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Ghana, Vitol and ENI announce transformational gas project for Ghana

Development of Sankofa fields and Gye Nyame field via OCTP Integrated Project will provide enough gas to power Ghana’s thermal power operations for 15+ years

Ghana’s Energy Minister, Kofi Buah, joined Ian Taylor, President and CEO of Vitol and Ciro Pagano EVP, ENI, today to symbolically kick off activities marketing the commencement of the OCTP development in Ghana, following the recent approval of the development plans by the Ministry of Energy. This was evinced when the development partners paid a courtesy call on The President of Ghana, His Excellency President John Dramani Mahama, at the Peduase Lodge, Aburi, Ghana, to confirm their commitment to the project.

The OCTP development comprises five fields1 (Sankofa East Cenomanian Oil, Sankofa East, Campanian Oil, Sankofa Main Gas, Sankofa East Gas, Gye Nyame Gas), and will access approximately 1.5 trillion cubic feet (tcf) of gas-in-place and around 500 million barrels of oil-in-place. The development of the pure gas fields contained in the project has been described by the World Bank as a ‘top priority’2 for Ghana, as it will underpin the growth of a domestic thermal power sector and accelerate Ghana’s industrial development.

This is the first major development of gas in Ghana and will enable the transformation of the economy. The fields contain enough gas to continuously supply Ghana’s thermal power sector until at least 2036. The non-associated gas will be produced at high rates, supplying both new and existing power plants, substituting crude oil and fuel oil and providing an environmentally cleaner and more efficient fuel for the country.

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.

The engineering design has been completed and the project has commenced. First oil and gas production will be phased through 2017 and early 2018 and oil production will reach around 80,000 boed in 2019. In order to maximise the benefit of the project, the Ministry of Energy has committed to enhancing the gas transmission system with compression stations and connections to industrial users, which will contribute to more than 700 MW of new power generation on-line in 2017.

His Excellency President Mahama said; “We are harnessing Ghana’s natural resources to power Ghana’s 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 Independence.”

Ian Taylor, President and CEO of Vitol said; “This is a transformational project for Ghana and we are proud to be a part of such an important venture. Vitol has been supplying energy to Ghana for over 25 years and we are delighted to be able to contribute to the development of Ghana’s economy through a major domestic energy solution.”
Ends

Notes to editors
1 OCTP licence comprises five fields: Sankofa Main (non associated gas), Sankofa East (non associated gas), Gye Nyame (non associated gas), Sankofa East Cenomanian (oil), Sankofa East Campanian (oil). The development is located in the Offshore Cape Three Points (OTCP) licence approximately 60 km offshore the Ghanaian coast.

2 Energizing Economic Growth in Ghana: Making the Power and Petroleum Sectors Rise to the Challenge, June 2013 – Energy Group, Africa Region, World Bank

About OCTP
The development is in a depth of 600 – 1000 m of water. The fields will be produced via sub-sea production systems located on the sea bed and the oil and gas are brought to surface by flowlines and risers connected to a floating production, storage and offloading (FPSO) vessel. Gas will be processed and transported via a dedicated pipeline to onshore gas receiving facilities located near the village of Sanzule on the coast in the Western Region of Ghana. Gas will be compressed and injected into the Western Corridor Gas Pipeline for transportation to industrial customers in Ghana. Oil will be stored in the FPSO and then offloaded to tankers for sale in the international market.

About Vitol
The Vitol Group is an energy and commodities company. Physical trading, logistics and distribution are at the core of the business, but are complemented by exploration and production, refining, shipping, terminals, power generation, mining and retail businesses. Founded in Rotterdam in 1966, today the company has almost 40 offices worldwide and its largest operations are in Geneva, Houston, London and Singapore. Its turnover in 2013 was $307 billion. For more information about Vitol, please see www.vitol.com.

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