UK Export Finance to back GE in Ghana

LONDON, January 17, 2017 – UK Export Finance (UKEF), the country’s credit export agency, on Monday inked a direct loan agreement for an oil and gas venture in Africa.

The first-such move on the part of a European government, UKEF will provide a direct loan of USD 310 million to GE Oil & Gas for its work associated with the Offshore Cape Three Points (OCTP) venture.

In addition to that, UKEF will provide USD 90 million in buyer credit. The funds, USD 400 million in total, will be directed towards supplying equipment to the OCTP project.

“The Offshore Cape Three Points Project will greatly improve Ghana’s energy security,” Minister of Trade and Investment Greg Hands said in comments on the deal.

GE Oil & Gas’ President and Chief Executive Lorenzo Simonelli called the financing structure was testament to the company’s ability “to invest to build local partnership[s],” vowing it would “utilise engineering and manufacturing expertise from the UK across the supply chain.”

Headed by Eni Ghana Exploration and Production, the offshore endeavour seeks to unlock some 41 bcm (1.4 tcf) of non-associated gas and 500 million barrels of oil. First oil is planned for this year, followed by first gas in 2018. Eni’s partners in the venture are Vitol Ghana Upstream and Ghana National Petroleum Corporation.

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