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Government of Ghana strikes offshore gas expansion deal to lift OCTP output by 2028

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Government of Ghana strikes offshore gas expansion deal to lift OCTP output by 2028

The Government of Ghana has signed a new upstream gas expansion agreement with Italian energy major Eni Ghana, commodity trader Vitol, and state-owned GNPC, in a strategic push to significantly raise production from the country’s flagship offshore asset.

The deal, structured as a term sheet framework, lays the groundwork for scaling up output from the Offshore Cape Three Points (OCTP) Project, a deepwater development that has become central to Ghana’s domestic gas supply ambitions.

Officials said the expansion could increase gas production by up to 350mn standard cubic feet per day by 2028, a step change that would materially reshape Ghana’s energy balance amid rising industrial demand and continued exposure to imported fuels.

At the core of the project is a package of infrastructure upgrades, including development of the Gye Nyame field, installation of a booster compression system, and enhancements to existing non-associated gas facilities linked to the OCTP floating production unit.

Energy policymakers framed the agreement as both a security and investment signal, arguing that higher domestic gas output would reduce exposure to volatile global LNG markets while improving reliability for power generation and industrial consumption.

The OCTP development has long been positioned as a cornerstone of Ghana’s upstream petroleum strategy, with the latest expansion marking a renewed effort to unlock additional reserves and extend the field’s productive life.

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The deal also carries wider fiscal implications, with policymakers expecting improved gas availability to ease pressure on power sector subsidies, stabilise electricity supply, and bolster investor confidence in Ghana’s upstream energy sector.

If executed on schedule, the expansion would rank among Ghana’s most significant energy infrastructure upgrades in nearly a decade, reinforcing ambitions to position the country as a regional gas hub within West Africa’s evolving energy landscape.

 

 

 

 

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