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1.45 Tcf gas, 5MMBO project is 12% of 2015’s Foreign Direct Investment in Africa: Ghana President

The government of Ghana, ENI (ticker: E) and Vitol yesterday signed an agreement to start work on the Offshore Cape Three Points (OCTP) oil and gas project offshore of Ghana. The new project, set approximately 60 km (37 miles) from the Ghanaian Western Region’s coast, is comprised of oil and non-associated gas fields and will access around 1.45 Tcf of gas and 5 MM barrels of oil in place, according to a company release from ENI.  

The government of Ghana said that the project will cost $7 billion and provide an additional 1,100 megawatts to the existing power infrastructure, which has struggled to meet the country’s growing demand. President John Dramani Mahama of Ghana said that the investment for the OCTP project represented 12% of the total Foreign Direct Investment for Africa in 2015.

Project’s NatGas to Fuel Electricity Production

The five unassociated gas fields that make up the OCTP project contain enough gas to continuously supply Ghana’s thermal power sector until 2036. The gas will supply both new and existing power plants, substituting crude oil and fuel oil and providing an environmentally cleaner and more efficient fuel source for the country, said Vitol in its press release.

First oil and gas production will be phased through 2017 and early 2018, with oil production expected to reach around 80 MBOEPD in 2019. Ghana’s Ministry of Energy has committed to enhancing the gas transmission system in the country with compression stations and connections to industrial users in order to maximize the effects of the project.

OCTP operates at a depth of 600-1,000 meters (2,000-3,200 feet). The fields will be produced via sub-sea production systems located on the sea bed and the oil and gas are brought to the surface by flowlines and risers connected to a floating production, storage and offloading (FPSO) vessel. ENI holds a 47.22% stake in the operation through its subsidiary ENI Ghana, with Vitol (37.77%) and Ghana National Petroleum Company (GNPC; 15%).

Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.


Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.