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Aker Energy plans IPO to fund large oil project in Ghana

Norwegian investment firm Aker plans to launch an initial public offering (IPO) of Aker Energy in late 2019 or in 2020, in order to make the company a leading exploration and production company in Ghana. Aker Energy took over Hess Gana in June 2018 and became the operator of the Deepwater Tano Cape Three Points (DWT/CTP) block with a 50% participating interest in the license (38% owned by Lukoil, 2% by Fuel Trade and 10% by Ghana National Petroleum Corporation). The DWT/CTP block is estimated to hold 550 mbl to 950 mbl of oil resources in ultra-deep waters offshore of Ghana. Crude oil production could start within 3 years after the final investment decision (FID).

Aker Energy has submitted a US$4.4bn development plan for the Pecan oil field in the DWT/CTP block; this development plan is expected to be approved by Ghana's authorities by the end of 2019. To finance the project, the group has issued subordinated convertible bonds of US$100m to Africa Finance Corporation (AFC); the bonds have a coupon of 5.5% and will be converted to equity in the event of an IPO. The IPO would also bring additional financial resources to fund the oil project.