Offshore staff
ACCRA, Ghana – A Commercial High Court sitting in Accra has ruled in favor of Springfield Exploration & Production (SEP)’s application concerning the offshore Sankofa field, operated by Eni Exploration and Production Ghana.
The decision involves freezing 30% of revenues received by Eni and partner Vitol from the sale of crude oil from the field, which is the subject of an ongoing unitization dispute between Eni and Springfield. Its location is 60 km (37 mi) offshore in the Offshore Cape Three Points permit.
In late 2019, Ghanaian E&P company Springfield discovered a large oilfield in the adjoining offshore West Cape Three Points block 2, which it claims is an extension of Sankofa.
According to the company, the court’s order has taken effect, ruling that Eni and Vitol must pay $40 million a month.
Springfield CEO Kevin Okyere said his company has been forced to take legal action following Eni’s unwillingness to follow the Minister of Energy’s directive, instructing all parties to reach an amicable resolution.
He added: “Springfield is not interested in stalling ongoing crude oil production on the Sankofa field, and believe in fairness and justice for all, irrespective of their size and position. The consequences of this case for the Ghanaian oil industry will be systemic and immediate.”
Following the disruption caused to supply chains in the region by COVID-19 and market changes, “Ghana cannot afford to delay development of a flagship project capable of contributing significantly to the state’s coffers and ultimately improve the standard of living of Ghanaians,” he concluded.
06/30/2021
