Vitol seeks MIGA $470m risk insurance for Sankofa gas fields in Ghana

Vitol Holding BV, a Netherlands company investing in the Sankofa Gas Field in Ghana has applied for a guarantee of about $470 million from the Multilateral Investment Guarantee Agency (MIGA), of the World Bank Group.

The company is seeking the guarantee for a period of up to 18 years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract, MIGA has announced.

MIGA says it may also provide coverage for non-shareholder loans from commercial lenders to be identified.

In summaries of proposed guarantees published March 26, 2015, MIGA says the summaries are, “provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature,” it says.

The Sankofa and Gye Nyame gas fields known as “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.

By Emmanuel K. Dogbevi