Gulf Oil and Gas accountACCOUNT

IFC Commits $517m to Support Ghana’s Sankofa Gas Project

Source: www.gulfoilandgas.com 12/15/2016, Location: Africa

IFC and MIGA, members of the World Bank Group, today announced the commitment of $517 million in debt and guarantees to support Ghana’s Sankofa Gas Project, an integrated offshore oil and natural gas project that will provide a source of reliable, affordable energy in the West African country. The project will fuel up to 1,000 megawatts of power generation, helping Ghana meet its growing energy needs and transition oil-fired power generation to a cleaner burning alternative.

The $7.7 billion Sankofa project will be developed by Vitol Ghana and Eni Ghana, in partnership with Ghana’s National Petroleum Corporation. IFC has committed a loan of $235 million to Vitol Ghana and arranging another $65 million in debt from the Managed Co-Lending Portfolio Program, a loan-syndications initiative that enables third-party investors to participate passively in IFC’s senior loan portfolio. The IFC financing is part of a $1.35 billion loan facility provided by commercial banks, including HSBC, Société Générale, ING, Standard Chartered Bank, UKEF, among others. MIGA has committed these commercial lenders with up to $217 million in political risk guarantees.

Ghana’s government has identified the Sankofa project as one of two transformational projects that will help the country achieve its commitments set in the Paris Agreement for climate mitigation. Once it starts to produce gas in early 2018, the project is expected to reduce carbon emissions in Ghana by an estimated 1.6 million metric tons annually as gas displaces heavy fuel oil—equivalent to taking 1.2 million cars off the road each year or planting 152 million trees. Sankofa is expected to generate $2.3 billion in revenues for Ghana’s government (per year) and provide a stable, long-term source of domestic gas that will solve Ghana’s chronic gas supply constraints.

Phlippe Le Houérou, IFC Executive Vice President and CEO, said, “Ghana will require significant power generation and infrastructure to meet the growing needs of its young and expanding population. This project demonstrates that private capital can be mobilized on a large scale to contribute to the country’s energy security. Developing Ghana’s domestic natural gas resources will help the country reduce carbon emissions and provide a clean source of power for generations.”

With today’s announcement, IFC and MIGA support brings World Bank Group financing for the Sankofa Gas Project to approximately $1.217 billion, building on a $700 million guarantee package from the World Bank announced last year that will help Ghana’s National Petroleum Corporation ensure timely payments for gas purchases and that has enabled the project to secure financing from its private sponsors.

MIGA’s guarantees will support Vitol Ghana’s commercial borrowing needs for the project and will be issued for up to 15 years, against the risks of Transfer Restriction (including Inconvertibility), Breach of Contract, Expropriation, and War and Civil Disturbance.

“MIGA’s political risk guarantee is a key part of the World Bank Groups’ long-term commitment to serve Ghana’s rising demand for energy. Moreover, the natural gas from the Sankofa Project underpins the nation’s transition to a low-carbon future.” said MIGA Executive Vice President and CEO Keiko Honda.

Ian Taylor, CEO of Vitol Group, said, “This is a transformational project for Ghana at an important time. The World Bank Group’s involvement, including financing from IFC and MIGA, is enabling Ghanaian gas to be used for the benefit of Ghana’s economic development. We are pleased and proud to be part of this project.”

For more information about related Opportunities and Key Players visit West Africa Projects

Financials and Investment News in Ghana >>

Uganda >>  2/26/2021 - Tullow Oil plc is pleased to provide an update on the redetermination of its Reserves Based Lending facility ("RBL").

Over the past few we...

United Kingdom >>  2/25/2021 - Subsea 7 S.A. announced that, on 24 February 2021, the Group entered into a $500 million five-year amortizing loan facility backed by a $400 million g...

United States >>  2/25/2021 - Cheniere Energy Partners, L.P. intends to offer, subject to market and other conditions, $1.0 billion principal amount of Senior Notes due 2031 (the "...
United States >>  2/25/2021 - Green Plains Inc. announced the pricing of its underwritten public offerings of $175.0 million of common stock at a price to the public of $23.00 per ...

United States >>  2/25/2021 - Kosmos Energy Ltd. announced the pricing of $450 million aggregate principal amount of its 7.500% senior notes due 2028. The offering was upsized by $...
Brazil >>  2/24/2021 - Petrobras, informs that its Board of Directors, at a meeting held, approved dividends to shareholders based on the 2020 annual results in the amount o...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Ghana Oil & Gas 1 >>  2 | 3 | 4 | 5 |

Oil & Gas Projects in Ghana >>

More News

Related Links

Gulf Oil and Gas
Copyright © 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.