The Africa Centre for Energy Policy (ACEP) has urged the Ghanaian government to reconsider Springfield Exploration and Production’s Afina-1X appraisal program. This call stems from concerns about discrepancies in data used to assess the oil discovery and potential regulatory oversights. ACEP, in a statement signed by Kodzo Yaotse, its Policy Lead for Petroleum & Conventional Energy, emphasized that the appraisal program raises questions about transparency, cost-efficiency, and long-term impacts on the sector.
The Afina-1X well, drilled in 2019 in the West Cape Three Points Block 2, marked a significant discovery of oil and gas by a Ghanaian-owned company, Springfield. The current appraisal program aims to confirm the commercial viability of these resources. However, ACEP pointed out that Springfield’s data on the Oil Water Contact (OWC) differ from the figures used by the Ministry of Energy to determine Tract Participation (TP) percentages in a unitization directive. The government’s directive granted Springfield and its partners 54.545% and Eni and its partners 45.455%.
According to ACEP, the ministry’s OWC estimate of 4130 meters resulted in a Stock Tank Oil Initially in Place (STOIIP) volume of about 642 million barrels, while Springfield’s OWC was 3958 meters. If Springfield’s data had been considered from the beginning, the Afina discovery might have required further evaluation before moving forward with unitization. This discrepancy has caused a three-year delay, wasting time and resources for the country.
ACEP expressed concerns about Springfield’s proposal to re-enter the Afina well for further assessments, estimating the cost at $50 million. This cost is now being passed onto the Ghana National Petroleum Corporation (GNPC) and Explorco, both partners in the Afina field. ACEP criticized the regulatory failures of the Petroleum Commission and Ministry of Energy, stating that timely reservoir flow tests during the original drilling would have saved significant costs and time.
Additionally, the Centre argued that Springfield’s re-entry plan, framed as an appraisal program, does not meet the legal requirements of Act 919, which mandates the delineation of hydrocarbon accumulation and the determination of commercial viability. ACEP also highlighted the need for collaborative efforts with Eni, Springfield’s counterpart in the unitization process, to confirm connectivity between the Afina and Sankofa fields. ACEP believes that this would have reduced disputes and created a more credible and effective appraisal process.
ACEP clarified that its critique is not aimed at harming Springfield but rather at defending national interest. The Centre warned of growing concerns that hidden interests are being prioritized over genuine investment in Ghana’s upstream sector, especially as global decarbonization efforts reduce the appeal of oil and gas projects. With the sector’s future at stake, ACEP stressed the importance of fair and transparent governance to attract investments and ensure sustainable development.
ACEP further identified broader challenges facing Ghana’s oil and gas industry, including failed policies and inaccurate assumptions about high oil production and revenues. These factors have discouraged investment, leaving the sector less attractive to potential investors, and hindering its growth potential.
In conclusion, ACEP called for more effective governance and policy reform to restore investor confidence and promote a healthier energy sector in Ghana.
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