Ghana has initiated a new phase of upstream gas development after concluding a term sheet with Eni Ghana Exploration & Production (Eni Ghana E&P), Vitol Upstream Ghana Limited and the Ghana National Petroleum Corporation (GNPC) to advance investment under the Offshore Cape Three Points (OCTP) project.
The agreement, signed by Minister for Energy and Green Transition, Samuel Abu Jinapor, alongside Finance Minister Dr. Cassiel Ato Forson, outlines the “commercial principles” to underpin the OCTP Non-Associated Gas (NAG) Upgrade Project, a development expected to materially increase gas output and reinforce energy security.
Under the proposed upgrade, gas production from the OCTP block could rise by up to 350 million standard cubic feet per day (MMscfd) by 2028, driven by the development of the Gye Nyame field and the installation of a “booster compressor” and a new non-associated gas system on the project’s floating production storage and offloading (FPSO) vessel.
Government officials described the signing as a critical milestone that builds on the Memorandum of Intent agreed in September 2025, reflecting a continued commitment to “strategic investments” in the upstream petroleum sector and long-term gas infrastructure expansion.
The OCTP project remains central to Ghana’s energy mix, supplying a substantial portion of natural gas for thermal power generation. Authorities say the planned expansion will “enhance energy security” by increasing domestic supply, reducing dependence on imported fuels, and supporting rising demand from industry and households.
Abu Jinapor indicated that the agreement sends a strong signal to international investors that Ghana’s upstream sector remains “open, stable and ready for investment,” with policy consistency and contractual clarity positioned as key pillars for attracting capital.
The framework is also expected to deepen collaboration between the state and private operators, particularly in advancing technically complex offshore developments, while ensuring that resource extraction aligns with national development priorities.
Scaling up non-associated gas production is critical for Ghana’s medium-term power stability, as it provides a more reliable feedstock compared to associated gas tied to oil production cycles.
The government maintains that the project will be executed within a “predictable and competitive environment,” balancing investor returns with national interest considerations, as Ghana seeks to consolidate its position as a regional energy hub.
