Offshore Cape Three Points Project GTR Paris Conference Standard Chartered Bank June 2017
Ghana What are the Key Words? 8 Banks USD1.35 bn Project Finance Domestic Gas to power over 1,100MW First UKEF DLF to Africa Largest FDI Long-tenor Finance Largest UKEF DLF Largest guarantee by the World Bank Ghana
Where is the OCTP Project located? OCTP Block is located about 60km off Ghana’s Western Region coast. It is made up of Sankofa Main, Sankofa East and Gye-Nyam fields
What does the OCTP Project look like?
Vitol Upstream Ghana Ltd Who are the Key Players? ENI Ghana (44%) GNPC (20%) Vitol Upstream Ghana Ltd (36%) “OCTP Project” UKEF USD400 mm IFC USD300 mm Commercial Banks (Partial MIGA Support) USD650 mm World Bank L/C Guarantee Oil Sales Gas Sales International Oil Offtake GNPC
What are the Key Challenges? Complex Structure Financing highly structured given the nature of the project Comprehensive security package # of Entities Project involved large number of counterparties from multi-jurisdictions Due Diligence Size / nature of project required thorough on credit & legal due diligence Credit, legal, technical, market, environment risks
What are the Key Takeaways? UKEF / World Bank / IFC First UKEF Direct Lending into Africa First European ECA support in this financing structure Largest guarantee provided by the World Bank UK Exports Supported GE Oil & Gas export contract worth USD 850mm Contract to support jobs in Aberdeen and Bristol in UK Power Ghana Cleaner and more reliable local energy supply to Ghana’s power sector Additional revenue stream to the government, with estimated USD2.3 bn in revenues Source: World Bank; Standard Chartered
Panel Discussion Panellists Yoshi Ichikawa* Standard Chartered Bank Executive Director Project & Export Finance Richard Simon-Lewis UK Export Finance Head of Civil, Infrastructure & Energy Business Guto Davies GE Capital Managing Director Sales & Project Finance British Exporter Association Chairman Industry Committee John Dewar Milbank Partner * Moderator
Q & A