(Ecofin Agency) - Oil production from the Sankofa-Gye Nyame oil field, is expected to commence in Q2 of 2017 while production of gas is expected to begin in the Q2 of 2018.

The execution of the Offshore Cape Three Points (OCTP)/Sankofa-Gye Nyame Gas Project was about 54% complete as at the end of August 2016, while the Floating, Production and Storage and Offloading (FPSO) Vessel is almost 80% complete.

Alex Mould, the Chief Executive Officer of the Ghana National Petroleum Corporation (GNPC), declared this at the signing of the OCTP/Sankofa-Gye Nyame Gas Project Security Package in Accra, recently.

According to the Minister for Finance, Seth Terkper (photo), the project was Ghana’s first gas-to-power Project, with a capacity to supply 180 Mmscf of natural gas. This would generate up to 1,100 megawatts of power and, alongside the Jubilee and TEN Oil Fields, contribute immensely to Ghana’s energy security needs.

Henry Kerali, World Bank Country Director in Ghana, said gas supply from the project is expected to be much cleaner, stable and secure, and be a local source of fuel.

He added that the project would help in decreasing greenhouse gas emissions ensuing from power generation from crude oil.

The OCTP/Sankofa-Gye Nyame Oil field contains an estimated proven hydrocarbon reserve of 204 million barrels of oil and 1.1 Tscf of natural gas.

Under this project, GNPC and its partners, Vitol Upstream Ghana Limited and Eni Ghana are improving the oil finds as an integrated oil and gas project with shared facilities on FPSO. The suppliers, Vitol and Eni are to develop, produce and sell the gas to GNPC.

Eni Ghana operates the block, with a 47.2% participating interest, Vitol holds 37.8% interest, while GNPC holding a 15% carried interest and an extra 5% participating interest, Sweetcrude reports

Anita Fatunji