The Ministry for Energy and Green Transition has withdrawn a directive that forced the unitization of oil fields between Eni Ghana Exploration and Production Limited and Springfield Exploration and Production Limited. This decision follows a review of an arbitration ruling that found the directive to be unsound due to flaws.
The arbitration tribunal, which dismissed a claim by Eni and Vitol against Ghana, acknowledged the benefits of unitization but identified shortcomings in the implementation of the directives. The tribunal found that the conditions stipulated under Section 34 of the Petroleum, Exploration and Production Act, 2016, and Regulation 50 of the Petroleum (Exploration and Production) (General) Regulations, 2018, were not met.
The Ministry of Energy and Green Transition exercised its powers to withdraw the directive, citing the need to rectify the flaws. However, the Ministry emphasized that this action does not preclude the issuance of new unitization directives in the future, should evidence emerge.
This move is seen as a step towards revitalizing Ghana’s petroleum sector. The government has reiterated its commitment to fostering an investment climate, while ensuring adherence to the country’s legal and regulatory framework.
Ruth Abla ADJORLOLO
