Eni Begins Oil & Gas Project In OCTP Block Ahead Of Schedule
Zacks Investment Research | May 22, 2017 08:53AM ET
Eni SpA (NYSE:E) recently announced that its Integrated Oil & Gas Development Project in the Offshore Cape Three Points (OCTP) block has come online three months ahead of schedule.
Eni completed the project in just two and a half years and reached another milestone, setting a record time to market.
Located about 60 kilometers away from Ghana’s Western Region coast, the Sankofa Main, Sankofa East and Gye-Nyame fields are included in the OCTP integrated oil & gas development. The fields are estimated to hold about 770 million barrels of oil equivalent (mboe) in place, comprising 500 million barrels of oil and 270 mboe of non-associated gas (about 40 billion cubic meters). The project includes development of gas fields whose production will be completely utilized by Ghana’s domestic market.
Production will be carried out using the “John Agyekum Kufuor” floating production, storage and offloading unit (FPSO), which will yield about 85,000 barrels of oil equivalent per day (boepd) via 18 underwater wells.
A 63 kilometer submarine pipeline will carry gas to Sanzule's Onshore Receiving Facilities (ORF), where it will be processed and transferred to Ghana’s national grid, delivering about 180 million standard cubic feet per day (mmscfd).
Eni, the operator of OCTP block, has a stake of 44.44%. Other stakeholders include Vitol and Ghana National Petroleum Corporation with 35.56% and 20%, respectively.
Eni’s presence in Ghana dates back to 2009, where it has been working through its subsidiary Eni Ghana. With the start-up of OCTP Integrated Oil & Gas Development Project the company has become one of Ghana’s main operators. Eni acquired a new exploration license, Cape Three Points Block 4, near the OCTP Block, in 2016. If successful, synergies with OCTP will facilitate a fast-tracked start-up. The drilling of the first exploration well is anticipated in 2018, in continuity with the drilling of Block OCTP wells. Additionally, Eni Ghana is exploring development opportunities in the renewable energies sector.
Investor confidence on Eni’s stock is reflected in its price chart. Shares of the company have gained 10.6% in the last three months, while the Zacks Investment Research
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