ACCRA Dec 15 The World Bank Group said on
Thursday it would provide $517 million to Ghana in debt and
guarantees to support the $7.7 billion Sankofa oil and gas
project being developed by Italy's ENI and upstream
trader Vitol Ghana.
The finance adds to a $700 million guarantee package and
brings its total financing to around $1.217 billion for the
offshore project, whose gas component is set to open in 2018, a
The Bank's investment arm, the International Finance
Corporation (IFC), has committed a loan of $235 million to Vitol
Ghana and is arranging another $65 million in debt.
Guarantees by the Multilateral Investment Guarantee Agency,
another Bank institution, will support Vitol Ghana's commercial
borrowing needs for the project and will be issued for up to 15
"Sankofa is expected to generate $2.3 billion in revenues
for Ghana's government per year and provide a stable, long-term
source of domestic gas that will solve Ghana's chronic gas
supply constraints," an IFC statement said.
ENI holds a 44.4 percent stake in Sankofa, Vitol holds 35.6
percent while Ghana National Petroleum Corporation holds a
combined carried and participating interest of 20 percent.
Ghana first began pumping oil in 2010 at the offshore
Jubilee field operated by Tullow, a British company that
this August opened a second field called TEN.
Sankofa is expected to generate about 1,000 megawatts of
power to Ghana and combined with gas from two other new fields
could eliminate the need for Ghana to import gas from Nigeria
through the West African Gas Pipeline Company.
(Writing by Matthew Mpoke Bigg; Editing by James Dalgleish)