Implementation of the Offshore Cape Three Points (OCTP) /Sankofoa-GyeNyame Gas Project is about 54 per cent complete as at the end of August 2016 while the Floating, Production and Storage and Offloading (FPSO) Vessel is almost 80 per cent complete.
To that effect, oil production from the SankofaGyeNyame Oil Field, the third producing asset after Jubilee and TEN Fields, is expected to begin in the second quarter of 2017 while production of gas is expected start in second quarter of 2018.
The Chief Executive Officer of the Ghana National Petroleum Corporation (GNPC), Mr Alex Mould, made these known at the signing of the OCTP/Sankofa-GyeNyame Gas Project Security Package in Accra, yesterday.
Speaking at the ceremony, Mr Seth Terkper, Minister for Finance, disclosed that the project was Ghana's First gas-to-power Project, with a capacity to supply 180 million standard cubic feet of natural gas, which would generate up to 1,100 megawatts of power and, together with the Jubilee and TEN Oil Fields, contribute significantly to Ghana's energy security needs.
In a statement, Mr Henry Kerali, World Bank Country Director in Ghana, said the project was one of the Bank's largest private sector investments being undertaken in sub-Saharan Africa and the largest Guarantee operation in the 20-year history of World Bank guarantees.
MrKerali said gas supply from the project was expected to be much cleaner, stable and secure, and serve as a local source of fuel not subject to the fluctuations of rainfall or the global price of oil and.
In effect, he said, the project would assist in reducing greenhouse gas emissions resulting from power generation from crude oil.
The OCTP/Sankofa-GyeNyame Oil Field holds an estimated proven hydrocarbon reserve of 204 million barrels of oil and 1.1 trillion standard cubic feet of natural gas.
The World Bank is supporting the project with US$ 7.9 billion through a combination of International Development Assistance (IDA) payment guarantee and the International Bank for Reconstruction and Development (IBRD) (Enclave) loan guarantees.
Under the project, GNPC with its partners, VITOL Upstream Ghana Limited and ENI Ghana-- private gas suppliers --are developing the oil discoveries as integrated oil and gas project with shared facilities on FPSO. The suppliers will develop, produce and sell gas to GNPC.
Eni Ghana, operator of the oil block, holds a 47.2 per cent participating interest while VITOL holds 37.8 per cent interest, with GNPC holding a 15 per cent carried interest and 5 per cent additional participating interest.
Five Agreements were signed under the project, namely the IDA Indemnity Agreement, IDA Project Agreement, IDA Guarantee Support Agreement, IDA Co-operation Agreement and the Reimbursement & Credit Agreement.