Ghana: End To Springfield E&P-Eni Impasse As Ghana Gov’t Withdraws Unitisation Directives

The Government of the Republic of Ghana, through the Ministry of Energy and Green Transition, has withdrawn the directive seeking to unitize the Afina Discovery oil block operated by Springfield E&P, a wholly owned Ghanaian upstream player, and the Sankofa Cenomanian oilfield operated by Italian oil and gas firm Eni and Vitol.

This move likely puts an end to nearly four years of dispute between Springfield E&P and Eni and its partner Vitol.

There were rumors that the ruling government, led by H.E. John Dramani Mahama, which took over from the immediate past administration of Akufo-Addo on January 7, 2025, would withdraw the directive issued by the Nana Akufo-Addo government in 2020 for the oil firms to unitize their blocks. As industry players waited for an official statement to confirm the rumors, the Ministry of Energy and Green Transition issued a statement on Wednesday, February 26, 2025, confirming that the government had withdrawn the unitization directive based on advice from the Attorney General and Minister for Justice and consultations with relevant stakeholders.

The Ministry stated that the decision follows a thorough review of the Arbitral Award referenced SCC Arbitration U2021/114 (ENI & Vitol v. Ghana & GNPC) dated July 8, 2024, and the legal opinion provided by the Attorney General and Minister of Justice.

The Ministry acknowledged the Tribunal’s findings that while the issuance of the directives breached the Petroleum Agreement due to specific circumstances of their implementation, the concept of unitization itself was not deemed inherently unlawful.

According to the Ministry, the withdrawal of the directives provides Ghana with flexibility to determine the most appropriate course of action in the national interest.

The statement clarified that 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.

The statement emphasized that the government would explore options for coordinated development within and near the WCTP 2 contract area and 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 noted that while the Petroleum Commission continues to evaluate the appraisal report of the Afina IX well, the government believes that the Afina field has potential for future unitization or development on its own.

The government encouraged both Eni and Springfield to keep the door open for negotiations to determine an amicable and commercial solution.

“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,” the statement concluded.

Source: https://energynewsafrica.com