A leading commodities trader Vitol along with Italian energy group ENI is set to develop a $7bn offshore oil and gas project in Ghana.

Oil

Called Offshore Cap Three Point, the project will generate gas, which would be used for the country’s power plants, as well as crude oil meant for sale to overseas markets.

Offshore Cap Three Point is considered to be the largest project supported by overseas investment in Ghana, reports Financial Times.

The two companies received final approval for the project from the Government of Ghana on Tuesday.

Oil is expected to be produced from the project’s five fields in 2017 and gas production is likely to commence in 2018.

In 2014, Vitol made an announcement of acquiring an oil refinery and a petrol station business in Australia from Royal Dutch Shell for $2.6bn.

Vitol CEO Ian Taylor said: "This is a transformational project for Ghana. Vitol has been supplying energy to Ghana for over 25 years and we are delighted to be able to contribute to the development of Ghana’s economy through a major domestic energy solution."

Following the discovery of Jubilee oilfield in 2007, Ghana’s energy sector has seen a major expansion.

Although the country’s output has surged, the country is struggling to attract foreign investment.

Image: The gas generated from the Offshore Cap Three Point oil and gas project would be used for the country’s power plants. Photo: Courteys of njaj/FreeDigitalPhotos.net.