Ghana’s Aker Energy Oil Project Receives $100m Investment Funding from Africa Finance Corporation

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The Africa Finance Corporation (AFC), the leading infrastructure solutions provider in Africa, has invested $100 million in Aker Energy A.S., a subsidiary of Aker ASA, one of the highest-quality-rated companies in the Norwegian market and a leader in oil, gas and industrials.

AFC’s funding is in the form of convertible bond notes with an intention to participate in follow-on fund-raising activities. The funds will be used by Aker Energy to finance the development of the Deepwater Tano Cape Three Points block (DWTCTP) a block offshore Ghana containing multiple oil fields.

The block is owned by joint venture partners, including Aker Energy, Lukoil, Fueltrade and the Ghana National Petroleum Corporation (GNPC). The Pecan field, which is the most appraised in the DWTCTP block and the field to be developed in the first phase, is an oil field estimated to contain reserves of about 334 million barrels of oil equivalent.

AFC said the investment is aligned with its overall natural resources’ strategy, which entails building a portfolio of value added assets across the Energy value chain. By taking an early equity financier role in operational or near-operational upstream assets. AFC can enhance the revenue potential of African states to generate revenue required for investment in infrastructure and social services for its growing populations.

The investment also marks the beginning of AFC and Aker’s mutually beneficial relationship in the exploration and production sector across the African continent. As part of the deal, AFC will offer support to Aker, open new opportunities, and mitigate potential geopolitical risks.

The Republic of Ghana (Ghana) which became an AFC sovereign shareholder in 2018, having acceded to membership in 2011, will benefit from this project through increased revenue and government royalty and taxation income. The DWTCTP field is one of Ghana’s principal hydrocarbon assets and is expected to contribute to Ghana’s near-term target of an annual production volume of 500,000 barrels of oil equivalent per day.

“This is an exciting milestone for Africa Finance Corporation – we have partnered with the subsidiary of one of the most highly respected international oil, gas and industrials companies to support its first project in the African market as an operator,” said Samaila Zubairu, President and CEO of the AFC, who was commenting on the announcement.

“This is an opportunity for AFC to invest alongside a technically and financially strong sponsor that requires project development expertise and public sector advice in Africa, both of which AFC is ideally placed to offer,” he added.

“We value AFC’s vote of confidence by collaborating with Aker Energy and the commitment to further strengthening this partnership going forward,” said Aker Energy CEO, Jan Arve Haugan.

“We believe AFC will be a valuable partner to help Aker Energy navigate the opportunities and challenges that lies ahead of us,” he concluded.


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