The government has withdrawn several directives that mandated a compulsory unitisation between Springfield Exploration and Production Limited and Eni Ghana Exploration and Production Limited.
The directives, which were issued on April 9, October 14, and November 6, 2020, concerned the Afina-1X Discovery and the Sankofa Cenomanian Oil Field
A statement issued by the Ministry of Energy and Green Transitions stated that the decision follows a thorough review of the Arbitral Award referenced SCC Arbitration U2021/114 (ENI & Vitol v. Ghana & GNPC) dated 8th July 2024, and the legal opinion provided by the Attorney General and Minister of Justice.
According to the statement, consultations with relevant stakeholders also informed the decision.
“The Ministry acknowledged the Tribunal’s findings that while the issuance of the Directives breached the Petroleum Agreement due to the specific circumstances of their implementation, the concept of unitisation itself was not deemed inherently unlawful,” it said.
It explained that the action gives Ghana flexibility to determine appropriate actions in the national interest, the ministry explained. “The withdrawal of the Directives is without prejudice to the power of the Minister to issue new directives where necessary for the equitable and efficient development of Ghana’s petroleum resources,” it clarified.
It stated that government will explore options for coordinated development within and near the WCTP 2 contract area, it said.
“The Government will continue to support Springfield as an Indigenous Ghanaian E&P Operator to commercialize the Afina discovery which has proven to have potential to add to Ghana’s reserves of oil and gas,” the statement read.
The ministry noted that appraisal of the Afina discovery has revealed potential for substantial gas resources.
“It is also note-worthy that the appraisal of the Afina discovery has revealed the potential for substantial gas resources which would enhance Ghana’s energy security and sustainability,” it said.
The government plans to work with Springfield and other nearby Contractors to monetize these gas resources quickly, it added.
“The government of Ghana reiterates its commitment to maintaining a conducive environment for investments in the upstream petroleum sector while ensuring compliance with the legal and regulatory framework governing the industry,” the ministry stated.
While the Petroleum Commission continues evaluating the Afina 1X well appraisal report, the government expressed confidence in the field’s future.
“The government believes that the Afina field has the potential for a future unitisation or a development on its own. Government has confidence in Afina’s potential as a future unitised field or a tie back to an existing infrastructure for development”.
The ministry also acknowledged the Tama field’s importance
“The government also acknowledges that the Tama field, which is on the springfield block, holds 1.2 TCF of gas and can greatly contribute to the country’s energy security.”
“Government encourages both ENI & Springfield to keep the door open for negotiations to determine an amicable and commercial solution,” it said, adding that “the government remains open to dialogue with its partners aimed at charting the best way forward in the sustainable exploitation of its natural resource endowments.”
