ENI, Vitol and GNPC sanction US$7bn oil and gas project in Ghana

offshoregas-KenDoerr-flickrThe OCTP project will harness 41bn cu/m of gas and 500mn barrels of oil. (Image source: KenDoerr/Flickr) Italian oil and gas explorer ENI, along with energy and commodities company Vitol and Ghana National Petroleum Corporation (GNPC) have agreed to proceed with the US$7bn Offshore Cape Three Point (OCTP) project in Ghana

The OCTP project is considered a “transformational” one for Ghana, as it will provide sufficient gas to power Ghana’s power thermal power stations for the next 15 years and more, stated officials from ENI. It is located approximately 60 km from the Ghanaian Western Region’s coast. It comprises oil and non-associated gas fields and will access around 41bn cu/m of gas and 500mn barrels of oil in place.

First oil is expected in 2017, first gas in 2018 and peak production is expected to touch 80,000 boed in 2019, added ENI.

John Dramani Mahama, President of Ghana, said, “We are harnessing Ghana’s natural resources to power its future. The Sankofa development will provide the reliable energy source needed to accelerate the economic growth of our country. For the first time, GNPC, working with ENI and Vitol and the World Bank is delivering a domestic solution to our power sector. This is indeed a remarkable achievement – the largest single project foreign direct investment inflow to Ghana since its independence.”

The OCTP development comprises five fields – Sankofa East Cenomanian Oil, Sankofa East, Campanian Oil, Sankofa Main Gas, Sankofa East Gas, Gye Nyame Gas – and has been described by the World Bank as “top priority” for the West African country. It is expected to underpin the growth of the thermal power sector and fast-track Ghana's industrial development.

Claudio Descalzi, CEO of ENI, said, “The OCTP development is a robust integrated oil and gas project that will provide the reliable energy source needed to accelerate the economic growth of Ghana by delivering a domestic solution to feed the power sector. The sanction of this significant project comes after less than two years from the completion of a successful exploration campaign. We deliver fast-track organic growth addressing, in a sustainable manner, the energy requirements of the host country, in line with the Eni model in Africa.”

In addition to the energy source, Ghana will benefit from enhanced oil production, GNPC’s participation in the project, and royalties and taxes generated by the oil and gas production. Ghana’s Ministry of Energy has agreed to enhance the gas transmission system with compression stations and connections to industrial users, which would contribute 700MW of new power.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?