The Minister of Energy and Green Transition has officially withdrawn the Unitisation Directives that were imposed on April 9, 2020, October 14, 2020, and November 6, 2020. These directives had mandated a compulsory unitisation between Springfield Exploration and Production Limited (Springfield) and Eni Ghana Exploration and Production Limited (ENI) concerning the Afina-1X Discovery and the Sankofa Cenomanian Oil Field.
The decision to withdraw the directives follows a comprehensive review of the Arbitral Award referenced SCC Arbitration U2021/114 (ENI & Vitol v. Ghana & GNPC) dated July 8, 2024, along with the legal opinion provided by the Attorney General and Minister of Justice. It also comes after consultations and dialogue with relevant stakeholders.
The Ministry of Energy acknowledged the Tribunal’s findings, which noted that the issuance of the directives breached the Petroleum Agreement due to the specific circumstances of their implementation. However, the concept of unitisation itself was not deemed inherently unlawful. This provides Ghana with the flexibility to determine the most appropriate course of action in the national interest.
The withdrawal of the Unitisation Directives does not negate the Minister’s authority to issue new directives where necessary for the equitable and efficient development of Ghana’s petroleum resources.
Exploring Future Development and Energy Security
The government has also expressed its commitment to exploring options for coordinated development within and near the WCTP 2 contract area. Additionally, it will continue to support Springfield as an Indigenous Ghanaian E&P operator to commercialize the Afina discovery, which has shown significant potential to contribute to Ghana’s oil and gas reserves.
The appraisal of the Afina discovery has revealed substantial gas resources, which would further enhance Ghana’s energy security and sustainability. The government is committed to working with Springfield and other contractors in the area to expedite the monetization of these gas resources.
The government has reaffirmed its commitment to maintaining a conducive investment environment for the upstream petroleum sector while ensuring compliance with the legal and regulatory framework governing the industry.
Future of Afina and Tama Fields
As the Petroleum Commission continues to evaluate the appraisal report for the Afina 1X well, the government believes the Afina field holds potential for future unitisation or for development as an independent project. There is confidence in Afina’s potential, either as a future unitised field or a tie-back to existing infrastructure for further development.
The government also acknowledges the significance of the Tama field, located on the Springfield block, which holds 1.2 TCF of gas and can play a crucial role in enhancing the country’s energy security.
Encouraging Negotiations and Dialogue
In its statement, the government encouraged both ENI and Springfield to keep open the possibility of negotiations to reach an amicable and commercially viable solution. The government remains open to continued dialogue with its partners to chart the best course forward for the sustainable exploitation of the country’s natural resources.
