• About
  • Advertise
  • Privacy Policy
  • Contact
Tuesday, October 21, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Ghana-Eni Arbitration Result Aligns With Expert’s Expectations

Lilian Ahedorby Lilian Ahedor
July 9, 2024
Reading Time: 4 mins read
Lilian Ahedorby Lilian Ahedor
in General News
0
Theo Acheampong on cedi stability

Dr. Theo Acheampong

According to Dr. Theo Acheampong, a petroleum economist, and political risk analyst, the result of the Ghana-Eni arbitration dispute was largely expected and did not come as a surprise.

He stated that he has consistently maintained, since the beginning of this dispute, that the need to drill an appraisal well to unequivocally confirm the basis for unitization was being hindered by vested interests.

Dr. Acheampong emphasized that the oil industry operates according to established protocols and processes, not arbitrary decisions made by ministers and that no individual can unilaterally override these established procedures.

RelatedPosts

NPP Woes Deepen as All Potential Flagbearers Trail Behind NDC Bigwigs – Poll

Democracy Has Not Failed Africa; Africa Has Abused Democracy – Prof. Aryeetey

Mahama Directs Extension of Tema-Dawa Railway Line to Boost Industrial Cargo Transport

“Ghana lost on the substantive issue. Every country [it is common knowledge] has the right to ask parties to unitize oil fields to exploit their petroleum resources efficiently. However, the process of doing this matters”.

“The Arbitral Tribunal found that ‘in the circumstances in which they were issued,’ the Unitization Directives breached the Petroleum Agreement. That is, the unitization was contrary to the applicable regulations and thereby breached Article 26(2) of the Petroleum Agreement”.

Dr. Theo Acheampong

Dr. Acheampong further stated that the issue of cost awards is a mere distraction, as both parties had partial victories and should therefore bear their own legal costs, cautioning Ghanaians not to be misled by this aspect of the case.

He highlighted that government officials in Ghana neglected to adhere to established protocols to substantiate the rationale for unitization.

According to Dr. Acheampong, the key question is whether there was a dynamic connection between the WCTP field (Springfield) and the OCTP field (Eni), which would indicate a flow of resources between the two fields.

ADVERTISEMENT

“It is impossible to answer this without further appraisal drilling which Springfield itself alludes to in the documentation accompanying the case”. – Dr. Theo Acheampong

Dr. Acheampong pointed out that the tribunal acknowledged in paragraphs 420 and 421 that the completion of an appraisal well was a necessary precursor to imposing unitization and determining tract participation, emphasizing the importance of proper procedure.

Tribunal Finds Ghana’s Unitization Measures Flawed

Furthermore, Dr. Theo Acheampong pointed out that the Tribunal ultimately concluded that the unitization measures implemented by the First Respondent were marred by numerous substantive and procedural deficiencies, highlighting significant flaws in the decision-making process.

Eni Vitol field

“In reaching this conclusion, the Tribunal did not analyze all of the Claimants’ allegations and evidence, although it did consider them, given that the aspects reviewed proved sufficient to conclude that the unitization was contrary to the applicable regulations and thereby breached Article 26(2) of the Petroleum Agreement”.

Dr. Theo Acheampong

Dr. Acheampong urged Ghanaians to recognize that, contrary to the government’s claims, Ghana did not emerge victorious in the arbitration case, and that a more nuanced understanding of the outcome is necessary.

Dr. Acheampong emphasized that a thorough examination of the arbitration judgment reveals that Ghana ultimately lost the central issue of forced unitization, despite any attempts to spin the outcome as a victory.

He observed that, while Ghana didn’t succeed on the main issue, the fact that no costs were awarded could be seen as a small consolation prize, allowing one to argue that it was a partial victory, albeit a stretch.

Dr. Acheampong observed that, aside from paragraphs 20(b)(1 and 2), which related to Eni and Vitol’s claim for damages due to the government’s breach of obligations, the Government of Ghana’s seven other claims were entirely unsuccessful, with none of them being granted by the tribunal.

He observed that while the country was spared a direct judgment debt, the government’s actions have nonetheless resulted in significant losses and consequences for the industry as a whole.

He noted that the government’s actions have led to a significant erosion of investor trust, causing many to divert their investments to alternative destinations like Cote d’Ivoire, highlighting that the true impact goes beyond the direct financial cost, which is relatively minimal.

“Our oil industry is in a decline; doing a paltry 130Kbpd (from a high of 190Kbpd) when we should be doing over 400Kbpd now”. – Dr. Theo Acheampong

READ ALSO: Lack of Funds in the Music Industry, a Common Misconception

Tags: economyghanaGhana-Eni Arbitrationinternational tribunalMinistry of EnergyOil industry
Please login to join discussion
Previous Post

Deloitte and Petroleum Commission Hold Webinar on Local Content Regime in Ghana’s Oil Sector

Next Post

Actor Shares Experiences With Role Allocation in the Movie Industry

Subscription Form

Related Posts

Former Vice President Dr Bawumia and former Assin Central MP Kennedy Agyapong, two leading figures of the opposition NPP at it Thank You Tour
General News

NPP Woes Deepen as All Potential Flagbearers Trail Behind NDC Bigwigs – Poll

October 21, 2025
Democracy Has Not Failed Africa; Africa Has Abused Democracy – Prof. Aryeetey
General News

Democracy Has Not Failed Africa; Africa Has Abused Democracy – Prof. Aryeetey

October 21, 2025
Mahama Refers Electoral Violence Report to Attorney-General for Legal Review
General News

Mahama Directs Extension of Tema-Dawa Railway Line to Boost Industrial Cargo Transport

October 21, 2025
Prof. Aryeetey Warns Ghana’s TVET Reforms Are Failing
General News

Prof. Aryeetey Warns Ghana’s TVET Reforms Are Failing

October 21, 2025
No Bad Blood Between OSP and AG’s Office – Sammy Darko Confirms Ofori-Atta’s Docket Nears Submission for Extradition
General News

No Bad Blood Between OSP and AG’s Office – Sammy Darko Confirms Ofori-Atta’s Docket Nears Submission for Extradition

October 20, 2025
Dr Justice Srem Sai, Deputy Attorney General and Minister for Justice
General News

AG’s Office Awaits OSP’s Docket to Trigger Ofori-Atta’s Extradition — Deputy Attorney-General

October 20, 2025
Cedi’s October Surge Stuns Markets as 16% Jump in Two Weeks Sparks Investor Optimism
Economy

Cedi’s October Surge Stuns Markets as 16% Jump in Two Weeks Sparks Investor Optimism

by M.COctober 21, 2025
Global Lithium Market
Extractives/Energy

Atlantic Lithium Uncovers Major Lithium Anomalies in Côte d’Ivoire 

by Prince AgyapongOctober 21, 2025
Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns
Vaultz Business

Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns

by Silas Kafui AssemOctober 21, 2025
Former Vice President Dr Bawumia and former Assin Central MP Kennedy Agyapong, two leading figures of the opposition NPP at it Thank You Tour
General News

NPP Woes Deepen as All Potential Flagbearers Trail Behind NDC Bigwigs – Poll

by evansjrOctober 21, 2025
Hon. Seidu Issifu, Minister of State for Climate Change and Sustainability
Extractives/Energy

Ghana’s Climate Minister Issifu Appointed to CVF-V20 Board in Washington 

by Prince AgyapongOctober 21, 2025
Energy Minister Touts Sector Strides
Extractives/Energy

Energy Minister Touts Sector Strides

by Bless Banir YarayeOctober 21, 2025
Cedi’s October Surge Stuns Markets as 16% Jump in Two Weeks Sparks Investor Optimism
Global Lithium Market
Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns
Former Vice President Dr Bawumia and former Assin Central MP Kennedy Agyapong, two leading figures of the opposition NPP at it Thank You Tour
Hon. Seidu Issifu, Minister of State for Climate Change and Sustainability
Energy Minister Touts Sector Strides

Recent News

Cedi’s October Surge Stuns Markets as 16% Jump in Two Weeks Sparks Investor Optimism

Cedi’s October Surge Stuns Markets as 16% Jump in Two Weeks Sparks Investor Optimism

October 21, 2025
Global Lithium Market

Atlantic Lithium Uncovers Major Lithium Anomalies in Côte d’Ivoire 

October 21, 2025
Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns

Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns

October 21, 2025
Former Vice President Dr Bawumia and former Assin Central MP Kennedy Agyapong, two leading figures of the opposition NPP at it Thank You Tour

NPP Woes Deepen as All Potential Flagbearers Trail Behind NDC Bigwigs – Poll

October 21, 2025
Hon. Seidu Issifu, Minister of State for Climate Change and Sustainability

Ghana’s Climate Minister Issifu Appointed to CVF-V20 Board in Washington 

October 21, 2025
Energy Minister Touts Sector Strides

Energy Minister Touts Sector Strides

October 21, 2025
The Vaultz News

Copyright © 2025 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2025 The Vaultz News. All rights reserved.

Discover the Details behind the story

Get an in-depth analysis of the news from our top editors

Enter your email address