Business News of Thu, 23 Aug 201811
First Sankofa gas deliveries to power producers
Offshore Cape Three Points (OCTP) has started delivery of gas from the Sankofa Field to GNPC, marking the beginning of stable supplies of cost-effective and environmentally friendly domestic fuel for Ghana’s power sector.
In addition, Ghana will 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/MMBtu, greatly reducing Ghana’s fuel costs compared to liquid fuels or imported gas.
The project will provide approximately 180 MMscf/d 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 stable, reliable, affordable gas supplies to Ghana with estimated energy cost savings of up to 40% per year for the state.
Gas is flowing from two of the four deep water subsea wells, and gas volumes will increase gradually as the country’s downstream gas infrastructure undergoes further commissioning.
OCTP Integrated Oil and Gas Project is made up of Eni 44.44% Operator, Vitol 35.56%, GNPC 20%. First oil was achieved in May 2017, three months ahead of schedule. With completion of the OCTP gas facilities, OCTP overall oil and gas production can reach up to 85,000 barrels of oil equivalent per day once the gas and condensate production has been fully ramped up.
The project benefits from the support of IFC and MIGA, part of the World Bank Group and UK Export Finance. It is estimated that the project will generate US$7.9billion of investment in Ghana over its full life, with 320 contracts already awarded to Ghanaian companies valued at US$1.8billion.
Vitol is an energy and commodities company, and its primary business is trading and distribution of energy products globally – it trades over seven million barrels per day of crude oil and products and at any time has 250 ships transporting its cargoes.
Vitol’s clients include national oil companies, multinationals, leading industrial and chemical companies and the world’s largest airlines. Founded in Rotterdam in 1966, today Vitol serves clients from some 40 offices worldwide and is invested in energy assets globally including: 18mm3 of storage across seven continents, 480kbpd of refining capacity and 5,000 service stations across Africa, Australia, Eurasia and in Northwest Europe. Revenues in 2017 were US$181billion.