As Government of Ghana has begun with process of taking over Springfield Exploration and Production’s Afina-1x oil well in the West Cape Three Points Block 2, through the Ghana National Petroleum Corporation (GNPC), there is a heightened debate among stakeholders as the well is characterised as one of the country’s most contentious undeveloped oil fields.
According to an official statement from the Ministry of Energy and Green Transition, the Ghana National Petroleum Corporation (GNPC), together with its upstream subsidiary GNPC Explorco, is in constructive discussions with Springfield as part of a strategy to safeguard petroleum assets and prevent economically viable reserves from remaining stranded.
The move, aimed at boosting national oil production, which has been declining in recent years, is being contested by energy sector players. The Africa Centre for Energy Policy (ACEP) has expressed concerns over the potential acquisition, arguing it’s a bad move for Ghana’s financial interests.
ACEP’s Executive Director, Ben Boakye, suggests the government should focus on enforcing contractual obligations rather than spending public funds on non-performing assets ¹.
Key Concerns:
ACEP emphasizes that the government should reclaim the oil block instead of purchasing it, citing Springfield’s failure to meet contractual obligations, noting that the acquisition could divert scarce public resources from more pressing needs, given Ghana’s economic hardship and poverty levels.
However, the government argues that the takeover is necessary to prevent valuable resources from remaining idle due to prolonged commercial or operational bottlenecks. Ghana’s crude oil production has been on a decline, dropping from over 200,000 barrels per day in 2019 to around 150,000 barrels per day currently.
Apparently, ACEP’s Executive Director, Ben Boakye, argues that the WCTP2 asset already belongs to the state and should be reclaimed, rather than purchased.
He further criticized ongoing negotiations between GNPC, its upstream subsidiary Explorco, and Springfield, describing efforts to predetermine a valuation of up to US$1.1 billion as unreliable and based on “discredited data.”
Ben Boakye in a social media post warned that the government cannot continue financing non-performing oil assets at a time when economic hardship and poverty levels are rising.
His comments come as the government confirms it has begun formal processes for a possible state-led takeover of the Afina field – one of Ghana’s most contentious undeveloped oil discoveries.
Government’s Response
The government has initiated a procurement process to hire an independent Technical Consultant and Transactional Advisor to ensure transparency and technical rigor. The advisors will conduct a comprehensive technical evaluation of the WCTP2 block, audit past expenditures, and provide an independent valuation of Springfield’s interest.
The mandate of the consultant and advisor includes coming up with a comprehensive technical evaluation of the WCTP2 block, a full audit and verification of past expenditure, as well as a financial and commercial due diligence report
In addition, they are to carry out an independent valuation of Springfield’s interest.
These independent assessments, according to the government, are to ensure a fair and commercially sound basis for any potential takeover.
The government’s plan includes repositioning the asset for faster development, potentially in partnership with experienced deep water operators.
“This approach ensures that all decisions are evidence-based, commercially prudent, and in the best interest of the Republic of Ghana”, part of the statement signed by Richmond Rockson, Spokesperson and Head of Communication at the Ministry of Energy and Green Transition, mentioned.
These processes, the statement says, are being conducted without prejudice to ongoing investigations involving Springfield or related entities, and that institutional independence remains fully upheld.
The push for intervention follows years of stalled progress on the Afina field, despite its confirmed discovery, as Ghana’s oil production declines with global transition reshaping upstream investment.
The statement further reiterated the government’s commitment to local content and indigenous participation, noting that any future development of WCTP2 will be aligned with national policy to build a competitive Ghanaian-led oil and gas sector.
Uncertain outcome
The outcome of this takeover bid remains uncertain, but one thing is clear: Ghana’s energy sector is at a critical juncture, and the government must balance its desire to boost oil production with concerns about transparency and accountability.
The Afina field has seen years of stalled progress despite its confirmed discovery, as global energy transition pressures reshape upstream investment and Ghana battles falling oil production.
By Adnan Adams Mohammed
