Ghana’s Ministry of Energy and Green Transition on Wednesday announced that steps have been initiated for a possible takeover of indigenous upstream player Springfield Exploration and Production’s (SEP) Afina-1X oil well in the West Cape Three Points Block 2 (WCTP2).
A statement issued by the Ministry, confirming the government’s decision, indicated that the upstream regulator, the Petroleum Commission, together with the Ghana National Petroleum Corporation (GNPC), has begun a procurement process to hire an independent technical consultant and a transactional advisor to advance the effort.
The mandate of the consultant and advisor includes conducting a comprehensive technical evaluation of the WCTP2 block, undertaking a full audit and verification of past expenditures, and preparing financial and commercial due-diligence reports. In addition, they are to carry out an independent valuation of Springfield’s interest.
According to the Ministry, the rationale behind this move is to help arrest the decline in crude oil production, which currently hovers around 150,000 bopd, down from over 200,000 bopd in 2019. The downward trend in output has been a major concern for industry players and energy analysts.
The Ministry believes this intervention is essential to prevent further delays to field development, unlock the block’s long-term economic value, sustain upstream activity and associated national revenues, and enhance Ghana’s overall energy security.
“With Ghana’s national crude oil production declining over recent years, coupled with uncertainties within the global energy transition, Government considers it urgent to advance the development of the WCTP2 resource base,” the Ministry stated.
Despite the ongoing process for a possible takeover of SEP’s interest, the Ministry assured that the government remains fully committed to deepening the participation of indigenous Ghanaian companies, strengthening national technical capacity and skills transfer, and ensuring that Ghana’s local content framework continues to guide upstream operations.
It further noted that the process is being carried out without prejudice to any ongoing investigations concerning SEP or its affiliated entities by the appropriate state institutions.
“Due process and institutional independence remain fully respected,” the Ministry added.
It would be recalled that the Afina-1X well, originally drilled in 2019, is located at a water depth of 1,030 metres and reaches a total depth of 4,085 metres.
The well uncovered a 65-metre-thick light oil reservoir, with 50 metres of net oil pay in high-quality Cenomanian sandstone formations. Additionally, 10 metres of gas- and condensate-bearing sands were encountered in Turonian-age formations at the structure’s edge.
Springfield E&P later claimed that the Afina-1X discovery straddles Eni’s Sankofa field, which is also located within the WCTP area, prompting the Ministry of Energy under the previous government to direct both companies to jointly develop the resource for the nation’s maximum benefit.
That directive resulted in contention between the two companies, with Springfield E&P filing a legal suit against Eni in Ghana, while Eni initiated a suit against Springfield E&P in London.
To ensure harmony in the upstream sector and restore investor confidence, President John Dramani Mahama, upon assuming office, reversed the directive—a decision subsequently confirmed by the Ministry of Energy and Green Transition in a statement to the media.
Following the reversal, Eni and its OCTP partners in September 2025, during the Africa Oil Week (AOW) in Accra, signed an MoU to invest US$1.5 million in their operations in Ghana.
This portal will keep readers updated on how the industry responds to this latest development.
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