The Oil and Gas sector Chairman at the Association of Ghana Industries (AGI), Kwame Jantuah says time is running out for the planned unitisation of the oil fields of both ENI Ghana and Springfield Ghana.
The remarks come two weeks after a court presided over by Her Ladyship Justice Mariama Sammo partly agreed with Springfield and ordered that 30% of all revenues accruing to ENI and Vitol from exploration and production activities from the Sankofa field be preserved in an interest-bearing account until the substantive case is determined.
Speaking to Citi Business News about the way forward, Mr. Jantuah maintained that Ghana will continue to be the biggest loser if the unitisation process further delays.
“It does not benefit ENI, nor does it benefit Springfield, for this stalemate to be happening. Because there is quite a lot of money to be made out of it. So let's try as much as possible to see this thing through because, on the Ghanaian side, unitisation will bring the government about $8 billion, which will help our economy.”
“Both exploration and production companies will also benefit immensely. I don't see why we should all just sit and have this situation hang around our necks. Let's do something about it now to ensure we all benefit from it because the current situation doesn't bode well for all of us,” he said. ENI & Springfield react differently to court ruling for 30% revenue payment
The then Energy Minister, John Peter Amewu had earlier asked ENI and Springfield to execute a Unitisation and Unit Operating Agreement (UUOA) at the Sankofa and Afina fields.
The directive is yet to be adhered to following a stalemate between the two oil firms.
Springfield subsequently dragged ENI to court.
Springfield prayed the court for a number of reliefs including an order directing ENI and Vitol to cooperate with Springfield to produce and develop the accumulation of petroleum in the Sankofa and Afina fields as one unit as well as an order for the immediate preservation of revenues earned from the exploration and production of petroleum by the Defendants from the Sankofa field.
ENI maintained that further appraisal of Springfield's Afina field needed to be done to determine its economic viability before the unitisation program is embarked upon.
But according to Springfield, ENI has not only refused to comply with the unitisation order by the then Minister, but has gone on to produce petroleum from the straddling contract areas which include their Afina field, thereby denying Springfield of enjoying the revenue that will accrue from the production activity, hence the lawsuit.
The court presided over by Her Ladyship Justice Mariama Sammo partly agreed with Springfield and ordered that from Friday, June 25, 2021, 30% of all revenues accruing to ENI and Vitol from exploration and production activities from the Sankofa field be preserved in an interest-bearing account until the substantive case is determined.