ENI Ghana & Petroleum Workers & Transport Union in oil & Gas Upstream Industry wants Govt to withdraw obnoxious  conditions on AFINA discovery 

The General Transport, Petroleum, and Chemical Workers Union has urged the government, via the Minister of Energy, to eliminate the controversial terms and conditions imposed on the unitization of the AFINA Discovery in the West Cape Three Points Block 2 and the Sankofa Field in the offshore Cape Three Points area.

The union believes this change will restore order in the upstream petroleum sector.

In a petition submitted to the Minister of State in charge of Energy and the Ministry of Energy, the union expressed support for unitization aimed at maximizing petroleum resource recovery and improving resource exploitation efficiency. However, the union voiced serious concerns over the government's inaction in resolving the issue.

They emphasized that the lack of resolution has negatively affected the investment climate of the OCTP Project and the overall upstream business environment, which could lead to potential job losses for union members.

Read full statement below:
PETITION TO WITHDRAW IMPOSITION OF TERMS AND CONDITIONS FOR THE UNITISATION OF THE AFINA DISCOVERY IN WEST CAPE THREE POINTS BLOCK 2 AREA (“WCTP2”) AND THE SANKOFA FIELD IN OFFSHORE CAPE THREE POINTS AREA (“OCTP”)

The General Transport, Petroleum and Chemical Workers Union (“Union”) has been actively monitoring the Unitization directives and the subsequent legal action commenced by Springfield Exploration & Production Ltd against Eni Ghana and its partner, Vitol Upstream Ghana Limited, following your Unitization directives issued on 9th April, 14th October and 6th November 2020 (the “Unitisation Directive”).

While the Union supports the purpose of unitization for the optimum recovery of petroleum resources and/or to enhance the efficient exploitation of petroleum resources, we have observed with grave concern that the State's failure to resolve this issue and bring a decisive conclusion to the matter has significantly impacted the investment climate of the OCTP Project (including the general upstream business environment), resulting in potential job losses for our members.

We also acknowledge the Final Arbitration Award made by the international Arbitral Tribunal under the auspices of the Arbitration Institute of the Stockholm Chamber of Commerce, Stockholm, Sweden on July 8, 2024. This Award clearly determined that Ghana breached its own laws and the OCTP Petroleum Agreement by issuing the directive for the unitisation of the Afina discovery and Sankofa field.

Accordingly, we believe that as the Republic of Ghana was duly represented at the hearing of the Arbitration, the State would quickly do the needful and see to the implementation of the Award which is final and binding on the Parties and withdraw the flawed Unitisation Directive.

We therefore respectfully request that your good self; as a matter of urgency, intervene in this matter by retracting the directives regarding the Unitization Directives until all the parameters for unitization are fulfilled.

We are confident that withdrawing these directives will help restore the OCTP Partners' confidence, encouraging them to maintain their investments in OCTP and the CTP Block 4. This action will further help prevent decisions that could lead to job losses and negatively affect the State and the livelihoods of numerous families.

It would further also boost investor confidence in the Upstream sector considering that most upstream investors are interested in how this matter is being handled to its conclusion.

This letter serves as a formal request for a meeting on August 26, 2024, between you and the Union leadership to further discuss our petition regarding the withdrawal of the directives.

Thank you for your co-operation.
Yours faithfully,