Ghana's government has given Italian energy firm Eni the final green light to develop gas resources in the Offshore Cape Three Points (OCTP) block, expected to begin production in 2017, it said on Monday.

The government, hoping to boost oil and gas production, said in a statement that it also planned to acquire a third floating production storage and offloading (FPSO) vessel, to be used for the $6 billion offshore project which must now be approved by Ghana's parliament.

"This project promises to deliver up to 170 million cubic feet of gas per day for the next 20 years and put Ghana on its way to a future where one of the critical constraints to power generation (cheaper fuel) will be addressed," it said. A senior official at Ghana National Petroleum Corporation (GNPC), a partner in the project, said the $6 billion total covers all costs leading to production of oil and gas, including the initial cost of the FPSO, which will be leased. Eni operates the OCTP block, in partnership with commodities trader Vitol and GNPC.

Selected by SPTEC Advisory from Reuters Africa, November 24