Sun. Apr 6th, 2025

The Government of Ghana has officially withdrawn a previous directive mandating the unitization of Springfield Exploration and Production Limited (Springfield) and ENI Ghana Exploration and Production Limited (ENI) regarding the Afina-1X Discovery and the Sankofa Cenomanian Oil Field.

The directive, issued in 2020 under the previous NPP administration, was revoked following a legal review of the arbitral award in SCC Arbitration U2021/114 (ENI & Vitol v. Ghana & GNPC) and advice from the Attorney General.

The Tribunal found procedural flaws in the directive’s implementation, including:

  • Lack of a statutory trigger for unitization under Ghanaian law.
  • Arbitrary determination of participation interests without sufficient evidence.

The Ministry of Energy acknowledged that while the directives breached the Petroleum Agreement, the principle of unitization itself remains valid. The government emphasized its commitment to fostering investment in the upstream petroleum sector within a clear legal framework.

Following the ruling, Springfield E&P has begun securing a rig and technical equipment to appraise and test the Afina-1X well.

By Editor

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