The Minister of Energy and Green Transition yesterday the 25th day of February 2025, withdrew the Unitisation Directives imposed on the 9th April, 2020, 14th October 2020, and 6th November 2020, mandating a compulsory unitisation between 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 (Unitisation Directives).
The decision of the Minister follows a thorough review of the Arbitral Award referenced SCC Arbitration U2021/114 (ENI & Vitol v. Ghana & GNPC) dated 8th July 2024, and the legal opinion provided by the Attorney General and Minister of Justice.
It also follows consultations and dialogue with relevant stakeholders.
The Ministry acknowledged the Tribunal’s findings that while the issuance of the Directives breached the Petroleum Agreement due to the specific circumstances of their implementation, 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 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 potential to add to Ghana’s reserves of oil and gas.
It is also note-worthy that the appraisal of the Afina discovery has revealed the potential for substantial gas resources which would enhance Ghana’s energy security and sustainability.
The government will work with Springfield and other Contractors nearby to monetize these gas resources in an expeditious manner.
The government of Ghana reiterates its commitment to maintaining a conducive environment for investments in the upstream petroleum sector while ensuring compliance with the legal and regulatory framework governing the industry.
While Petroleum Comission continues to evaluate the appraisal report of the Afina 1X well, the government believes that the Afina field has the potential for a future unitisation or a development on its own. Government has confidence in Afina’s potential as a future unitised field or a tie back to an existing infrastructure for development.
The government also acknowledges that the Tama field, which is on the springfield block, holds 1.2 TCF of gas and can greatly contribute to the country’s energy security.
Government encourages both ENI & Springfield to keep the door open 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.
SIGNED
John Abdulai Jinapor
Minister of Energy and Green Transition
