Aker Energy to consider IPO after submitting oilfield plan to Ghanaian authorities

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Aker Energy, a Norwegian oil company, announced that its exploration start-up in Ghana will submit development plans to Ghanaian authorities in March and the parent will then decide whether to sell stakes through an initial public offering.

Aker Energy plans to develop the deepwater Pecan field off Ghana.

During an earnings presentation, Aker’s Chief Executive Officer, Oeyvind Eriksen told Reuters that “depending on the approval process in Ghana, we believe the first oil is achievable in late 2020 or early 2021”.

Aker said a recent appraisal had confirmed contingent resources of 450 million to 550 million barrels of oil equivalent (mmboe) at the field. The company plans to drill another two wells in February, expected to prove between 150 and 450 mmboe of additional resources, with preliminary results expected before the development plan is submitted.

Aker controls oil company Aker BP, 30 percent owned by BP, which has announced plans to triple its oil production by 2025 from 155,700 boepd in 2018.

Eriksen said expected production from Ghana, and potential acquisitions in Norway, support the plan of Aker’s main shareholder, Norwegian billionaire Kjell Inge Roekke, to increase total oil output to over 1 million boepd by 2025.

Aker Energy operates and holds a 50 percent stake in the DWT/CTP block off Ghana, which contains several discoveries. Its partners are Russia’s Lukoil (38 percent), the Ghana National Petroleum Corporation (10 percent) and Fueltrade (2 percent).

Eriksen also told Reuters that Aker was still interested in mergers and acquisitions involving its oil service firms, including Aker Solutions. However, he declined to say whether he expected any deals to be made this year as oil prices have recovered from a slump in the last quarter of 2018.

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