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%).
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