Energy think tank, the Africa Centre for Energy Policy (ACEP), has asked the government to tread with caution in its quest to acquire Springfield Exploration and Production’s interest in the Afina-1x oil discovery.
ACEP described this as a costly and unnecessary attempt by the Ghana National Petroleum Corporation (GNPC) to acquire Springfield Exploration and Production’s interest in the Afina-1x oil discovery.
Speaking on the matter, ACEP Executive Director Ben Boakye stated that the transaction lacks commercial justification.
He noted that the West Cape Three Points Block 2 (WCTP2) asset already belongs to the state and should be reclaimed and not purchased following Springfield’s failure to meet its contractual obligations.
According to him, the efforts to predetermine a valuation of up to US$1.1 billion are unreliable and based on “discredited data”.
He stated that the government cannot continue financing non-performing oil assets at a time when economic hardship and poverty levels are rising.
Boakye was responding to the announcement by the government that it has begun formal processes for a possible state-led takeover of the Afina field – one of Ghana’s most contentious undeveloped oil discoveries.
The Ministry of Energy and Green Transition announced that GNPC and GNPC Explorco are in “constructive discussions” with Springfield as part of a broader strategy to protect national petroleum assets and prevent potentially viable reserves from remaining stranded amid Ghana’s declining oil output.
The Ministry said that the Petroleum Commission and GNPC have commenced procurement to hire an independent technical consultant and transactional advisor.
A comprehensive technical evaluation of the WCTP2 block, an audit and verification of past expenditure, commercial and financial due diligence, and an independent valuation of Springfield’s interest are being undertaken.
According to the Ministry, these independent assessments will provide a commercially sound basis for any potential takeover and help reposition the field for accelerated development, possibly with experienced deepwater partners.
The statement added that the ongoing processes are without prejudice to existing investigations involving Springfield or related entities and reaffirmed the government’s commitment to maintaining institutional independence.
By: Rainbowradioonline.com/Ghana
