Government has officially withdrawn its Unitisation Directives imposed on ENI Ghana Exploration and Production Limited (ENI) and Springfield Exploration and Production Limited (Springfield) in relation to the Afina-1X Discovery and the Sankofa Cenomanian Oil Field.

In a press statement issued on February 25, 2025, the Minister of Energy and Green Transition, John Abdulai Jinapor, announced the withdrawal of directives initially mandated on April 9, 2020, October 14, 2020, and November 6, 2020, which had compelled the two companies to unitise their operations.

This decision follows a thorough review of the Arbitral Award (SCC Arbitration U2021/114: ENI & Vitol v. Ghana & GNPC) dated July 8, 2024, and a legal opinion from the Attorney General and Minister of Justice.

The Ministry also engaged in extensive consultations and dialogue with relevant stakeholders before arriving at this decision.

While the Tribunal ruled that the Directives breached the Petroleum Agreement, it did not deem unitisation itself unlawful.

This, according to the Ministry, allows Ghana the flexibility to determine the best course of action in the national interest.

However, the withdrawal does not eliminate the possibility of new directives in the future.

The Ministry of Energy stressed that the government retains the authority to issue fresh directives when necessary for the equitable and efficient development of the country’s petroleum resources.

The government is now exploring coordinated development options within and near the West Cape Three Points (WCTP) 2 contract area while reaffirming its support for Springfield as an indigenous operator to commercialize the Afina discovery.

The Afina appraisal has revealed substantial gas reserves that could significantly boost Ghana’s energy security and sustainability.

Government is committed to working with Springfield and other contractors to monetize these resources expeditiously.

Additionally, the statement highlighted the potential of the Tama field, located within Springfield’s block, which holds 1.2 trillion cubic feet (TCF) of gas—a resource that could greatly contribute to Ghana’s energy security.

Looking ahead, the government sees the Afina field as a potential candidate for future unitisation or a tie-back to existing infrastructure for development. The Petroleum Commission is currently evaluating the Afina-1X appraisal report to determine the best approach.

Encouraging continued dialogue, the statement urged ENI and Springfield to remain open to negotiations for an amicable and commercially viable solution.

“The government remains open to dialogue with its partners aimed at charting the best way forward in the sustainable exploitation of its natural resource endowments,” the statement concluded.