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Business News of Thursday, 27 February 2025

    

Source: www.ghanawebbers.com

Government withdraws ENI-Springfield Unitisation Directives, opens door for new development strategy

Energy Minister John Abdulai Jinapor Energy Minister John Abdulai Jinapor

The Ghanaian government has officially withdrawn its Unitization Directives imposed on ENI Ghana and Springfield Exploration concerning the Afina-1X Discovery and Sankofa Cenomanian Oil Field.

Energy Minister John Abdulai Jinapor announced the decision on February 25, 2025, citing a review of an arbitration ruling (SCC Arbitration U2021/114: ENI & Vitol v. Ghana & GNPC) and legal advice. The Tribunal found that the directives breached the Petroleum Agreement but did not rule unitization itself unlawful, allowing flexibility in Ghana’s approach.

While the government may issue new directives in the future, it is currently exploring coordinated development options in the West Cape Three Points (WCTP) 2 area.

The Ministry reaffirmed its support for Springfield in commercializing the Afina discovery, which has significant gas reserves that could enhance Ghana’s energy security.

Additionally, the Tama field within Springfield’s block, containing 1.2 trillion cubic feet of gas, presents another opportunity for development. The Petroleum Commission is evaluating the Afina-1X appraisal report to determine the best approach, including potential future unitization or infrastructure tie-backs.

The government has encouraged ENI and Springfield to remain open to negotiations for a commercially viable solution.