Ghana receives 500 mln USD letter of Credit

October 4, 2016 8:45 PM

ghanaACCRA, Oct. 4 (Xinhua) — HSBC and Standard Chartered Bank issued on Tuesday a Stand-by Letter of Credit (LOC) worth 500 million U.S. Dollars to support efforts aimed at boosting electricity production and supply in Ghana, a release received here has said Tuesday.
The LOC issued in London, Britain will guarantee payment obligations by state owned Ghana National Petroleum Corporation, to energy companies Vitol and ENI related for the supply of gas to Ghana from the the offshore Sankofa field.
The LOC is aimed at ensuring reliable gas supply from the field which is expected to support the production of at least 1,100 megawatts of power and will boost Ghana’s sustainable power supply.

The Sankofa field which was discovered in September 2009 is being developed with a capital of 7.0 billion U.S. dollars and is expected to start production next August delivering about 180 million standard cubic feet of gas per day and 30,000 barrels per day of oil.
The Sankofa integrated oil and gas project will be Ghana’s third operating field in quick succession after the maiden commercial field, Jubilee commenced production in December 2010.

The release said the total tenor for this transaction is up to 17 years including two years of commitment prior to production. HSBC France is agent on the deal, and co-issued 250 million dollars alongside Standard Chartered Bank.

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