The Minority in Parliament has asked President Akufo-Addo to step into the legal impasse between Italian oil giant, ENI and its Offshore Cape Three Point (OCTP) partners, Vitol and Ghanaian-owned Company Springfield E&P, in what could result in Ghana being slapped with a US$ 7 billion judgment debt.
In a statement, the Minority warns that the legal impasse which is the result of a 2020 directive by then Energy Minister, John Peter Amewu, could result in aUS$7billion judgment debt for Ghana.
“We note that the current impasse has also led to a bitter legal dispute resulting in a Ghanaian court order directing ENI/Vitol to deposit 30% of its monthly revenue into an escrow account pending unitization,” the Minority stated.
“We are also aware that ENI/Vitol has commenced legal action in the International Court of Arbitration seeking damages of about $7 billion against the Government of Ghana,” the Minority said in a statement signed by the Ranking Member on the Mines and Energy Committee of Parliament, John Jinapor.
It would be recalled that in April 2020, then Energy Minister, John Peter Amewu, directed ENI/Vitol and Springfield Ghana to execute a Unitisation and Unit Operating Agreement (UUOA) at the Sankofa and Afina fields.
Unitization is the combined operation of an oil and gas field by the different holders of the rights to the petroleum resources in the individual tracts on top of a petroleum reservoir.
In this case, it is compulsory unitization with the argument that the two oil wells straddle. ENI/Vitol has since resisted it leading to Springfield going to court to enforce the Minister’s directive.
In June 2021, a High Court presided over by Justice Mariama Sammo (MS) ordered ENI and Vitol, to set aside 30 percent of oil proceeds from the Sankofa Field in an escrow account, pending the final determination of the application by Springfield E&P.
Eni and Vito were expected to pay an amount of approximately $40million a month which will be directed to an account agreed by both parties.
The Minority warns the impasse has worsened even as Ghana’s oil exploration, in general, has also worsened warning the last anybody wants is to additionally saddle Ghana with a US$ 7 billion judgment debt.