Herbert Smith Freehills is advising Vitol, a leading energy and commodities company with a turnover of US$307 billion, on its US$7 billion oil and gas project in Ghana with ENI. The development of the pure gas fields contained in the project has been described by the World Bank as a ‘top priority’ for Ghana, as it will underpin the growth of a domestic thermal power sector and accelerate Ghana’s industrial development.This is the first major development of gas in Ghana and will enable the transformation of the economy. The Sankofa fields and Gye Nyame fields in the project contain enough gas to continuously supply Ghana’s thermal power sector until at least 2036. In addition to the energy source, Ghana will benefit from enhanced oil production, Ghana National Petroleum Corporation’s (GNPC) participation in the project, and royalties and taxes generated by the oil and gas production.
The Herbert Smith Freehills team is led by finance partner Martin Kavanagh and senior associate Rowena van de Grampel.
According to The President of Ghana, His Excellency President John Dramani Mahama, this is the largest single project Foreign Direct Investment inflow to Ghana since Independence.
The engineering design has been completed and the project has commenced. First oil and gas production will be phased through 2017 and early 2018 and oil production will reach around 80,000 boed in 2019.
Ghana’s Energy Minister, Kofi Buah, joined Ian Taylor, President and CEO of Vitol and Ciro Pagano EVP, ENI, last week to symbolically kick off activities marking the commencement of the OCTP development in Ghana, following the recent approval of the development plans by Ghana’s Ministry of Energy.
Norton Rose Fulbright is the legal adviser to Eni and GNPC is advised by Curtis Mallet-Prevost, Colt & Mosle.
Source: www.herbertsmithfreehills.com
