The Government of Ghana, through the Ghana National Petroleum Corporation (GNPC) and its upstream subsidiary, GNPC Explorco, has entered into constructive discussions with Springfield Exploration and Production Limited (SEP) over a possible state-led takeover of SEP’s interest in the West Cape Three Points Block 2 (WCTP2).
In a press release sighted by GhanaWeb Business, the move is described as part of efforts to ensure that all decisions are evidence-based, commercially prudent, and in the best interest of the country.
The rationale for the government’s intervention stems from the steady decline in Ghana’s crude oil production in recent years, coupled with uncertainties surrounding the global energy transition.
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Government believes that advancing the development of WCTP2 is urgent, arguing that timely action will help secure the country’s energy future.
“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. A timely 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,” part of the release read.
“The intention is to reposition the asset for accelerated development, potentially through partnerships with technically strong and experienced deepwater operators willing to collaborate with the State,” it added.
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The West Cape Three Points Block 2 is a 673-square-kilometre offshore block in the Tano Basin, operated by Springfield Exploration and Production Limited.
It is historically significant as Ghana’s first wholly indigenous-operated oil block.
In 2019, Springfield drilled the Afina-1X well, confirming major discoveries estimated at more than 1.5 billion barrels of oil and 0.7 trillion cubic feet of gas in place. Despite these promising finds, commercial and operational challenges have slowed development, raising concerns about stranded resources.
Government’s plan is to accelerate the block’s development, safeguard national interests, and strengthen GNPC’s role in upstream operations.
The Petroleum Commission and GNPC are engaging independent technical consultants and transactional advisors to conduct a full technical assessment of the block and audit past costs before any final decision is taken.
SA/MA
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