed to the next stage of the licensing round.

Ghana starts competitive bidding for oil blocks

The government, through the Energy Ministry, earmarked six oil blocks for exploration and production.

Three of the blocks; 2, 3 and 4 were to go through a competitive bidding process while two blocks-5 and 6-were supposed to be for direct negotiations.

One of the blocks was however reserved for Ghana National Petroleum Corporation (GNPC).

The bid process, which was ushered in by President Nana Akufo-Addo on October 15, 2018, begun with sixteen (16) companies putting in Sixty (60) applications for the different oil blocks put up by the government.

Blocks 2, 3 and 4 are up for competitive bidding, while Blocks 5 and 6 will be awarded by government after Direct Negotiation with some select oil companies.


Source: citibusinessnews.com



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