Tuesday, June 13, 2017

Eni to Begin Oil Production from Sankofa Ahead of Schedule


Italy-based Eni SpA E announced that it will commence commercial oil and gas production at its Sankofa field off the coast of Ghana in July, three months prior to schedule.
The Sankofa field is expected to yield 45,000 barrels per day. This is phase one of the $7.9 billion Offshore Cape Three Points (OCTP) project that will produce about 180 million standard cubic feet of gas on a daily basis from the Gye Nyame reserve by the end of 2018.

OCTP is expected to more than double the domestic gas supply and accelerate economic growth in a country that also produces gold and cocoa.

Per sources, the gas is driving the production vessel and the surplus will be reinjected as output rises after commissioning. Eni has a stake of 44.44% in OCTP, signifying the largest foreign direct investment in Ghana's history. Other stake holders include upstream trader Vitol which currently holds an interest of 35.56% while state oil company, Ghana National Petroleum Corporation, has a combined, carried and participating interest of 20%.

The project is expected to boost Ghana's oil output to about 200,000 barrels per day and gas yield to over 300 million standard cubic feet.

Despite dearth of funds to buy oil in the absence of domestic gas to fuel thermal plants, Ghana soon expects to recover from such crisis. The government projects that gas from OCTP will augment generation by 1,000 megawatts, adequate to ensure stable supply.

The West African country began producing oil in 2010 from its flagship offshore Jubilee field, followed by production from the Tweneboa, Enyenra, Ntomme (TEN) field in August 2016. Both fields are operated by UK firm Tullow Oil.

Shares of the company have lost 1.3% in the last six months, while the Oil & Gas - International Integrated industry registered a decrease of 6%.

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