The Minister of Energy and Green Transition has withdrawn the Unitisation Directives imposed in 2020, which mandated the compulsory merging of Springfield Exploration and Production Limited (Springfield) and Eni Ghana Exploration and Production Limited (ENI) in relation to the Afina-1X Discovery and the Sankofa Cenomanian Oil Field.
This decision, announced on February 25, 2025, follows a thorough review of an arbitration ruling and legal advice from the Attorney General.
The arbitration award, referenced SCC Arbitration U2021/114 (ENI & Vitol v. Ghana & GNPC), was issued on July 8, 2024.
This is contained in a press statement issued by the ministry copied The Ghanaian Times.
The Tribunal found that while the directives violated the Petroleum Agreement due to the manner in which they were enforced, the principle of unitisation itself was not unlawful.
This gives Ghana the flexibility to determine the best approach for managing its petroleum resources. Despite the withdrawal, the Minister retains the authority to issue new directives when necessary to ensure efficient and equitable development of the country’s oil and gas sector.
The government is now exploring options for coordinated development within and around the WCTP 2 contract area. It has also reaffirmed its support for Springfield as an indigenous Ghanaian exploration and production company in its efforts to commercialise the Afina discovery.
The appraisal of the Afina discovery has revealed significant gas potential, which could enhance Ghana’s energy security and sustainability.
The government plans to work with Springfield and other nearby contractors to develop and monetise these gas resources as quickly as possible. It also recognises the potential of the Tama field, located in Springfield’s block, which holds an estimated 1.2 trillion cubic feet of gas.
This resource could play a vital role in strengthening the country’s energy supply. “The government remains committed to creating a stable and attractive environment for investments in the petroleum sector while ensuring that operations align with Ghana’s legal and regulatory framework,” the statement said.
“It believes that Afina could still be developed as a unitised field in the future or linked to existing infrastructure for production,” the statement added.
Encouraging dialogue, the government has urged both ENI and Springfield to continue negotiations and seek an amicable and commercially viable solution. It remains open to discussions with all stakeholders to find the best way to sustainably manage and exploit Ghana’s natural resources.
BY AGNES OPOKU SARPONG
