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Offshore Cape Three Points (OCTP) Ghana
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Created on: 2022-02-08 12:31:59
Last update: 2022-02-08 00:00:00

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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

About Offshore Cape Three Points (OCTP)

The Offshore Cape Three Points (OCTP) is an integrated oil and gas project located in the Tano Basin, about 60 kilometres off the coast of Ghana. The project started in 2015 and involves the development of three gas fields: Sankofa Main, Sankofa East and Gye Nyame and two oil fields: Sankofa East Cenomanian and Sankofa East Campanian. The extraction of oil and gas will take place at depths ranging from 600 to 1,000 metres and the fields cover an area of 694 square kilometres. 

The offshore fields are estimated to hold approximately 1.5 trillion cubic feet of gas and approximately 500 million barrels of oil. These reserves are expected to meet the demands of Ghana's thermal power plants for the next 20 years. The existing offshore infrastructure comprises a 63 kilometre pipeline to the coast, undersea wells, gas processing units and a floating storage and offloading (FPSO) unit. 

Eni holds 44% of the project, which represents a majority stake, followed by Vitol with 36% and National Petroleum Corporation Ghana (NPCG) with 20%. In 2019, a gas discovery was made in the Cape Three Points Block 4 (CTP-4), which led to expansion plans for the project. The exploratory well has been drilled 12 km northwest of the production vessel from the existing Sankofa and Gye fields. Eni also announced the presence of a large oil deposit on the Eban-1x exploration prospect, located 50 kilometres from the coast and about 8 kilometres northwest of the Sankofa field. Production is estimated at 5,000 barrels of oil per day, similar to wells already producing at the Sankofa oilfield. The Eban-1x well is the second well drilled in Block 4 after the Akoma discovery and preliminary studies place the potential of the Eban-Akoma complex between 500 and 700 million barrels of oil.

Why this profile?

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

What must happen

In order to prevent impacts from worsening, banks and other financial institutions must refrain from financing the planned expansion of the project.

 

Impacts

Social and human rights impacts

Displacement and loss of livelihoods: The project requires the acquisition of approximately 257 acres of land used by communities for growing and harvesting crops. In July 2015, ENI estimated in their Final Environmental Impact Statement that around 213 acres of farmland could become inaccessible to 180 farmers of the Sanzule community.. Fishermen in the region have reported a severe decline in catch predominantly due to the artificial lighting system of vessels which attract fish to the oil and gas fields. They report that several fish species have become extinct in the region. The fishermen are also restricted by a no-fishing zone 500m around the premises of the project and their boats are seized by police if they enter this zone.

Complaints have also been made about several fish species going extinct. Most of the time, the nets used by fishermen are full of seaweed and no fish. This is a direct consequence of drilling in the region, which cuts seaweed. All these factors have led to considerable losses for fishermen, which in turn has consequences for their economic stability. 

Increased cost of living: With the construction of new power plants in the region, more people have migrated to the area looking for employment. This has led to a substantial increase in market prices and rent costs, thereby making life even harder for the communities that have lost their livelihoods.

Environmental and climate impacts

Air pollution: Construction activities lead to emissions in the form of nitrous oxide, carbon dioxide, sulphur dioxide and particulate matter. These emissions are particularly attributed to earth moving, excavation and transportation activities. Air pollution will also be a result of the operation of the FPSO, since it uses turbines and fuel for power generation. 

Impacts on marine ecology: This project  is predominantly set on the seabed. The pipelines, drilling activities and the operation of vessels have the potential to cause seawater turbidity and will also lead to seeping of contaminants such as zinc and arsenic into the seawater. This impacts marine life and in turn also impacts the livelihoods of fishermen.

Climate change: The OCTP contributes to an increase in greenhouse gas emissions.The emissions from the OCTP project originate from operations for well completions (power generation exhaust emissions); FPSO operations (power generation exhaust emissions and non-routine flaring); marine support vessels and helicopters (power generation exhaust emissions); and filling, offloading and operation of export tankers (exhaust and fugitive emissions).
Climate change is manifested in Ghana through: rising temperatures, declining rainfall totals and increased variability, rising sea levels and high incidence of weather extremes and disasters, 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 in the future. Climate forecast and climate change scenarios for the country predict a more severe and frequent pattern of droughts and flood events. Ghana is particularly vulnerable due to its reliance on sectors that are sensitive to these impacts, such as agriculture, forestry and energy production.

Other impacts

Decreasing value of Ghana’s energy sector: Most of Ghana's LNG and energy projects have been contracted without accurate estimates for future demand. Ghana's oil and gas sector is not stable as many factors threaten the future of the industry. Some major issues come from low non-power demand, the procurement of LNG without a long-term plan and also large financial exposure to Take-or-Pay contracts. As a consequence, there is an excess of supply that is underpriced and therefore leads to a rapid rise in debts. The excess in the supply of gas leads to a considerable drop in the price of gas. Aditionally, due to the  take-or-pay contracts, Ghana National Petroleum Corporation (GNPC) has to pay the private sector for supplies they cannot sell. This amounted to over 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
HSBC
csr policies
2020-04-23 00:00:00

Energy policy

2020-04-23 00:00:00 | HSBC
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
csr policies
2021-03-31 00:00:00

Policies on specific industrial sectors: Weapons, Coal-fired power generation, Coal mining, Oil and gas, Palm oil, lumber and pulp

[page 58 of Annual 2020 report]
2021-03-31 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
UK Export Finance
csr policies
2020-08-26 00:00:00

Policy and practice on Environmental, Social and Human Rights due diligence and monitoring

2020-08-26 00:00:00 | UKEF
csr policies
2020-11-05 00:00:00

Note on Human Rights and Social Risks and Impacts

2020-11-05 00:00:00 | UK Export Finance

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

Financiers

The project has a total cost of USD 7.3 billion. Financial close for the project was achieved in March 2017. Finance was provided by UK Export Finance, the International Finance Corporation (IFC), and commercial banks. The commercial debt financing was provided by Standard Chartered, HSBC, ING, Société Générale, Mizuho, MUFG, Natixis and Bank of China. Standard Chartered is financial advisor to the project.

There have been no confirmations on finance for the expansion of the project yet.

Related companies

Eni holds a majority stake in the project at 44%, followed by Vitol with 36% and National Petroleum Corporation Ghana with 20%.

In 2019, a gas discovery was made in block Cape Three Points Block 4 (CTP-4), which led to expansion plans for the project. CTP-4 is owned by a joint venture formed by ENI Ghana (42.5%), Vitol Upstream Ghana (34%), National Petroleum Corporation Ghana (10%), Woodfields Upstream (9.5%) and Explorco, a subsidiary of the National Petroleum Corporation Ghana (4%).

Project sponsor

ENI Italy show profile

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

Other companies

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

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

Brief history

The development plans for the Offshore Cape Three Points project were approved and construction began in 2015. Oil production at the facility began in 2017 and gas production began in 2018. In 2019, a discovery was made in Cape Three Points Block 4, which has now laid the foundation for an expansion of the project. The new exploratory well has been named Akoma-1X, and is expected to have a considerable gas reserve and other condensate resources. ENI, Vitol Upstream Ghana and National Petroleum Corporation Ghana have been joined by Explorco, and Woodfields Upstream in this new venture.

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