Source Pravda.Ru

Ghana And Devon Agreement

The Government of Ghana GNPC and Devon/Encana signed an agreement, which allows production exploitation from the Tano Fields of the gas deposits that will be transported on shore to support production of electricity Under the Agreement commercial supply of gas enough to produce 125 MW of electricity is targeted to commence early in 2003. Further volumes of gas to enable the production of an additional 125 MW of electricity are expected to come on-stream by the latter part of next year, 2003. This agreement enables investors exclusively fund the production exploitation of the Tano Oilfields, at a cost in excess of US$100 million. The GNPC, on behalf of Government, however will have a 20% share of net production proceeds of the value of all extracted oil and gas from the Tano Fields. The GNPC willl also have the right to a further 10% of the net production proceeds after initial 5 years. The Tano reservoir development will require the installation of two platforms, North Tano in approximately 170 feet of water and 18 kilometers offshore and South Tano in approximately 400 feet of water and 38 kilometers offshore.

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