UK Export Finance (UKEF) is to issue $400m in funding to support GE Oil & Gas's contract for Ghana's Offshore Cape Three Points Project (OCTP).
The $850m contract will help create jobs in Aberdeen and Bristol. This funding is claimed to be the first of its kind by a European agency and UKEF’s first direct loan in an African project.
UK Trade and Investment Minister Greg Hands said: “The Offshore Cape Three Points Project will greatly improve Ghana’s energy security.
“Thanks to the UK Government’s support, via UK Export Finance, and our global leadership in oil and gas, UK companies are ideally placed to support Ghana’s future development and seize the huge export potential that brings.”
Headquartered in UK, GE Oil & Gas will deliver subsea production systems to this project.
The planned oil and gas fields will be developed 60km from the western coast of Ghana. The first gas is expected next year, which will be used by domestic thermal power plants for more than 20 years.
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GE Oil & Gas president and CEO Lorenzo Simonelli said: “This contract represents GE’s ability to invest to build local partnership, resource and infrastructure capabilities, and will utilise engineering and manufacturing expertise from the UK, across the supply chain.
“Export credit agency financing is an important source of support for our customers, and the MoU signed with UKEF in 2015 has helped to support this success.”
The OCTP project is expected to generate additional 1,100MW of power in Ghana, enabling the country to substitute fuel oil with more eco-friendly gas.
Funding for this contract was based on a MoU signed between GE and UKEF in 2015. Under this, GE committed to continue its investments in the UK against UKEF’s support in its operations.
OCTP requires around $7.9bn investment over its life, making it one of the largest foreign direct investment in Ghana’s history.
UKEF’s support is a part of the larger $1.35bn package received from the consortium of International Finance Corporation, Multilateral Investment Guarantee Agency of the World Bank Group and multiple commercial banks.