Ghana and Italy’s Eni have signed a US$6bn deal to start oil and gas exploration work at Offshore Cape Three Points (OCTP) Block in the west African country
According to the deal, Eni will also deploy a third floating production storage and offloading (FPSO) vessel at the offshore project, which will help boost oil production in the country.
The Ghanaian Energy Ministry said that the deal is subjected to Parliamentary approval and the OCTP Block should start producing oil and gas by 2017.
“This project promises to deliver up to 4.81mn cu/m of gas per day for the next 20 years. This will put Ghana on the path of addressing one of the critical constraints to power generation, which is clean fuel source,” the Ministry added.
Emmanuel Armah Kofi Buah, petroleum minister of Ghana, noted that the US$6bn deal will cover all costs required for the production of oil and gas at the OCTP Block, including the initial cost of the FPSO, which will be leased.
Eni operates the OCTP Block in partnership with commodities trader Vitol and Ghana National Petroleum Corporation (GNPC).