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RADP / Pulse Ghana  >  news  >  business

Seals $6bn Oil Exploration Deal With Italy's ENI

David Mawuli

Italian oil and gas exploration firm ENI/Vitol will deliver up to 170 million cubic feet of gas per day for the next two years according to a new deal signed with the Energy and Petroleum Ministry.

The government of Ghana and ENI Exploration has sealed a $6 billion deal to allow the Italy firm start oil and gas exploration at the Offshore Cape Three Points block in the Western region.

Under the deal, ENI will also deploy a third floating production storage and offloading (FPSO) vessel that will help boost oil production in the West African country.

According to starfmonline.com, a statement from the Energy Ministry states that the deal is subject to parliamentary approval and the block should start producing oil and gas by mid-2017.

The government negotiating team was made up of the ministers of Energy and Petroleum, Finance, and the Ghana National Petroleum Corporation.

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“This negotiation has thought Ghana lessons of the urgent need to strengthen the balance sheet of the country’s energy institution to enable them borrow on the international market. It will also reduce the investment risk that has been a major hurdle in this negotiation,” both ministers expressed their relief at the conclusion of the negotiations.

The negotiations will put Ghana on the path of addressing one of the critical constraints to power generation which is clean fuel source.

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David Mawuli David Mawuli Award-winning showbiz journalist, music critic and netizen. He lives for gossips, controversies and pop culture. Follow him on FB, Twitter & IG @davidmawuli.

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