14. West Cape Three Points Block 2 (673sqkm)
Contract Parties
Springfield E&P (Operator), GNPC EXPLORCO, GNPC
Effective Date/Initial Exploration Period
Effective Date: July 26, 2016
Initial Exploration Period (2.5 years + 2 years extension): July 26, 2016 – January 25, 2021
Minimum Exploration Program (Initial Phase)
-
Drill one (1) Exploration Well
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Conduct geological and geophysical studies
Minimum Expenditure
$30,000,000
Observations as of 2022
The unresolved dispute between Springfield and Eni Ghana over unitization has stalled development on Afina-1X, leading to potential revenue losses for Ghana. Legal actions and appeals are ongoing.
The contractor has acquired 3D data for processing. The extension granted in 2016 will expire in 2021. However the 9 months granted by Petroleum commission for the company to submit appraisal programme for inherited discoveries is still in default.
No drilling has been made to date.
The Contractor drilled the Afina-1X and made a discovery, indicating in 2020 that the discovery merits appraisal.
Contractor notified the government of its intention to appraise the Afina Cenomanian Discovery with the submission of the Appraisal Program in May.
The Contractor has requested for the extension of deadline for submitting the appraisal programme to 2021 due to the pandemic.
This block is at the pre-development phase after a successful drilling campaign amidst the constraints of the Covid-19 resulted in discoveries on its Afina-1X well.
Springfield claims this discovery straddles Eni’s Sankofa field, but Eni disagrees with the position. The Minister of Energy subsequently directed the unitization of both fields for joint production in October 2020. This directive has led to a protracted legal tussle between the two companies since 2020.
Springfield has filed a suit to enforce the Minister of Energy’s directive. In June 2021, Springfield filed and won an application at a Commercial High Court for the preservation of 30 percent of oil proceeds from the Sankofa Field in an escrow account, pending the final determination of the case commenced by Springfield in respect of the unitization directive. Eni filed for a judicial review of this decision and lost.
In August 2021, Eni filed a lawsuit at the International Tribunal in London to challenge the Minister’s directive to unitize the two fields. As of the time of this report, that case is still pending at the Tribunal, with no conclusive agreement on unitizing the two fields.
The dispute between Springfield and Eni Ghana over the Minister of Energy’s unitization directive remains unresolved and is pending arbitration at the International Tribunal in London. This has stalled any development on Springfield’s Afina-1X and the potential revenues that could accrue to Ghana.
On the Minister for Energy’s directive to unitize the Afina (West Cape Three Points [WCTP] Block 2) discovery and the Sankofa Field, there was no conclusive agreement on this subject as of December 2022. According to Eni, the High Court of Ghana granted Springfield’s application for an interlocutory injunction on 15th July 2022, restraining GNPC and the Ministry of Energy from making further monthly payments due Eni and Vitol under their various agreements. Eni and Vitol continue to exercise their legal rights seeking to overturn the said Preservation Order, Varied Order and injunction Order of 15th July 2022. Eni and Vitol have also filed the necessary appeals against these orders, which are presently pending. Eni reported that GNPC and the Attorney General had filed applications in the High Court seeking to set aside the injunction order of 15th July 2022. In a different vein, Springfield filed a motion for contempt on 11th October 2022. The parties are presently awaiting the hearing of this application.
This update was provided under section 3.4 (Development in the Investment Climate). No update was found under exploration activities in the 2022 PIAC annual report.