[ 2016-09-26 ]

GNPC,PURC to work on refinancing Sankofa field loans
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.

Source - citibsinessnews.com

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