Eni, Ghana Ink $6 bn Gas Deal

Ghanaian government and Eni have signed a $6 billion deal which allows the Italian energy major to develop oil and gas resources in the Offshore Cape Three Points block.

The project is expected to start commercial production of oil and gas by mid-2017, the government said in a statement Monday adding that it promises to deliver up to 170 million cubic feet of gas per day for the next 20 years.

The next stage of the agreement will be the approval of Plan of Development (POD) and ratification of the approval by Parliament.

The start of commercial gas production will also require the construction of a 3rd FPSO unit to produce at maximum 170 million cubic feet of gas in addition to the 120 million cubic feet from the Jubilee Fields and 50 million cubic feet from the Tweneboah Enyeara and Ntomme (TEN) projects.

ENI and Vitol will focus on domestic gas markets, the government stated.