Vitol Sankofa

active

This ESRS has been revised to reflect an update on the public review and public hearing, as part of ESHIA process, the issuance of the environmental permits and the disclosure of the final ESHIA. There are no material changes to the environmental or social risks and/or impacts of the project.The Sankofa and Gye Nyame gas fields (“Sankofa Gas Field”) and the Sankofa East oil field are located 55 to 60 km offshore in the Western Region of Ghana. The fields are part of the Offshore Cape Three Points (OCTP) block. Water depths in the block range from approximately 520 meters to 1014 meters. The OCTP project (“the project”) will be developed by a joint venture (JV), composed of Eni Ghana Exploration and Production Limited (“Eni Ghana”), the operator of the block holding 44.444% participating interest, Vitol Upstream Ghana Limited (“Vitol Ghana”) holding 35.556% participating interest, and Ghana National Petroleum Corporation (GNPC) holding 20% (15% carried and 5% paid) participating carried interest.The project encompasses (i) the development of the Sankofa East oil field, with first oil production planned for 2017; and (ii) the development of non-associated gas in the Sankofa and Gye Nyame Gas Fields, with first gas production planned for 2018. Estimated discovered volumes in place are 481 million barrels of oil and 1.45 Tcf of non-associated gas. The OCTP project will be developed as an integrated oil and gas development project, utilizing a shared, new conversion, double-hulled floating production, storage and offloading unit (FPSO), and will consist of:- 14 (fourteen) wells for the oil exploitation: 8 (eight) oil production wells, 3 (three) water reinjection wells, and 3 (three) associated gas injection wells. Oil from the wells will be transferred to the FPSO via flexible risers. The estimated peak oil production will be 45,000 barrels per day (“bpd”).- 5 (five) wells for the non-associated gas exploitation; subsea umbilicals, risers and flowlines from the five non-associated gas wells to the FPSO; 63 km long subsea pipeline from FPSO to shore; 1.5 km long onshore pipeline from shore approach to an onshore receiving facility (ORF) at Sanzule, including compression station, accommodation camp, warehouse, workshop, firefighting station, helipad, and medical facility; and a tie-in to the existing Ghana National Gas Company (GNGC) sales gas 20-inch pipeline. The production plateau is expected in 2018. Sanzule is located about 10 km east of the GNGC gas plant near the town of Atuabo on Ghana’s west coast.Existing onshore logistics base located in Takoradi will be used for the project. This onshore base has been built anew under Eni Ghana’ supervision and will provide warehousing, office and supply support to the project. The majority of onshore logistics support infrastructure in Takoradi is already in place. The total cost of the project is estimated at approximately $8 billion (current values). The proposed World Bank Group support to the final project security and financing structure includes the following:1) World Bank (IDA) Guarantees to support the gas development;2) MIGA guarantee against the risks of transfer restriction, war and civil disturbance, expropriation, and breach of contract on behalf of commercial lenders (yet to be identified) to cover non-shareholder loans to Vitol Ghana in support of the gas field development; and3) IFC loan as part of a debt financing package for Vitol.