The Africa Centre for Energy Policy (ACEP) has issued a sharp warning against any move by the state to acquire the oil asset belonging to Springfield Exploration and Production Limited.
The organisation argues that the proposal places undue financial risk on the public purse and ignores the fundamentals of Ghana’s petroleum contracting framework.
ACEP’s Executive Director, Ben Boakye, said an objective review of the facts pointed to a troubling attempt to shift private losses onto the state.
He noted that the petroleum agreement under which Springfield held its block required the contractor to carry all exploration and appraisal risks.
According to him, the rules are clear that “the oil block belongs to the state. Contractors are supposed to take the risk and share benefits only when they succeed.”
Mr Boakye stressed that when a contractor falls short of its obligations, the remedy is not for the nation to step in as a financial backstop.
He explained that “when contractors fail, the state’s duty is to reclaim its asset, not underwrite the losses of private companies.” This, he said, is essential for maintaining discipline in the upstream regime and ensuring fairness for all industry players.
Concerns Over GNPC and Explorco Engagements
Central to ACEP’s concern is the revelation that the Ghana National Petroleum Corporation (GNPC) and its subsidiary, Explorco, are holding what has been described as “constructive discussions” with Springfield on a possible takeover.
Mr Boakye questioned the motive and judgement behind such talks, describing them as a worrying signal of institutional vulnerability.
“The claim that GNPC and Explorco are engaging Springfield in constructive discussions on a possible takeover is even more troubling.
“Both entities know the facts too well, but their track record undermines their credibility.”
ACEP’s Executive Director, Ben Boakye
He argued that the situation exposes deeper issues within Ghana’s technical governance space, where some officials operate with dual loyalties.
“We often hold politicians accountable, but technical people who moonlight for private interests and advise accordingly get away with it. In this case, GNPC and Explorco top officials are complicit.”
ACEP’s Executive Director, Ben Boakye
ACEP’s analysis also highlighted attempts earlier in the year to place a commercial value on the Springfield asset, even though its appraisal data had been widely challenged by regulators.
Mr Boakye noted that Springfield and some officials of Explorco tried to value the asset between 433 million and 1.1 billion dollars.
He stated that the parties engaged a reputable consultant to legitimise the exercise but undermined the process through the data they submitted.
In his words, “they hired a credible consultant, but provided discredited data, in essence to predetermine the outcome of the assignment. Garbage in, garbage out.”
Mr Boakye emphasised that the Petroleum Commission, Ghana’s upstream regulator, had already made its position clear.
He said the Commission was “unequivocal” in its assessment that Springfield’s appraisal claims were flawed. These findings, he argued, should have settled any question about whether the asset held commercial value warranting a state buyout.
Call for Contract Enforcement
ACEP maintains that the solution to Ghana’s challenges in the upstream sector does not lie in acquiring assets that have failed to meet minimum work obligations.
Instead, the organisation believes the sector requires stronger vigilance and stricter adherence to the terms of petroleum agreements.
“What Ghana needs is the enforcement of contractual obligations, not the acquisition of non-performing assets.”
ACEP’s Executive Director, Ben Boakye
He noted that several oil blocks awarded over the past decade have remained dormant, yet little has been done to ensure compliance or claw back the assets for reassignment.
Beyond governance concerns, ACEP warned that a takeover of Springfield’s asset would place unnecessary pressure on the national budget at a time when social and economic challenges remain acute.
Mr Boakye remarked that “there is too much poverty in this country for the state to spend scarce public funds on wasteful, trumped-up ventures.”
He urged policymakers to reflect carefully on the implications of diverting resources into an asset with contested value.
The think tank believes the state must demonstrate a firm commitment to safeguarding public interest, particularly in the extractive sector where misjudged decisions can carry long-term financial and operational costs.
According to ACEP, the prudent path lies in withdrawing the asset from Springfield and making it available to companies capable of meeting Ghana’s regulatory and technical expectations.
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