Finance Minister Seth Terkper said the agreement will augment government’s bid to improve stable gas supply.
The loan facility was approved by the Board of Directors of the World Bank in 2015.
The agreement was signed with the Ghana National Petroleum Corporation (GNPC).
The Sankofa project is being sponsored by Italian oil firm ENI.
He added that it “has the capacity to supply 180m sft of gas, enough to generate 1,110 megawatts of power.”
He added: “It is a landmark project together with GE and TEN [and it] will contribute significantly to meet Ghana’s energy security needs.”
The Chief Executive Officer of GNPC Alex Mould said oil production from the Sankofa-Gye Nyame oil field is expected in the second quarter of 2017 while production of gas is expected to start in 2018.
The project will increase Ghana's electricity supply by 50%, according to the statement by GNPC released in February 2016.
“Sankofa is a game-changer in the development of Ghana’s gas industry," the statement. added.