Vitol Seeks $470 mn Guarantee for Ghana Gas Project

Vitol Holding BV has applied for a Multilateral Investment Guarantee Agency (MIGA) guarantee of up to $470 million for development of Sankofa gas field in Ghana, MIGA, part of World Bank Group, said Monday.

The Dutch firm is seeking guarantee for a period of up to 18 years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.

MIGA said it may also provide coverage for non-shareholder loans from commercial lenders to be identified.

In January, Eni, Vitol and Ghana National Petroleum Corporation (GNPC) signed with government of Ghana an agreement to proceed with the Offshore Cape Three Points (OCTP) integrated oil and gas project.

Development of Sankofa fields and Gye Nyame field via OCTP Integrated Project will provide enough gas to power Ghana’s thermal power operations for more than 15 years, Vitol said in January.

The OCTP development comprises five fields, Sankofa East Cenomanian Oil, Sankofa East, Campanian Oil, Sankofa Main Gas, Sankofa East Gas, Gye Nyame Gas, and will access approximately 1.5 trillion cubic feet (tcf) of gas-in-place and around 500 million barrels of oil-in-place.

Eni, through its own subsidiary Eni Ghana, is block OCTP’s operator with a 47.22% stake. Vitol has a 37.77% stake and GNPC owns 15% interest.