Springfield Exploration and ProductionSpringfield Exploration and Production Limited (SEP), Ghanaian international oil and gas and an independent African energy company, has entered into agreement with the African Export-Import Bank (Afreximbank) for a loan facility of US$750 million to aid its operations.
This is a major breakthrough for the upstream oil and gas company to increase production for national development. 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.
The Director, Export Development of Afreximbank, Oluranti Doherty, signed on behalf of the African Union’s Development Bank, while the Chief Finance Officer of Springfield, George Owodo, signed for the company.
Mr Noonoo said the facility would positively impact the development of the West Cape Three Points Block Two, particularly the unitised Afina-Sankofa field, which would boost the upstream oil and gas space.
The Afina-One well made two discoveries in October 2019. The field contains gas, critical and light oil at a water depth of 1,030 metres drilled at a depth of 4,085 metres.
The field more than doubled Springfield’s proven oil reserves to 1.5 billion barrels and added almost one trillion cubic feet (TCF) of gas to the existing discoveries.
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.
Current Undiscovered Potential of the Block
The current undiscovered potential of the Block is estimated at over three billion barrels of oil and gas in multiple leads and prospects within multiple 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. These are the kinds of cooperation we want to see on the continent to propel growth and development.”
Kevin Okyere
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.
This partnership is expected to encourage local oil and gas firms to seek external support, aligning with the government’s agenda of fostering a truly Ghanaian-owned economy.
The African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-African and extra-African trade.
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