Italian oil giant Eni inks $6 billion deal

ACCRA: Ghana has accepted a bid from Italian oil major Eni to develop its offshore oil and gas resources, part of an effort to boost the west African nation’s nascent energy sector, officials said.
“The $6 billion...(deal) is expected to start commercial production of oil and gas by mid-2017 to augment the country’s current production capacity,” a statement from the Ministry of Energy and Petroleum resources said.
The accord pertains specifically to the offshore field known as Cape Three Points and key portions of the deal must still be approved by parliament.
Ghana, which began commercial oil production in late 2010 in its Jubilee field, has so far struggled to hit its production targets and has faced challenges in attracting foreign investment to fully develop its oil and gas resources.
Energy and Petroleum Minister Emmanuel Armah Kofi Buah conceded that “investment risk (was) a major hurdle in the negotiation.”
The country currently produces around 100,000 barrels per day (bpd) and had hoped to be at a far higher production level by the end of 2014.
The energy ministry described gas production as a key component of the Eni deal, promising that it would boost power supply.
“This project promises to deliver up to 170 million cubic feet of gas per day for the next two years and put Ghana on its way to a future where one of the critical constraints to power generation (cheaper fuel) will be addressed,” the statement said.