'Ghana Doesn’t Owe Cote d’Ivoire Any Compensation'

The Special Chamber of the International Tribunal of the Law of the Sea (ITLOS), today [Saturday] September 23, 2017, as part of its judgement on the three-year boundary dispute, ruled that Ghana does not owe Cote d'Ivoire, and should not pay any compensation.

Cote d'Ivoire, as part of reliefs put forward, asked the Chamber to order Ghana to compensate them, because in their view, Ghana benefited from a resource in itsterritorial waters.

They had argued that “reparation by equivalence or compensation should be envisaged both for the loss of hydrocarbon production for any damage that Ghana's activities may have caused to the rocks and deposits.”

Ghana on the other hand, argued that “it would be absurd to compensate Cote d'Ivoire for physical changes to the seabed brought about by oil production works which Cote d'Ivoire itself wants to pursue in the very same way.”

The Chamber dismissed Cote d'Ivoire's request sustaining Ghana's argument.

The Special Chamber, in delivering its judgement on the delimitation of the Maritime Boundary between the two in the Atlantic Ocean, also ruled that Ghana has not violated the sovereign rights of the Francophone country by exploring for oil in that disputed basin.

The Chamber rejected Côte d'Ivoire's argument that Ghana's coastal lines were unstable.

It also noted that Ghana has not violated Côte d'Ivoire's sovereign rights with its oil exploration in the disputed basin in question.

Justice Boualem Bouguetaia, President of the Special Chamber in reading the judgment, accepted Ghana's argument of adoption of the equidistance method of delineation of the maritime boundary.

In consideration of the new boundary, the Chamber determined that it starts from boundary 55 -200 nautical miles away, a position much closer to what Ghana was arguing for.

The judgement effectively means that Ghana's oil fields are not going to be materially affected.

Ghana's oil discovery
In 2007, Ghana discovered oil and gas in commercial quantities, and this was followed by Cote d'Ivoire staking its claim to portions of the West Cape Three Points.

These claims were renewed in 2010 after Vanco, an oil exploration and Production Company announced the discovery of oil in the Dzata-1 deepwater-well.

Cote d'Ivoire petitioned the United Nations asking for a completion of the demarcation of its maritime boundary with Ghana, and Ghana responded by setting up of the Ghana Boundary Commission.

This commission was tasked with the responsibility of negotiating with Côte d'Ivoire towards finding a lasting solution to the problem.

But this commission bore no fruit, and in September 2014, Ghana dragged Cote d'Ivoire to ITLOS after 10 failed negotiations.

ITLOS's first ruling in 2015 placed a moratorium on new projects, with old projects continuing after Cote d'Ivoire filed for preliminary measures and urged the tribunal to suspend all activities on the disputed area until the definitive determination of the case.

The moratorium prevented Tullow Oil from drilling additional 13 wells. Tullow thus drilled eleven [11] wells in Ghana's first oil field.

Background
In 2014, Ghana took the case to ITLOS to dispel claims it has encroached Cote d'Ivoire's marine borders as part of oil exploration activities at Cape Three Points, off the shores of the Western Region.

Ghana's defense held that Cote d'Ivoire was barred from demanding ownership to the disputed area it had acknowledged that Ghana owned the space without any qualms in the decades leading up to the oil discovery.

The oral hearings for the dispute were concluded in February 2017.

In 2007, Ghana discovered oil and gas in commercial quantities, and this was followed by Cote d'Ivoire staking its claim to portions of the West Cape Three Points.

These claims were renewed in 2010 after Vanco, an oil exploration and Production Company announced the discovery of oil in the Dzata-1 deepwater-well.

Cote d'Ivoire petitioned the United Nations asking for a completion of the demarcation of its maritime boundary with Ghana, and Ghana responded by setting up of the Ghana Boundary Commission.

This commission was tasked with the responsibility of negotiating with Côte d'Ivoire towards finding a lasting solution to the problem. But this commission bore no fruit, and in September 2014, Ghana dragged Cote d'Ivoire to ITLOS after 10 failed negotiations.

ITLOS's first ruling in 2015 placed a moratorium on new projects, with old projects continuing after Cote d'Ivoire filed for preliminary measures and urged the tribunal to suspend all activities on the disputed area until the definitive determination of the case.

The moratorium prevented Tullow Oil from drilling additional 13 wells. Tullow thus drilled eleven [11] wells in Ghana's first oil field.