In a strategic move to enhance Ghana’s energy security and optimize its petroleum resources, the Minister of Energy and Green Transition, Hon. John Jinapor, has officially withdrawn the Unitisation Directives issued in 2020. The directives, which mandated the compulsory unitisation of the Afina-1X Discovery and the Sankofa Cenomanian Oil Field—operated by Springfield Exploration and Production Limited (Springfield) and Eni Ghana Exploration and Production Limited (ENI), respectively—have now been revoked following extensive consultations.
The Minister’s decision was informed by a thorough review of the July 8, 2024, arbitral ruling in the case of ENI & Vitol v. Ghana & GNPC (SCC Arbitration U2021/114), as well as legal guidance from the Attorney General’s office. While the ruling found that the directives breached the Petroleum Agreement, it also affirmed unitisation as a valid practice when properly executed. This gives Ghana the flexibility to determine the most effective approach to developing its petroleum resources.
Hon. Jinapor emphasized that the withdrawal does not rule out future unitisation if necessary. Instead, the government remains committed to ensuring efficient resource management within the West Cape Three Points (WCTP) 2 contract area.
The decision aligns with Ghana’s broader strategy to enhance energy security by accelerating the monetization of its substantial gas reserves. Recent appraisals of the Afina discovery have revealed significant gas deposits, which could play a crucial role in bolstering the country’s energy supply and sustainability. The potential of the nearby Tama field, estimated to contain 1.2 trillion cubic feet (TCF) of gas, has also been identified as a valuable asset for Ghana’s long-term energy needs.
Hon. Jinapor reaffirmed the government’s support for Springfield as an indigenous exploration and production company, recognizing the Afina field’s contribution to Ghana’s resource base. The government aims to collaborate with Springfield and other industry players to fast-track gas production and integrate Afina’s resources with existing infrastructure for greater operational efficiency.
The Minister urged both ENI and Springfield to remain open to negotiations to reach a commercially viable resolution that benefits all stakeholders. He assured that the government is committed to fostering a conducive investment environment in the upstream petroleum sector while upholding regulatory and legal frameworks.
As Ghana continues to develop its petroleum industry, the government remains dedicated to engaging industry stakeholders in constructive dialogue to ensure the sustainable and strategic exploitation of the country’s natural resources. The withdrawal of the directives signals a renewed focus on pragmatic and flexible energy policies that prioritize national interests while maintaining investor confidence.
