IFC has invested in the development of an offshore oil and gas project that will help diversify Ghana’s economy, meet domestic power demand, and generate revenue to support the country’s economic growth and development.
IFC will provide a loan of $100 million to Kosmos Energy, one of the key partners developing Ghana’s Jubilee field, located in deep water some 60 kilometers off the coast of Ghana.
The project will produce domestic crude oil, generating foreign exchange income for the country and substituting expenditures for oil imports. It is also expected to boost government revenues, providing much needed income against the background of the global economic downturn.
IFC’s loan is part of a $750 million debt package for U.S.-based Kosmos that IFC helped mobilize, primarily from commercial banks.
Earlier this year, IFC signed a $115 million loan agreement with British Tullow Oil, another key Jubilee partner, bringing IFC’s support for the project to $215 million. Kosmos and Tullow are independent oil and gas exploration and production companies.
“The Jubilee oil field is a landmark project for Ghana,” says Somit Varma, IFC’s Global Head for Oil, Gas, Mining, and Chemicals. “The project will provide a new and vital revenue source in a country that has one of the best governance track records in Sub-Saharan Africa.”
Environmental, Social Management
IFC is supporting Kosmos and Tullow in preparing environmental and social management plans for the project. The loans also are tied to other milestones such as management of biodiversity conservation, safehandling of waste, and emergency response procedures.
Next to oil, the Jubilee field is expected to produce gas to support about 400 megawatts of new power generation, equivalent to about 30 percent of Ghana’s annual power consumption.
The project also will stimulate the Ghanaian economy by purchasing goods and services locally. IFC is advising the companies on enhancing the project’s benefits for local communities and stakeholder engagement.
Ghana is the world's second-largest cocoa producer after neighboring Cote d’Ivoire and Africa's second-largest gold producer after South Africa. But its per capita income is still among the lowest in the world.
For more information contact:
Houtan Bassiri
Communications Officer
Johannesburg, South Africa
Tel: +27 11 731 3179
Email: hbassiri@ifc.org
