Eni starts production ahead of schedule

A new record for Eni in deep-field production: the Sankofa-Gye Nyame field, in the prolific OCTP block.

Eni says it has launched production from the Integrated Oil&Gas Development Project, in the Offshore Cape Three Points (OCTP) block, off Ghana’s western coast, in just two and a half years, and three months ahead of schedule, reaching another record time-to-market.

The OCTP integrated oil & gas development is made up of the Sankofa Main, Sankofa East and Gye-Nyame fields, which are located about 60 kilometers off Ghana’s Western Region coast.

A statement from the company’s Press Office and copied to the B&FT explained that the fields have about 770 million barrel of oil equivalent (mboe) in place, of which 500 million barrels of oil and 270 mboe of non-associated gas (about 40 billion cubic meters).

The project includes the development of gas fields whose production will be utilized entirely by Ghana’s domestic market.

Production will be carried out via the “John Agyekum Kufuor” floating production, storage and offloading unit (FPSO), which will produce up to 85,000 barrels of oil equivalent per day (boepd) through 18 underwater wells.

A 63-kilometer submarine pipeline will transport gas to Sanzule’s Onshore Receiving Facilities (ORF), where it will be processed and transmitted to Ghana’s national grid, supplying approximately 180 million standard cubic feet per day (mmscfd).

“Starting production only two and a half years after the approval of the Development Plan – Eni CEO Claudio Descalzi said – is an extraordinary result and a reason for great pride. It certifies our exploration skills and knowledge, as well as our field development vision, and it confirms the effectiveness of our new operational model, where Eni has a central role in project management, aimed at improving time-to-market.

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This is a result we are especially proud of, because it fits perfectly into the joint development vision that we have for Africa: we grow when the countries that host us also grow.

The launch of OCTP will provide gas to Ghana for over 15 years and the resulting electricity will give a real boost to the country’s development. All of this has only been possible thanks to the unwavering commitment of Ghanaian authorities and of our partners.”

Eni is operator of the OCTP block with a 44.44% stake, while Vitol holds 35.56% and Ghana National Petroleum Corporation (GNPC) 20%.

Eni has been present in Ghana since 2009 through its subsidiary Eni Ghana, and with the startup of OCTP Integrated Oil&Gas Development Project the Company has become one of Ghana’s main operators. In 2016, Eni obtained a new exploration license, Cape Three Points Block 4, adjacent to the OCTP Block.

If successful, synergies with OCTP will allow for a fast-tracked start-up. The drilling of the first exploration well is expected in 2018, in continuity with the drilling of Block OCTP wells. In addition, Eni Ghana is exploring development opportunities in the renewable energies sector. Eni Foundation also has an important social and health program in the Western Region, benefiting a population of over 300,000 people.

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The Executive Vice President for Sub-Sahara African Region Umberto Carrera told the President Nana Addo Dankwa Akufo-Addo at the flagstaff house during a courtesy call to discuss the status of the Sankofa-Gye Nyame oil fields, said it is expected to produce oil soon, and some key investments initiatives, which the company will be undertaking very soon.

Mr. Carrera used the opportunity to update the president on the progress of the project and assured the president of their commitment to ensure the project comes on stream quickly to support the energy sector of the country.

He also petitioned the president to look at the new directive by the ministry finance, which was introduced recently on tax refund. He stated that it is having a significant effect on the cost of the project, hence government should look at it again.

The President expressed his appreciation to the management of Eni Ghana and assured of them of his government support to project. He also mentioned to them that very soon the government will call upon them to have a meeting to discuss the gas price, which recently was in the news.

Present at the meeting was Managing Director Eni Ghana Giancarlo Ruiu, Local Content & Sustainability Manager Baluri Kassim Bukari and Stakeholder Engagement, Government Relations & Regulatory Affairs Coordinator Paul Twum-Barimah.

Source: thebftonline.com/Ghana

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