The Ministry of Energy and Green Transition has withdrawn the unitization directive between Springfield Exploration and Production Limited (Springfield) and Eni Ghana Exploration and Production Limited (ENI)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.
This decision was announced in a statement dated February 25, 2025 and signed by the Energy Minister, John Abdulai Jinapor.
According to the ministry, the decision was taken following a legal advice provided by the Attorney General and Minister of Justice and a thorough review of the Arbitral Award referenced SCC Arbitratiofi U2021/114 (ENI & Vitol v. Ghana & GNPC) dated July 8, 2024.
The Energy Ministry further noted that a Tribunal established to look into the agreement identified several procedural flaws with the implementation of the unitization directive.
The findings by the Tribunal includes; absence of a statutory trigger for unitization and arbitrary determination of initial tract participation. “The Tribunal determined that the conditions required under Section 34 of the Petroleum (Exploration and Production) Act, 2016 (Act 919), and Regulation 50 of the Petroleum (Exploration and Production) (General) Regulations, 2018 (L.I. 2359) were not satisfied.
“The allocation of participation interests was deemed arbitrary and unsupported by sufficient evidence etc,” the Ministry said in its statement.
According to the Ministry, the withdrawal of the unitization provides Ghana with the flexibility to determine the most appropriate course of action in the national interest. “In consequence, and in alignment with the discretionary powers vested in the Minister under Section 34 of Act 919 and Regulation 50 of L.I. 2359, the Ministry hereby withdraws the Unitization Directives,” the statement added.
The Ministry expressed its commitment to “issue new directives upon subsequent evidence that such a measure is required for the equitable and efficient development of Ghana’s petroleum resources.”
Credit: 3news