Gov’t Begins Independent Valuation of Springfield’s WCTP Block 2 Stake; Defends Cautious Approach to Springfield Block Takeover
Minister for Energy and Green Transition, John Jinapor, has clarified government’s decision-making process in relation to the takeover of Springfield Exploration and Production’s 84 percent stake in the West Cape Three Points (WCTP) Block 2, emphasising that the Ministry is taking a measured, evidence-based approach aimed at safeguarding both national and indigenous industry interests.
Speaking in an interview on Joy FM, the Minister stressed that he would not hastily reclaim petroleum blocks from local operators who have already invested heavily and demonstrated technical progress.
According to him, Springfield has satisfied key regulatory milestones required of a block operator, including drilling, appraisal and demonstrating commercial potential—factors he said weigh heavily in government’s ongoing engagement with the company.
“I will not be quick to assume blocks owned by an indigenous company. When an indigenous company has spent money, gone ahead to drill, conducted an appraisal, and shows that there is some potential, I will not terminate that agreement,” he noted, adding that he prefers to first engage with such companies to determine how government can support their advancement in the sector.
Mr. Jinapor maintained that the company has undertaken significant risk and investment and therefore deserves a fair and structured dialogue with the Ministry before any final decision is taken.
Government Undertaking Independent Valuation
The Minister further disclosed that an independent, fair and competent valuation of the takeover transaction is currently underway. The assessment seeks to determine the potential recoverable barrels from the WCTP Block 2 and verify the actual expenditure incurred by Springfield in its drilling and appraisal activities.
According to the Ministry, the objective is to prevent further operational delays, unlock long-term economic value, sustain upstream petroleum revenue, enhance national energy security and ensure that field development aligns with Ghana’s broader development priorities.
Under Ghana’s petroleum regime, government typically reclaims an oil block only after 10 years of inactivity by the assigned operator. Springfield made its Afina oil discovery in 2019, with subsequent drilling and appraisal works conducted thereafter.
Springfield CEO Returns Home After Dubai Detention
Meanwhile, Springfield CEO Kevin Okyere, who was recently detained by authorities in Dubai, is reportedly en route back to Ghana following an initial US$5 million payment.
His detention was connected to a high-stakes commercial dispute involving a US$94 million fraud claim filed by an affiliate of Swiss oil trader Petraco Oil Company SA. The matter stems from a US$100 million facility extended to Springfield in 2023, of which US$50 million was disbursed. Petraco alleges that approximately US$94 million was diverted through fraudulent transactions involving Springfield and its affiliate GMP Energy Ltd.
The allegations triggered formal complaints to Ghana’s Economic and Organised Crime Office (EOCO), the Police CID, and a parallel enforcement effort in Dubai, culminating in travel restrictions and Okyere’s recent detention.
Springfield has consistently denied the fraud claims, describing the dispute as a commercial disagreement being addressed through arbitration in the UK. The company has accused Petraco of using criminal complaints to gain leverage in the dispute.
However, enforcement actions in Dubai, including the US$5 million part-payment, signal an escalation far beyond a routine civil commercial disagreement, adding new layers of complexity to an already high-profile case involving one of Ghana’s most prominent indigenous oil operators.
