Business News of 2014-08-08

Petroleum Commission reviews $6bn plan for oil fields

The Petroleum Commission is currently reviewing the off-shore Cape three-point plan of development, for oil firm ENI to start the development of the Sankofa Gye Nyame oil fields.

This comes after President Mahama said the government would, by the end of August, sign a new deal with ENI concerning the Sankofa field, to explore more than a trillion cubic feet of gas, in addition to 50,000 barrels of oil daily.

Speaking to Citi Business News, the director of special services at the Commission, Kweku Boateng, confirmed that they were currently reviewing the OCTP plan of development of the off-shore Cape three points plan.

“The operator ENI of Italy has submitted a plan to develop this field; initially the commission reviewed the development concept which is an integrated oil and gas project with the first oil expected in 2016/2017 and first gas a year later,” Mr. Boateng said.

He also confirmed that the oil field would be developed by the ENI as the operator, with the GNPC and v-tour as partners.

According to Mr. Boateng, “the total development cost for the Sankofa Gye Nyame oil fields is estimated to be 6 billion dollars, with the initial development cost, that’s if you take the integrated project well over 5.8 billion dollars.”

Kweku Boateng added that a set of recommendations will be presented to the energy ministry for consideration before the signing of the contract, which “the minister will approve or reject.”

Meanwhile, the Petroleum Commission, Ghana National Petroleum Corporation (GNPC) and energy ministry, are negotiating the gas commercial contract for the Sankofa Gye Nyame oil fields.

Mr. Boateng, revealed that, as part of the plan of development the Petroleum Commission was part of the team, “together with the GNPC and ministry of energy, negotiating gas commercial contract for the field.”

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