Vitol Sankofa

completed

The Sankofa and Gye Nyame gas fields (“Sankofa Gas Field”) and the Sankofa East oil field are located 55 to 60km 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 m to 1014 m. The OCTP project (“the project” will be developed in two phases 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”) holding 35.556% participating interest, and Ghana National Petroleum Corporation (GNPC) holding 20% participating carried interest.Phase-1 of the OCTP encompasses the development of the Sankofa oil field with first oil planned for 2017, and Phase-2 caters for the development of non-associated gas (NAG) in the Sankofa Gas Field, with the first gas production planned for 2018. Estimated discovered reserves are 1,079 BCF (236 MMboe) of NAG and 132 million barrels of oil. The OCTP project will be developed as an integrated two-phase project.Eni Ghana, as operator and on behalf of the partner group, has developed two Environmental, Social and Health Impact Assessment (“ESHIA”) studies, the findings of which constitute the two Environmental Impact Statements (EIS) required by the Ghana Environmental Protection Agency (“EPA”) for Phase 1 and Phase 2 developments. The draft final Ghana OCTP Block Phase-1 ESHIA was submitted to the EPA on 26th January 2015, the scoping report for OCTP Block Phase-2 ESHIA was submitted to EPA on December 30th while the draft for OCTP Block Phase-2 ESHIA was issued on 19th March 2015.The proposed World Bank Group support to the final project security and financing structure includes the following:1) World Bank (IDA) Guarantees to support Phase-2 investments of the Project;2) Vitol has applied for a MIGA guarantee against the risks of transfer restriction, expropriation, and breach of contract. MIGA may also provide coverage for non-shareholder loans from commercial lenders yet to be identified; and3) IFC loan as part of a debt financing package for Vitol.A joint World Bank Group Environmental and Social Review Summary will be published at a later date.