Blasted For Premature Victory Claim in Ghana’s ENI/Vital Dispute
The International Arbitration Tribunal’s resolution on the case involving Ghana and its national oil company, Ghana National Petroleum Corporation (GNPC), against Italian investors ENI Ghana Exploration and Production Limited and Vitol Upstream Ghana Limited has stirred controversy.
In a 145-page verdict concluded on September 2021, the London-based International Court of Arbitration (ICA) ordered Ghana to pay €189,000, representing 50% of the claimants’ expenses to the Swedish Chamber of Commerce.
The tribunal dismissed the claimants’ request for damages. Attorney General and Minister for Justice Godfred Yeboah Dame celebrated the outcome, claiming a triumph for the government as the tribunal dismissed all claims for compensation.
However, critics, including industry experts and political figures, questioned the legitimacy of this victory. Some observers, such as the Executive Director of the Africa Centre for Energy Policy (ACEP), Benjamin Boakye, labeled the $7 billion claim as misleading and criticized the government’s handling of the arbitration process.
They emphasized the need for a more cautious and informed approach in future decisions within the oil and gas sector.
The Minority in Parliament also expressed skepticism over the government’s representation of the ruling, cautioning against hasty decisions and urging a diplomatic solution to the dispute between Springfield, Vitol, and ENI to safeguard Ghana’s oil industry.
They accused the government of distorting the facts and misleading the public. Eni Ghana Exploration and Production welcomed the tribunal’s ruling, asserting that the government’s unitization directives were deemed unlawful, granting them the right to seek damages if the directives are enforced in the future.
As the fallout continues, Vitol Upstream Ghana Limited is yet to make a public statement regarding the arbitration outcome.
The conflicting interpretations of the tribunal’s decision underscore the complexity of the dispute and its implications for Ghana’s oil sector.