Govt Withdraws Springfield and ENI Unitization Directive
The government of Ghana has withdrawn the directives imposing a unitisation between Springfield Exploration and Production Limited (Springfield) and Eni Ghana Exploration and Production Limited (ENI) over the Afina-IX Discovery and the Sankofa Cenomanian Oil Field.
The unitization directive issued by the previous government was revoked on February 25, the Ministry of Energy has announced.
According to a statement issued by the sector Minister, John Jinapor, the decision was informed by a review of an Arbitral Award referenced SCC Arbitration U2021/114 (ENI & Vitol v. Ghana & GNPC) in 2024; legal advice from the Attorney-General; as well as consultations with relevant stakeholders.
It is the opinion of the Ministry that the issuance of the Directives breached the Petroleum Agreement due to the specific circumstances of their implementation though the concept of unitisation itself was not deemed inherently unlawful.
This, it noted, provides Ghana with the flexibility to determine the most appropriate course of action in the national interest.
“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 Government will 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 the potential to add to Ghana’s reserves of oil and gas.”
It therefore encouraged the two companies to open up 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.”
Source: opemsuo.com/Hajara Fuseini
