Offshore Cape Three Points (OCTP), located in approximately 60km off the coast of Ghana, has started delivery of gas from the Sankofa field to Ghana National Petroleum Corporation (GNPC)
According to GNPC, the move marks the beginning of stable supplies of cost-effective and environmentally friendly domestic fuel for Ghana’s power sector.
Ghana is expected to benefit significantly from GNPC’s carried and participating interest in the project, Ghana’s royalty share of oil and gas production and taxes paid by Vitol and Eni.
The estimated net cost of gas to Ghana will be less than US$4.5 per MMBtu, reducing Ghana’s fuel costs compared to liquid fuels or imported gas.
The project will provide approximately 180mn scf per day for at least 15 years, sufficient to supply half of Ghana’s power generation requirements. It is the only deep offshore non-associated gas development in Sub-Saharan Africa entirely destined for domestic consumption and will guarantee reliable and affordable gas supplies to Ghana with estimated energy cost savings of up to 40 per cent per year for the State.
Eni, with 44.44 per cent stake, is the operator of Africa’s OCTP integrated oil and gas project, with Vitol and GNPC holding 35.56 per cent and 20 per cent respectively. With the completion of the OCTP gas facilities, OCTP overall oil and gas production can reach up to 85,000 boepd once the gas and condensate production has been fully ramped up.
The project is supported by IFC and MIGA, part of the World Bank Group and the UK Export Finance. The project is further estimated to generate US$7.9bn of investment in Ghana over its full life, with 320 contracts already awarded to Ghanaian companies valued at US$1.8bn.
