Kevin Okyere, CEO and founder of Springfield Ghana has described the ruling by Commercial Division of the Accra High Court as a “welcome vindication of Springfield’s position on the issue of unitization and a positive result.”
According to Mr. Okyere, Springfield is always looking 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.
The recent ruling forms part of the substantive case involving ENI and Springfield which is currently pending before the Accra High Court. Springfield, which operates the Afina oil field which is near to ENI Sankofa offshore field, had asked the court to preserve revenue from Sankofa until a deal is reached to combine the projects and each gets a share.
However, the court has ordered that 30% of all revenues accruing to ENI from exploration and production activities from the Sankofa field be preserved in an interest-bearing account until the substantive case is determined.
The court said its decision would protect the interests of Springfield while allowing Sankofa, which produces over 50,000 barrels of oil per day, to continue operating and cover costs.
Meanwhile, Kennedy Noonoo, Corporate Affairs Manager of Springfield who was also reacting to the preliminary ruling also stated that “they [Springfield] have welcomed the ruling”. He further suggested that he is confident the final court ruling will allow for effective protection of the geological structure of the greater Sankofa oil field.
“The ultimate split of the Greater Sankofa field, that is Afina and Sankofa, between ENI and Springfield, has already been decided upon by science. Therefore, the ruling in our opinion is very much welcome. The final court determination will allow the resource owner, Ghana, with the operators in both blocks to protect the integrity of the geological structure.
We also think the ruling will ensure that the development and management of the Greater Sankofa field are consistent with world-class practices with the ultimate aim of maximization of petroleum extraction.”
However, when ENI Ghana was contacted for their views on the ruling, they stated that they have taken note of the ruling of the High Court and is waiting to receive the full detailed ruling of the Court and review same in order to establish the impact it could have on their current operations.
ENI Ghana also added that they “fully expect to take the appropriate steps necessary in order to protect their operations in the country, including appealing against this ruling.”
ENI has however maintained that further appraisal of Springfield’s Afina field needs to be done to determine its economic viability before a unitization program is embarked upon.
But according to Springfield, “ENI has not only refused to comply with the unitization order by the then Minister Peter Amewu, but has gone on to produce petroleum from the straddling contract areas which include their Afina field, thereby denying Springfield of enjoying the revenue that will accrue from the production activity,” hence their lawsuit.
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