ACCRA Oct 4 HSBC and Standard
Chartered issued a $500 million letter of credit to
Ghana on Tuesday to guarantee the national oil company's
payments for gas extracted from the offshore Sankofa field.
The companies said in a statement the deal with Ghana
National Petroleum Corporation (GNPC) should provide security
over gas expected to flow in 2018 from the $7.9 billion offshore
oil and gas field being developed by Italy's ENI.
"The facility will guarantee GNPC's payment obligations to
energy companies Vitol and ENI related to the sale of gas to be
extracted from the Sankofa field ... and piped onshore for both
power generation and industrial and domestic consumption," the
The World Bank also signed a $500 million deal with GNPC
last month in the form of a partial risk guarantee for use if
the country defaults on payments for Sankofa gas.
ENI holds a 44.4 percent stake in Sankofa, upstream trader
Vitol holds 35.6 percent while GNPC holds a combined
carried and participating interest of 20 percent. The World Bank
will loan $200 million to the Sankofa partners.
HSBC France acted as agent on the deal and co-issued $250
million with Standard Chartered. The deal's tenor is up to 17
years, the statement said.
(Writing by Matthew Mpoke Bigg; editing by David Evans)