Billions at Risk for Ghana Oil Firms on Ocean Boundary Ruling With Ivory Coast

Ghana's decision to seek arbitration in a dispute with Ivory Coast over an oil-rich basin in the Atlantic could prove costly for the country and a consortium led by Tullow if a court halts development there.

The International Tribunal for the Law of the Sea will rule on Saturday on Ivory Coast's February request for a moratorium on activity in the basin. The decision is part of legal proceedings on a maritime border dispute sought by Ghana's President John Dramani Mahama in September.

Although many expect the dispute to be ultimately settled in Ghana's favor, analysts say a ruling that prevented the $4.9 billion offshore TEN oil and gas field opening in mid-2016 would be a further blow to the battered Ghanaian economy.

Africa's Oil 'Sweet Spots' Still Viable After Price Rout

African oil explorers will keep drilling in select locations such as onshore east Africa and less complex projects off the West African coast even with oil at $60 a barrel, executives and analysts told Reuters. 

But they warned that African governments with reserves in less attractive locations should revise terms now or forfeit the investment, leaving the oil and gas underground. "There are still some exciting areas in Africa like east Africa and in particular the onshore areas," said Aidan Heavey, CEO of one of Africa's biggest explorers Tullow Oil, referring to drilling projects in Kenya and Uganda. "This is certainly not the end of African oil - far from it."