Ghanaian oil exploration firm, Springfield has won a legal suit against Eni Ghana, subsidiary of Italian oil major, Eni SPA.
The suit which sought to compel Eni Ghana to relinquish 30 percent of revenues accrued form the sale of crude oil from the Sankofa field was granted by a Commercial High Court in Accra on Friday, June 25, 2021.
The suit by Springfield comes on the back of the unitisation impasse between both oil firms since April 2020 when a directive from the then Energy Minister, Peter Amewu, demanded for the unitization of the Afina and Sankofa fields for the purposes of ensuring optimal recovery of the hydrocarbon resources (crude oil) in the common reservoir in the interest of all the parties involved, including the State.
The court, in its ruling has directed Eni to make monthly payments of approximately $40 million into an account agreed upon by both companies.
Commenting on the ruling, Kevin Okyere, CEO and founder of Springfield, described the ruling as a positive result and a welcome vindication of Springfield’s position on the issue of unitisation.
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According to him, Springfield was forced to take the legal route following Eni’s reluctance to follow the unitisation directive and for all parties to reach an amicable resolution.
“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,” he stated.
Adding that, “Springfield looks forward to working with Eni as the operator of the unitized field in maximizing the production and the economic benefits for all stakeholders, including the Government and citizens of Ghana.”
Springfield believes that the court ruling could open the way for constructive negotiations and swift agreement in the interest of the two oil firms and all other parties, including the State, the Ghana National Petroleum Corporation, and hard-pressed stakeholders in the country’s nascent energy industry.
Springfield is the first independent Ghanaian company to lift the Government of Ghana’s crude oil entitlement from the TEN field in 2016 and 2017.
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The oil firm commenced operations in Ghana in 2008 and became one of the pioneer, key players in Ghana’s downstream sector.
It obtained a license in 2010 as a Bulk Distribution Company (BDC) from Ghana’s National Petroleum Authority (NPA) for the procurement, sale and distribution of petroleum products to Oil Marketing Companies (OMCs), refineries as well as neighbouring land-locked countries across West Africa.
Springfield has interacted with and formed strategic alliances with various oil majors and participants in the downstream sector including BP, Chevron, Total, SK Energy, Braskem, Vitol and, Trafigura.
Springfield ventured into the upstream sector to secure private Ghanaian involvement in upstream exploration and production opportunities in Ghana and the West African sub region.
