World Bank backing for Ghana offshore project

ACCRA, December 16, 2016 – Ghana will receive World Bank financing for the offshore Sankofa oil and gas development, the group said on Thursday.

Through the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency, the World Bank will provide USD 517 million in debts and guarantees. The outlay raises the total financing for the Eni-led project to USD 1.217 billion. The Italian major holds a 44% stake in Sankofa.

As part of the arrangement, Eni’s partner in the endeavour, Vitol Ghana, will receive a USD 235-million IFC loan. The World Bank’s lending arm is also arranging an additional USD 65 million in debt. Vitol has a 35.6% stake in the project, while Ghana National Petroleum Corporation’s shareholding stands at 20%.

“Sankofa is expected to generate USD 2.3 billion in revenues for Ghana’s government per year and provide a stable, long-term source of domestic gas that will solve Ghana’s chronic gas supply constraints,” IFC said in a statement.

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