Ghana, Tullow Oil got it covered

ACCRA, September 23, 2016 – Tullow Oil on Friday confirmed insurance cover for its work on the floating production, storage and offloading (PFSO) vessel offshore Ghana, the country which yesterday received a World Bank risk guarantee for Sankofa gas.

The World Bank is to provide Ghana with a USD 500 million partial risk guarantee it can resort to should it default on payments to Eni for gas from the offshore Sankofa field. Heading the USD 7.9-billion development of the field, the Italian major targets first gas by 2018. Its partners are Vitol and Ghana national Petroleum Corporation (GNPC).

According to GNPC Chief Executive Alex Mould, Ghana has an offtake agreement for 5.1 mcm (180 mcf) per day. The project, which has the potential to add 1 GW in power generation capacity, is part of Ghana’s effort to reduce its dependency on Nigerian gas imports.

On Friday, Tullow Oil announced that its Hull & Machinery insurance will cover costs associated with the FPSO Kwame Nkrumah, whose turret bearing failed earlier in 2016. Talks on insurance cover for the loss of production and revenue are ongoing.

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