Ghana has had talks with Exxon Mobil Corp, a U.S oil firm,to undertake deepwater exploration off the country's coast, the deputy minister stated on Monday.

The deputy minister told the press on the sidelines of an Africa oil conference in Accra that the negotiation is a good one. "The negotiations are ongoing according to our current laws...so far so good".

Mr. Adam said that the government has gone in for direct negotiation with Exxon Mobil without open competitive tendering due to the peculiar nature of the field and due to the fact that Ghana is yet to pass regulations to back open competitive tendering.

A new petroleum law states that oil contracts should be awarded through open and competitive tender. It also permits direct negotiation when it necessary and justifiable.

The U.S oil firm signed a Memorandum of Understanding with Ghana in 2015 to assess its Deepwater Cape Three point (DCTP)region, 150 km (100 miles) off the coast water depth ranging between 2000 and 4000 metres  (6500 and 13ooo feet).

The government also indicated that two firms had separately opted not to explore the field because of its depth and high risk levels.

Mr Adam said the government took into consideration the Exxon Mobil bid and deemed it important  given the firm's experience and capability in deepwater operations.

The DCTP interest is the second attempt by Exxon Mobil to acquire oil assets in Ghana after the government blocked its 2009 bid to take Kosmos' stake in the flagship Jubilee field.

Ghana, aside producing cocoa and gold is expected to ramp up oil production to around 250, 000 barrels per day by 2019 from four oil fields including Jubilee whose current combined average annual output is around 100,000 barrels per day.

Salim Abubakr/ghanaguardian.com