President Nana Addo Dankwa Akufo-Addo has turned the valves on Ghana’s third Floating Production Storage and Offloading (FPSO) vessel, FPSO John Agyekum Kufuor, to signify the start of formal commercial production on the Sankofa-Gye Nyame oil and gas field.
Italy’s ENI and Swiss oil trader Vitol hold the major stakes in the project, while Ghana National Petroleum Corporation (GNPC) has combined carried and participating interest of 20 percent in the field situated approximately 57 km off offshore Cape Three Points.
The scheme passed a key milestone in January 2015, when the government signed agreements with Eni and Vitol to develop the Sankofa-Gye Nyame fields.
The FPSO, which is 300 metres (985ft) long, has a storage capacity of 1.7 million barrels, a double hull to reduce environmental risks and a treatment capacity of 58,000 barrels of oil per day and condensates.
According to the managers of the project, the field is starting production three months ahead of scheduled commencement date of August 2017. The OCTP integrated oil & gas development is made up of the Sankofa Main, Sankofa East, and Gye-Nyame fields.
Speaking to the B&FT on Wednesday, ENI CEO Claudio Descalzi said: “Starting production only two and a half years after the approval of the Development Plan 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.
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.”
The field also has about 770 million barrels of oil equivalent (mboe) in place, of which 500 million barrels of oil and 270 mboe of non-associated gas.
Energy experts have projected that the project could raise Ghana’s oil output to around 200,000 barrels per day, given the output from TEN and Jubilee oil and gas fields. Gas production from all three fields could also hit the 300 million standard cubic feet mark.
But due to the unavailability of the onshore-integrated gas reception facility (ORF), on which work is ongoing, the associated gas and condensate will be reinjected until the ORF facility is ready.
The ORF at Sanzule has the capacity to handle 180 mscf/d. The first gas production is expected in the first quarter of 2018. The ORF will also be hooked onto Ghana Gas’ 111-km lines.