Eni, Vitol and Ghana sign agreement to start work on $7bn offshore oil and gas project
- Created on Monday, 02 March 2015 13:41
Eni, Vitol and the Government of Ghana have signed an agreement to start work on the $7bn Offshore Cape Three Points (OCTP) oil and gas project.
Located about 60km from the Ghanaian Western Region's coast, the project features oil and non-associated gas fields and will access approximately 41 billion cubic metres of gas and 500 million barrels of oil.
First oil is expected in 2017 and initial gas in 2018, with peak production planned to be 80,000 barrels of oil equivalent per day (boepd) in 2019.
The project will provide domestic gas supply to Ghana's thermal power plants for more than 15 years.
The country will benefit from additional oil production commencing from 2017 via Ghana National Petroleum Corporation's (GNPC) participation in the project, as well as royalties and taxes generated by production.
The project will add 1.15 trillion cubic feet of gas and aims to bring Ghana out of the existing power deficit.
Eni CEO Claudio Descalzi 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."
Eni, via its own subsidiary Eni Ghana, operates OCTP with a 47.22% interest, while Vitol and GNPC own 37.77% and 15% stakes respectively.