Ghana Government has completed negotiations with Eni and Vitol, approving exploration and production at the Sankofa project, located in the Cape Three Points offshore block.
The $6 billion project, operated by Italy’s Eni, is expected to start commercial oil and gas production by mid-2017, according to a statement by the African country’s energy ministry.
The next stage of the agreement will be the approval of Plan of Development (POD) and ratification of the approval by Parliament of Ghana.
Eni owns a 47.222% share in the block. Other partners are Vitol Upstream Ghana Limited, with a 37.778% share, and state company GNPC with a 15% share. GNPC has an option for an additional 5% share.
According to the energy ministry, the project promises to deliver up to 170 million cubic feet of gas per day for the next 2o years. The start of commercial gas production will also require a new FPSO unit.