Vitol Ghana is one of Vitol Group’s subsidiaries, and would be IFC’s borrower. Vitol Group is a privately-held, Swiss-based multinational energy and commodity trading company. Vitol Group ships more than 268 million tons of crude oil and products per year, with 2014 sales of $270 billion. Vitol Group’s main business is commodity trading (mainly petroleum products). More recently, Vitol Group has been taking participating interests in physical assets such as storage facilities, shipping, refineries, fertilizers and upstream oil & gas projects. Today, Vitol Group’s upstream assets include projects in West Africa, Eastern Europe, Central Asia, the Middle East and the United States.

Eni S.p.A. is an Italian multinational oil and gas company listed on the Milan and New York stock exchanges. The Italian government owns a 30% share in Eni S.p.A. In 2014, Eni produced 1.6 million barrels of oil per day and had net profit of €1,333 million. Eni is Africa’s biggest oil producer, producing about 1 million barrels of oil equivalent per day, which represents 56% of Eni’s global production. More than 12,400 people work for the company in the sub-Saharan African continent. Eni has also made the two largest discoveries in Africa of the past five years, in Mozambique’s Rovuma basin and in Congo Brazzaville with the Nene field.

Established in 1983, GNPC is the Ghanaian national oil company responsible for the exploration, development and commercialization of Ghana’s upstream petroleum resources.

The total estimated project cost is US$7.3 billion. The aggregate debt financing package for Vitol Ghana’s share of the total project cost will be up to US$1.2 billion. IFC’s proposed investment consists of up to $300 million in debt financing.

Additional World Bank Group support includes: 1) World Bank IDA Guarantees to support the gas development; and, 2) MIGA guarantee against the risks of transfer restriction, expropriation, and breach of contract.

235.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	235.0
Equity

* These investment figures are indicative

OCTP is located 55 to 60 km offshore the western coast of Ghana in water depths ranging from approximately 520 meters to 1014 meters.

Ghana faces a shortage of reasonably priced fuel for power generation. Most hydropower potential is already developed, so the bulk of Ghana's future power generation capacity will rely on natural gas. Interruption in gas availability in the recent past has necessitated purchases of up to US$50 million per month of light crude oil as fuel supply for power plants. In this context, exploiting OCTP's natural gas reserves will be a game changer for Ghana's energy sector. The Project will provide enough gas to fire up to 1,000 MW, representing ~25% of Ghana's total estimated power generation capacity in 2020. The OCTP Project will therefore substitute expensive, higher emission liquid fuels currently used by the power sector of Ghana by cleaner and cheaper gas resources. As such, the Project will directly contribute to enhancing the availability of natural gas as a source for relatively cleaner power generation in Ghana, at a time when gas production from other fields in Ghana is expected to start to decline. Additionally, the Project will generate direct and indirect jobs as well as substantial fiscal receipts to the Government of Ghana through royalties and income taxes.

Having considered the project’s benefits and assessed potential governance risks to these benefits, IFC has come to the view that the project should be supported.

Ghana has a transparency and governance framework associated with management of hydrocarbon revenues defined in the 2011 Petroleum Revenue Management Act (“PRMA”), which defines methods for collection and allocation of petroleum revenues. The PRMA establishes governance, oversight and disclosure requirements and defines the eligible categories of investment for petroleum revenues. In addition to PRMA, Ghana is a compliant country in the Extractives Industry Transparency Initiative and has been disclosing revenues from its extractives industries since 2011.

Additionally, IFC noted that Vitol has policies and procedures in place to ensure that it complies with all relevant national and international legislation and regulation. Moreover, Vitol has recently joined the “Recommendation 11” working group, which is facilitated by the government of Switzerland and whose members include major trading companies and NGOs. The objective of this working group is to come up with proposals and a code of conduct for corporate social responsibility and transparency of payment standards.

IFC additionalities to this project include a) the World Bank Group's involvement will give comfort to commercial banks and help mobilize the much needed private investment in Ghana's domestic oil and gas production; b) provide longer term debt tenor than what is currently available from commercial banks, which is crucial for the bankability of the OCTP Project; and, c) strengthen Vitol's Corporate Environmental and Social Management System and aligning it with IFC's Performance Standards.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Community Development Outlay ($) and (#)	Outlay ($)		Not Available	Not Available	Not Available
Domestic Purchases ($M) and (MT)	Current Purchases ($M)		Not Available	Not Available	Not Available
Organizational capacity and Management Programs(%)	Organizational capacity and Management Programs(%)		Not Available	Not Available	Not Available
Human Resources Policies and Procedures(%)	Human Resources Policies and Procedures(%)		Not Available	Not Available	Not Available
Occupational Health and Safety(%)	Occupational Health and Safety(%)		Not Available	Not Available	Not Available
Affected communities protection(%)	Affected communities protection(%)		Not Available	Not Available	Not Available
Compensation and resettlement(%)	Compensation and resettlement(%)		Not Available	Not Available	Not Available
Direct Employment (#) - Operations and Maintenance	Employment (#)		Not Available	Not Available	Not Available
Female Direct Employment (#) - Operations and Maintenance	Female Employment (#)		Not Available	Not Available	Not Available

This is a category A project according to the screening criteria in IDA’s Operational Policy 4.01 Environmental Assessment, IFC’s Environmental and Social Review Procedure, and MIGA’s Policy on Environmental and Social Sustainability (2013). Categorization has been assigned due to inherent sector risk largely linked to development drilling and operation phases, including the risk of a significant accidental event such as an explosion, oil spill or well blowout, worker health and safety, as well as to risks and impacts on community livelihood associated with economic displacement for the construction and operation of the pipeline landfall and shore-based facilities.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.