In January 2015, Eni, Vitol and Ghana National Petroleum Corporation (GNPC) signed an agreement with the national authorities for the development of an integrated oil and gas project guaranteeing the necessary energy to speed up the economic growth of the country. The Offshore Cape Three Point (OCTP) field lies in deep water about sixty kilometres off the west coast of Ghana, and consists of non-associated oil and gas with a production of about 41 billion cubic metres of gas and 500 million barrels of oil on site. The first oil is forecast for 2017, the first gas for 2018 and the peak production, expected for 2019, will be 80 thousand barrels of oil per day. The integrated oil and gas OCTP project will enable the country to obtain a competitive price for gas on the one hand, and, on the other, supply Ghana’s thermoelectric generating system from the gas fields from 2018 until 2036. Moreover, by taking part in the project, the country will benefit from further oil production. As of 2017 there will be more royalties, taxes, more employment and it will guarantee greater development of the local areas. During 2015 the sales agreement for gas and security agreements with the authorities in Ghana were signed guaranteeing gas sales including those issued by the World Bank.
FOCUS: The OCTP Project in Ghana
Given the enormous availability of natural gas, one country in which the development of national gas resources provides an opportunity to improve access to energy is Ghana. In fact, Eni has launched the integrated Oil and Gas Offshore Cape Three Points (OCTP) Project in Ghana, which will provide cleaner, more secure and continuous energy supplies. In 2016 work began on the construction of the onshore gas collection plant of the joint venture between Eni, Vitol and the Ghana National Petroleum Corporation OCTP project, of which Eni is the operator. The project foresees the production of around 45,000 barrels of oil per day for the international and the production of 180 MMSCF/day, for about 17 years, of non-associated gas, which will be sent to the Ghanaian national network. The project, which will involve a total investment of $7.9 billion, is the largest foreign investment in Ghana. The supply will generate about 1,000 megawatts of power, enough to convert to gas 50% of the electricity production in the country. Given the strategic importance for the country’s economic development, the World Bank, through the IDA’s International Development Assistance Agency and the International Bank for Reconstruction and Development (IBRD), has provided $700 million in guarantees to support the project and the government. These guarantees include: $500 million from the IDA to secure payments by the state-owned GNCP for the purchase of gas sold, plus a $200 million guarantee from the IBRD to cover the repayment of the loan.
The documentation regarding Environmental, Social, Health Impact Assessment and Management Plans and the Action Plans is available for download from the IFC Project Information Portal and by putting SANKOFA in the search bar. The documents available include:
- Livelihood Restoration Plan
- Environmental Social Health Impact Assessment (Technical & Non-Technical Summary)
- Stakeholder Engagement Plan
- Environmental Social Action Plans
Eni’s flag flies alongside Ghana’s both in the operational fields and in the areas where there has been socio-economic development for the local communities, with particular attention to energy access. For us Local Content means added value brought to the socio-economic fabric of the host country, through the participation of the local people and enterprises in the industrial activities and the promotion of their development, the transmission of skills and know-how and the enhancement of the country’s heritage as well as the communities’ capabilities. The list of suppliers for goods and services available on the Ghanaian market are made up of local companies and where the local market is lacking, as far as highly complex and specialised contracts are concerned, Eni applies a scoring model in the tenders that include criteria for a commitment of the maximisation of Local Content. The rate of local participation increased from 29% in 2012 to 50% in 2014. In order to support the families affected by operations a Livelihood Restoration Plan has been developed for execution during the 2016-2020 period. The goal is to sustainably restore and improve living conditions of affected households through project options appropriate to the socio-economic context. The Livelihood Restoration Planentails the execution of sustainable combinations mix of rural interventions in agriculture, livestock breeding, fishing and micro-entrepreneurship. Transitional support - food aid and health assistance provided to the affected households is expected to have a duration of less than one year, i.e. until livelihood interventions reach full development stage thus generating benefits for households replacing the food supply of today meant to avoid community impoverishment during the transition period.
In line with the local health ministry’s strategies, in 2012, Eni Foundation started a project in Ghana to improve the management of prevention, assistance and emergency services. By encouraging the spread of knowledge regarding the best hygiene and health practices, the initiative aims to reduce the mother-child mortality rate. The areas concerned are the coastal districts of Jomoro and Ellembele and Ahanta West, where there are about 300 thousand inhabitants spread out mainly in isolated rural areas, 80,000 of which are children below ten years of age and about 70 thousand of which are women of child-bearing age.
Eni has always considered high priority the transfer of know-how in host countries, along with support for the development of local content and social investments. Eni has sustained the Ministry of Health and the Ghanaian Health Service to equip themselves with the technical and managerial capabilities to build up a system of strategic assessment of the impact on health also by training professional people and laying the basis for the necessary policy on the matter in the Oil & Gas sector.
Eni has implemented three training projects aiming at the development and enhancement of managerial, technical and professional knowledge and skills.
Eni Ghana continues to educate and train young professional Ghanaians aiming at the development of technical and professional knowledge and skills. 50 Ghanaians have been involved in this project to date, in particular in the areas described below:
- a technical training programme in the O&G sector: “Drilling and Completion supervisor”
- Training activities in upstream production area, basic knowledge on across-the-board issues (HSE, economics, logistics)
- a university I° level Master’s degree at Pisa University on the management of HSEQ (Health, Safety, Environment and Quality)
- Specialised degree in Petroleum Engineering and Petroleum Geo-science at Turin Polytechnic University and the University of Perugia.
The OCTP project will be developed in conformity with the highest environmental requisites, and in line with Eni’s internal procedures, local legislation and in particular conforming to the requisites defined in the “Performance Standards on Environmental and Social Sustainability” of the International Finance Corporation (IFC) which is part of the World Bank Group. Eni Ghana as an operator of the OCTP project aims to avoid and minimise the environmental impact (e.g. zero routine flaring, produced water re-injection), through action plans laid out to manage the most sensitive natural elements such as birdlife and sea turtles.
Furthermore, the non-associated gas which will be produced will benefit the environment, given that it is intended to substitute light oil, which is currently used in the plants for electricity and which will in the future supply the new electricity power stations, increasing the country’s electricity generating capacity while safeguarding the environment.
- the integrated Offshore Cape Three Point oil and gas project (OCTP)
- the Livelihood Restoration Plan applied in the country to support local families and encourage socio-economic development
- the project launched by the Eni Foundation to improve access to healthcare services and the protection of mother and infant health
- activities with the Ministry of Health and the Ghana Health Service to promote training
- the environmental requisites that Eni respects in the country
- the implementation of EITI criteria in Ghana
- interviews with the heads of the Eni Foundation, the Livelihoods Restoration Plan in English, downloadable in the PDF format