The President of the Republic, Nana Addo Dankwa Akuffo-Addo has pledged to provide an amicable solution to Eni Ghana and Springfield’s unitization impasse that has escalated into a series of court arbitrations in the past couple of months.
This comes at a time when several discussions held to resolve the situation has not yielded the intended outcome— the unitization of the two oil companies on the grounds of neighbouring discoveries located in their contract areas.
Recent happenings tied to the unitization has seen Eni Ghana go ahead to seek reliefs from the proposed unitization from a London Tribunal. A move which experts have indicated, if not addressed, may put the country in a tight corner.
In the quest to tackle the issues, this has outstretched over a year, yet the government is still insistent on the unitization due to the benefits in it for the country. This includes an estimated US$8 billion that the government can accrue from revenues should both companies agree to unitize.
Meanwhile, in his request to the President of the Republic, the Paramount Chief of Eastern Nzema Traditional Council, Awulae Amihere Kpanyinli III, called on the President to address the existing issue between the two companies. A request which the President responded positively indicating that he is personally committed to ensuring that the issue is resolved amicably.
“I am still very upset that matters we have been discussing have become the subject of arbitration with notice of arbitration coming in.”
President Akuffo-Addo
President gives assurance to solve the issue
The President stressed that prior meetings have been held between himself and the parties involved, all geared towards arriving at a common ground to deal with the matter without any litigation.
“I have had two separate meetings with the key figures involved from our side and on the side of Eni to try and find a common ground that will enable us to deal with this matter without litigation. It hasn’t happened so far.
“But I want to assure you that we would continue to discuss and find an amicable solution. Therefore, let me say that the request by the President of the Nzemamanle Council, Awulae Amihere Kpanyinli III, is a request that sits very well with me and I will be doing my very best to make sure it happens.”
President Akuffo-Addo
The President gave these assurances during a speech at the ‘Ellembelle Business Expo’, to which he was the Special Guest of Honour, under the theme ‘Harnessing Our Investment Opportunities for a Sustainable Job Creation in Ellembelle’.
The backdrop to these ensuing events between the two companies began in April 2020. At a time when the then Minister of Energy, Mr John Peter Amewu, in accordance with Section 34(1) of the Petroleum (Exploration and Production) Act, 2016 (Act 919), directed ENI and Springfield to execute a unitization with respect to the Sankofa field in the OCTP and Afina discovery in the WCTP contract areas.
Although this unitization directive is purported to have been grounded in the fact that the Sankofa Cenomanian Reservoir extends into the WCTP Block 2 contract area, Eni Ghana believes otherwise, thus its current litigation.
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