Ghana signs $6bn oil deal with Italy's ENI

Ghana signs $6bn oil deal with Italy's ENI

Monday, November 24, 2014 10:00 pm

Ghana on Monday accepted a bid from Italian oil major Eni to develop its offshore oil and gas resources, part of an effort to boost the country’s nascent energy sector, officials said.

Under the $6 billion (4.8 billion euro) “commercial production of oil and gas (is expected to start) by mid-2017 to augment the country’s current production capacity,” the energy ministry said in a statement.

The accord pertains specifically to the offshore field known as Cape Three Points.

Ghana, which began commercial oil production in late 2010 at its Jubilee field, has struggled to hit its production targets so far and has faced challenges in attracting foreign investment to fully develop its oil and gas resources.

The country currently produces around 100,000 barrels per day (bpd), far below nearby Nigeria, which churns out about two million, but enough to provide a significant revenue boost in the nation of some 25 million people.

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