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Offshore Cape Three Points (OCTP) Ghana
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Created on: 2022-02-08 12:31:59
Last update: 2022-09-22 16:42:01

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Oil rigs near the west coast of Africa. Photo: jbdodane via Flickr (CC BY NC 2.0)
Sector Oil and Gas Extraction
Location
Status
Planning
Design
Agreement
Construction
Operation
Closure
Decommission
Website https://www.eni.com/en-IT/operations/ghana-octp.html
This project has been identified as an Equator Project

About Offshore Cape Three Points (OCTP)

Offshore Cape Three Points (OCTP) is an integrated oil and gas project located in the Tano Basin, about 60 kilometres off Ghana’s coast. OCTP is owned by majority stakeholder ENI, alongside Vitol and Ghana National Petroleum Corporation. Launched in 2015, the project encompasses the Sankofa Main, Sankofa East and Gye Nyame gas fields and the Sankofa East Cenomanian and Sankofa East Campanian oil fields. Production began with the delivery of gas from the Sankofa field in 2018. Infrastructure includes a 63-kilometre pipeline and a floating storage and offloading (FPSO) unit. Covering 694 square kilometres, the fields’ estimated 1.5 trillion cubic feet of gas and 500 million barrels of oil are projected to fuel Ghana's thermal power plants until the late 2030s. Discoveries of gas at Cape Three Points Block 4 in 2019 and oil at ENI’s Eban-1x exploration area in 2021 have triggered expansion plans.

Latest developments

ENI announces significant offshore oil discovery in Ghana

2021-07-06 00:00:00

OCTP expansion proposed following gas and condensate discovery

2019-05-11 00:00:00

Why this profile?

The Offshore Cape Three Points project has already impacted a large number of people in Ghana, including fishermen and Indigenous communities. These impacts include the displacement of communities, a decrease in food and livelihood resources for local fishermen, air pollution and seawater degradation. These impacts are expected to worsen if OCTP is expanded.

What must happen

In order to mitigate OCTP’s negative impacts, banks and other financial institutions must refrain from financing the planned expansion of this project.

Impacts

Impact on human rights and communities

Community displacement and the subsequent destruction of local economies took place as OCTP acquired approximately 257 acres of land for its operations. A July 2015 ENI Environmental Impact Statement states that “the households of Sanzule will be proportionally the most vulnerable to loss of livelihoods due to loss of access to 213 acres of farmland used by approximately 180 farmers”.

Meanwhile, the region’s fishermen have reported a severe decline in catch, describing how the lights from OCTP’s oil vessels draw fish towards them; the fishermen cannot follow due to a 500-metre, police-patrolled perimeter around these assets. Fishermen have also watched several species go extinct, while their nets fill up with the seaweed that is cut free during seabed drilling.

Living costs have risen as economic migrants arrive to take advantage of the new power plants. This rise has added extra financial pressure to locals who have lost their livelihoods.

Impact on climate

The exacerbation of global heating is an unavoidable outcome of Offshore Cape Three Points, due to the project’s greenhouse gas emissions. The sources of OCTP’s operational emissions include the generation of power for construction, non-routine gas flaring, the use of marine support vessels and helicopters, and the filling, offloading and operation of export tankers.

Global heating is driving climate change, which is raising Ghana’s temperatures, shrinking and disrupting its rainfall patterns, increasing extreme weather events and fueling related disasters in the country, such as floods. More than 30 years of climate records show that the prevailing climatic conditions in Ghana have severely deteriorated and are likely to worsen, with increasingly severe and frequent droughts and floods predicted. Ghana is particularly vulnerable because its economy relies upon agriculture, forestry and energy production, which are all sensitive to changes in the climate.

Impact on nature and environment

A significant rise in local air pollution has been a consequence of OCTP’s construction. Released pollutants include nitrous oxide, carbon dioxide, sulphur dioxide and particulate matter, which were particularly attributed to earth moving, excavation and transportation. The project will continue polluting the air to run its floating storage and offloading unit.

The deterioration of marine ecology near the project’s drills is harming local sea life and therefore fishermen. Along with the movement of its vessels, OCTP’s seabed drilling can cause seawater turbidity, which negatively impacts the food supplies, spawning beds and gill function of fish. It is also likely that contaminants such as zinc and arsenic are seeping into the water.

Other impacts

Disappointing economic returns caused by excessive supplies of Ghanaian gas are a concern. Most of Ghana's LNG and energy projects have been contracted without accurate estimates for future demand, which is under threat. Ghana may have to slash its gas prices, which will cause rapid debt accumulation. Due to its so-called Take-or-Pay arrangements, Ghana National Petroleum Corporation must pay the private sector for any supplies that are not sold. This cost the corporation USD 168 million in 2019.

Governance

Bank policies

The following bank investment policies apply to this project:
Bank of China
csr policies
2021-09-14 00:00:00

Environmental and social responsibilities

2021-09-14 00:00:00 | Bank of China
ING
csr policies
2021-02-15 00:00:00

Stance on climate

Date listed represents date as accessed on website
2021-02-15 00:00:00 | ING
csr policies
2021-06-30 00:00:00

Environmental and social risk framework

2021-06-30 00:00:00 | ING
Mitsubishi UFJ Financial Group (MUFG)
csr policies
2021-04-28 00:00:00

Revision of the MUFG Environmental and Social Policy Framework

2021-04-28 00:00:00 | MUFG
csr policies
2021-05-17 00:00:00

Carbon neutrality declaration

2021-05-17 00:00:00 | MUFG
Mizuho Financial Group
csr policies
2020-06-03 00:00:00

Environmental and social management policy for financing and investment activity

2020-06-03 00:00:00 | Mizuho Financial Group
Natixis
csr policies
2021-04-07 00:00:00

ESR sector policy oil & gas industry

2021-04-07 00:00:00 | Natixis
Société Générale
csr policies
2020-10-28 00:00:00

Climate strategy

2020-10-28 00:00:00 | Société Générale
csr policies
2021-11-30 00:00:00

Thermal power sector policy

2021-11-30 00:00:00 | Société Générale
csr policies
2021-11-30 00:00:00

Mining sector policy

2021-11-30 00:00:00 | Société Générale
Standard Chartered
csr policies
2021-04-29 00:00:00

Extractive industries position statement

2021-04-29 00:00:00 | Standard Chartered
csr policies
2021-10-28 00:00:00

Interim targets and methodology for pathway to net zero by 2050

2021-10-28 00:00:00 | Standard Chartered
csr policies
2021-10-28 00:00:00

Net zero approach

Methodological white paper
2021-10-28 00:00:00 | Standard Chartered
csr policies
2022-02-14 00:00:00

Prohibited activities

Date listed represents date as accessed on website
2022-02-14 00:00:00 | Standard Chartered

Applicable norms and standards

Equator Principles
IFC Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts
IFC Performance Standard 4: Community Health, Safety, and Security
IFC Performance Standard 5: Land Acquisition and Involuntary Resettlement
Principles for Responsible Banking (PRB)
The Paris Agreement
World Bank Safeguard Policies

Timeline

ENI announces significant offshore oil discovery in Ghana

2021-07-06 00:00:00

The Ghanaian division of Italian energy giant ENI has discovered a large oil deposit at its Eban well in CPT-Block 4, 50 kilometres off Ghana’s coast. ENI has been exploring Block 4 as it develops the Offshore Cape Three Points oil and gas project. Eban’s production is estimated at 5,000 barrels of oil per day. The announcement follows ENI’s discovery of gas and condensate at Block 4’s Akoma well in 2019. Preliminary studies estimate that the Eban-Akoma complex would yield approximately 600 million barrels of oil.

OCTP expansion proposed following gas and condensate discovery

2019-05-11 00:00:00

A considerable gas and condensate reserve has been discovered at the Offshore Cape Three Points (OCTP) project’s Akoma-1X exploratory well, near Ghana’s coast. The reserve’s estimated volume is 550-650 billion cubic feet of gas and 18-20 million barrels of condensate. This discovery is a result of the CPT-Block 4 venture, a joint enterprise between ENI Ghana, Vitol Upstream Tano, Ghana National Petroleum Corporation, Woodfields Upstream and Explorco. OCTP stakeholders now anticipate an expansion of the project.

OCTP project commences gas production

2018-07-04 00:00:00

Gas production has started at Ghana’s Offshore Cape Three Points project, sourced from the Sankofa gas field. Majority stakeholder ENI expects the field to produce 180 million cubic feet of gas every day for 15 years.

Oil production begins at OCTP

2017-05-22 00:00:00

Production at Ghana’s Offshore Cape Three Points has begun, 30 months after the approval of the oil and gas facility’s development plan. Majority stakeholder ENI says the project is three months ahead of schedule.

OCTP construction begins

2016-05-04 00:00:00

Ghana’s president John Mahama broke ground at the Offshore Cape Three Points project today, which is expected to begin producing an estimated 80,000 barrels of oil per day from 2017; gas production is planned from 2018 onwards.

Ghana gives green light to OCTP project

2015-01-27 00:00:00

The Italian energy giant ENI has signed an agreement with Ghana’s Minister of Petroleum to commence work on the Offshore Cape Three Points oil and gas project. ENI, which has operated in Ghana since 2009, has partnered with Vitol and Ghana National Petroleum Corporation. Extraction will take place at depths ranging from 600-1,000 metres across a 694-square-kilometre area.

Financiers

OCTP required USD 7.3 billion in financing to develop the Sankofa oil field and the Sankofa Main, Sankofa East and Gye Nyame gas fields. Finance was provided by UK Export Finance, the International Finance Corporation (IFC) and commercial banks. OCTP’s commercial debt financing was provided by Standard Chartered, HSBC, ING, Société Générale, Mizuho, MUFG, Natixis and Bank of China. Standard Chartered is financial advisor for the project and financial close was achieved in March 2017.

There has been no confirmation of finance for the project’s expansion yet.

Related companies

Italy’s ENI holds the majority stake in the project at 44%, followed by Switzerland’s Vitol with 36% and Ghana National Petroleum Corporation (GNPC) with 20%.

Following the discovery of further gas reserves at Cape Three Points Block 4 in 2019, the CTP-4 joint venture was formed. ENI Ghana holds the majority stake in the project at 42.5%, followed by Vitol Upstream Ghana with 34%, GNPC with 10%, Woodfields Upstream with 9.5% and the GNPC subsidiary Explorco with 4%.

Project sponsor

ENI Italy show profile

Oil and Gas Extraction
Eni holds a 44% stake in the project

Other companies

Explorco Ghana

National Petroleum Corporation Ghana Ghana

Vitol Switzerland show profile

Commodities Trading | Oil and Gas Extraction

Woodfields Upstream Ghana

News

| |
Type:
Year:
blog
external news
our news

Standard Chartered & COP27 in Egypt: Locking Africa out of a Just Transition

2022-11-09 | Natasha Ion – BankTrack
blog
external news
our news

Ghana: Investments in the Oil and Gas Sector Will Be Protected-Deputy Energy Minister to Oil and Gas Investors

2022-10-06 | GhanaToday
blog
external news
our news

Energy Minister sells Ghana’s oil and gas investment potential to investors in America

2022-09-23 | GhanaWeb
blog
external news
our news

At least $132 billion in finance for fossil fuels is locking Africa out of a Just Transition, shows new report

African countries kept in fossil fuel stranglehold by Overseas money
2022-03-03 | BankTrack, 350.org Africa, AFIEGO, Africa Coal Network, Alerte Congolaise pour l’Environnement et les Droits de l’Homme (ACEDH), Alliance for Empowering Rural Communities (AERC), Centre for Alternative Development (CAD), Environment Governance Institute (EGI), Friends of the Earth Ghana, Friends of the Earth Mozambique, Friends of the Earth Togo, Innovation for the Development and Protection of the Environment (IDPE), Laudato Si, Lumière Synergie pour le Développement (LSD), Milieudefensie, Oil Change International, Save Okavango (SOUL), Solidarité pour la Réflexion et Appui au Développement Communautaire (SORADEC), Synergie de Jeunes pour le Développement et les Droits Humains (SJDDH), Women Environmental Programme Nigeria, WoMin, Zimbabwe Environmental Law Association (ZELA)
blog
external news
our news

Ghana court to rule on Eni's oilfield combination dispute

2021-06-24
blog
external news
our news

ENI, Springfield unitisation: PIAC calls for independent reassessment of data from parties

2021-06-01
blog
external news
our news

Why is ghana’s gas sector losing money

2021-02-02
blog
external news
our news

Ghana likely to lose heavily if ENI, Springfield fail to unitise fields – IES

2020-05-20
blog
external news
our news

ENI’s FPSO John Agyekum Kufuor records three COVID-19 cases

2019-02-17
blog
external news
our news

Offshore Cape Three Points (OCTP) Integrated Oil and Gas Project

2017-07-13 | Offshore Technology

Documents

Type:
Year:
ngo documents
2020-11-01 00:00:00

A Just Energy Transition for Africa? Mapping the impacts of ECAs active in the energy sector in Ghana, Nigeria, Togo and Uganda

2020-11-01 00:00:00
company documents
2015-07-01 00:00:00

Ghana Offshore Cape Three Points oil block development Phase 2. Final Environmental Impact Statement.

2015-07-01 00:00:00 | Eni
ngo documents
2020-11-01 00:00:00

A Just Energy Transition for Africa?

Mapping the impacts of ECAs active in the energy sector in Ghana, Nigeria, Togo and Uganda
2020-11-01 00:00:00 | Abibiman Foundation Ghana, Friends of the Earth Ghana, Environmental Rights Action/ Friends of the Earth Nigeria, Les Amis de la Terre Togo, Environment Governance Institute, Uganda, Friends of the Earth Netherlands / Milieudefensie, Both ENDS
our publications
2022-03-03 00:00:00

Locked out of a Just Transition: fossil fuel financing in Africa

2022-03-03 00:00:00 | BankTrack, Milieudefensie & partners

Links

UK Export Finance’s OCTP profile (2017)

https://www.gov.uk/government/publications/category-a-project-supported-offshore-cape-three-points-project-ghana/offshore-cape-three-points-project-ghana

Offshore Technology’s OCTP profile (2017)

https://www.offshore-technology.com/projects/offshore-cape-three-points-octp-integrated-oil-and-gas-project
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