Springfield Exploration and Production secures $750m facility from Afreximbank
Springfield Exploration and Production Limited (SEP), an independent African energy company, has successfully secured a substantial US$750 million facility from the African Export-Import Bank (Afreximbank). The signing ceremony took place at the recently concluded Afreximbank 30th Annual General Meetings held in Accra, Ghana.
The deal is expected to inject fresh momentum into an industry that has experienced stagnation or decline, prompting industry players to explore new blocks and generate increased revenues. Despite the global shift away from fossil fuels, this agreement underscores the persistent global demand for oil and gas resources.
Moreover, this partnership is anticipated to encourage local oil and gas firms to seek external support, aligning with the government’s agenda of fostering a truly Ghanaian-owned economy.
Representing Springfield, George Owodo, Chief Finance Officer, signed the agreement, while Ms. Oluranti Doherty, Director of Export Development at Afreximbank, signed on behalf of the bank.
The facility is set to have a positive impact on the development of the West Cape Three Points Block 2, with a particular focus on the unitized Afina-Sankofa field.
In October 2019, the Afina-1 well delivered two significant discoveries, including critical and light oil, as well as gas, at a water depth of 1,030 meters, with a total drilling depth of 4,085 meters. This discovery more than doubled Springfield’s proven oil reserves to 1.5 billion barrels and added nearly 1 trillion cubic feet (TCF) of gas to their existing discoveries. The block’s untapped potential is estimated to be over 3 billion barrels of oil and gas, spread across multiple leads and prospects within proven reservoir units.
Following the signing ceremony, Kevin Okyere, Chief Executive Officer of Springfield, expressed his enthusiasm, stating, “This is a great day for African companies in building an alliance with a great African financial institution like Afreximbank. This facility will enable us to add tremendous value to our oil block, and we are very excited about the opportunity.”
Springfield Exploration and Production Limited was established in March 2008 with a focus on exploring and exploiting oil and gas opportunities in Ghana and the wider West African sub-region. After a lengthy process that began in 2012, the company was awarded the West Cape Three Points Block 2 by the government of Ghana in March 2016. Currently, Springfield is the Operator and Majority Interest Holder of the block, with the Ghana National Petroleum Company and its exploration arm EXPLORCO holding the remaining interest.
