As work on the Gye Nyame Sankofa field reaches 54 percent, the Ghana National Petroleum Corporation (GNPC) has assured that it will work the with the Public Utilities Regulatory Commission (PURC) to help generate money to refinance the loans used by government as a partner in the project.
The Sankofa field is estimated to hold 204 million barrels of oil and 1.1 trillion standard cubic feet of natural gas.
Speaking at a signing ceremony to provide 700 million dollars guarantee by the World Bank, the CEO of the GNPC, Mr. Alex Mould stated that the main obligation of GNPC is to pay for the gas supplied.
“The signing of the World Bank Security Package Agreements brings into effect GNPC’s obligations under the Gas Sales Agreement. The main obligation of GNPC and the nation is to pay for the gas supplied,” he said.
He stated that GNPC will continue to work with relevant State agencies to ensure that the cash waterfall mechanism being developed by PURC is fully implemented.
“We must therefore work collectively to ensure that the power generated from this gas raises the needed revenue that is dedicated to paying for the gas, and other costs of power supply,” she said.
Mr. Mould pointed out that the nation has an obligation to meet the set of milestones that requires government to put in place infrastructural foundation to meet the first gas on time.
He stated that GNPC will work with Eni and Vitol as well as other State agencies to avoid any disruption to the project schedule.
“GNPC recognizes the expectations of Ghanaians for oil and gas resources to be managed in a manner that ensures maximum benefit to the country,” he said.
He announced that first oil is projected to come on-stream in the third quarter of 2017, while First Gas will follow in the second quarter of 2018.
With investment requirement at US$7.9 billion, Mr. Mould maintained that the project is by far the largest ever single investment in the country.
He stated that the Sankofa Project is one of the few projects around the world that has progressed in spite of the challenging oil and gas environment.
Describing the project as a game-changer in the development of Ghana’s gas industry, Mr. Mould stated that the project is Ghana’s first gas-to-power project, with the capacity to supply reliably gas for more than one-and-a-half decade.
The Sankofa field
The Sankofa field holds estimated proven hydrocarbon reserves of 204 million barrels of oil and 1.1 trillion standard cubic feet of natural gas.
ENI, the operator, holds a 47.2 percent participating interest in the block while Vitol holds 37.8 percent.
GNPC holds a 15 percent carried interest and 5 percent additional participating interest.
He stated that the project will produce natural gas up to 180 million standard cubic per day.