A Texas federal judge has imposed sanctions against Ghanaian energy firm Springfield Exploration & Production Ltd. for misrepresentations in a Ghanaian court regarding a discovery dispute, according to emerging reports.
It was reported that the U.S. District Judge, Keith P. Ellison, ruled on Tuesday that attorney fees and costs are warranted in connection with several proceedings, stemming from allegations by ENI Ghana Exploration & Production Ltd., the Ghanaian unit of Italian oil giant ENI.
Judge Ellison found that Springfield acted in bad faith and stated, “The court finds that the imposition of sanctions against Springfield pursuant to the court’s inherent powers to be appropriate based on a finding of bad faith.”
The sanctions relate to ENI Ghana’s motion to modify a protective order, Springfield’s counsel’s attempt to withdraw from the proceedings, and the sanctions process itself.
While Judge Ellison declined to vacate the protective order, he did determine that “modest sanctions are appropriate.” He instructed ENI Ghana to submit documentation detailing the costs and fees it is owed.
The dispute began when ENI Ghana initiated proceedings in Texas to obtain a report by Gaffney Cline & Associates Inc. The report allegedly found that Springfield’s oil field in Ghana contained significant untapped reserves, justifying a joint operation with ENI Ghana’s field.
However, Springfield refused to produce the report, hindering ENI Ghana’s ability to challenge Springfield’s claims. Gaffney Cline and its parent company, Baker Hughes Co., eventually provided the report, which led to a protective order to safeguard proprietary commercial information.
Disagreements arose over the handling of the documents if Ghanaian courts did not permit them to be filed under seal. Judge Ellison sided with Springfield, issuing a protective order in May 2023.
ENI Ghana and Vitol Upstream Ghana Ltd. have been seeking access to the Gaffney Cline report to support their case in Ghana, where they are contesting directives from Ghana’s Ministry of Energy. These directives mandate the joint development and sharing of proceeds from the Sankofa oilfield with the newly discovered “Afina Discovery,” potentially benefiting Springfield and the Ghana National Petroleum Corporation (GNPC).
In their filings, ENI and Vitol emphasized the significance of the withheld evidence, suggesting that the undisclosed information could undermine Springfield’s position. The dispute involves substantial investments, with ENI and Vitol having invested $6.2 billion in an offshore oil and gas project, including the Sankofa Cenomanian Oilfield.
The portal reported that representatives for ENI Ghana and Vitol Upstream declined to comment, while representatives for Baker Hughes, Gaffney Cline, and Springfield did not respond to requests for comment. Eni Ghana and Vitol Upstream Ghana are represented by Luke A. Sobota of Three Crowns LLP.
