Italian oil major, Eni and Switzerland’s Vitol have signed an agreement with the National Oil Company of Ghana for the development of gas resources in the Offshore Cape Three Points (OCTP) block at the cost of $6 billion.

The new deal is part of Eni and Vitol’s commitment to helping Ghana develop and monetize its gas reserves. It covers the commercial and technical aspects of the development of the Sankofa and Gye Nyame gas fields from the OCPT Blocks located offshore Ghana.

Production is expected to begin in 2017 and the block will deliver up to 170 million cubic feet of gas per day for the next 20 years.

“This project promises to deliver up to 170 million cubic feet of gas per day for the next 20 years and put Ghana on its way to a future where one of the critical constraints to power generation (cheaper fuel) will be addressed,” a statement released by the Ghanaian government said.

Commenting on the deal, Ghana’s Minister of Energy and Petroleum Emmanuel Armah-Kofi Buah said “This negotiation has taught Ghana a lesson of the urgent need to strengthen the balance sheet of the country’s energy institutions to enable them to borrow on the international market.”

Once completed, the Ghanaian government will acquire a third floating production storage and offloading (FPSO) vessel.

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