The Africa Centre for Energy Policy (ACEP), has issued a formal statement to clarify its stance on Springfield Exploration & Production Limited’s Afina-1x appraisal programme.
This, follows recent media engagements in Washington, D.C., during the International Monetary Fund (IMF) and World Bank Annual Meetings, where ACEP’s Executive Director, Benjamin Boakye, addressed critical challenges facing Ghana’s petroleum upstream sector.
The comments which were apparently misquoted by the media, energized Kevin Okyere, to organise a quick press conference to harp on the use of appraisal report, instead of appraisal programme to attack the Executive Director of ACEP.
However, after ACEP laid the issues bare, pointing at data presented as part of the appraisal programme, silence and peace have visited the data concerns in the communication of Springfield. They have resorted to the old narrative on appraisal reports which has been clarified.
The statement signed by Kodzo Yaotse, Policy Lead for Petroleum and Conventional Energy at ACEP, highlighted the broader governance failures that have contributed to the ongoing struggles in Ghana’s oil and gas sector. Over the past few years, Ghana has witnessed a steady decline in oil production and a significant drop in exploration investments.
These trends, according to ACEP, have exacerbated the country’s fiscal challenges. One of the key issues underscored by the Executive Director was the Ministry of Finance’s over-reliance on optimistic oil production forecasts to underpin significant borrowings. These projections were based on assumptions that high oil production would generate the revenue needed to meet Ghana’s financial commitments, including servicing debts to financial markets and development banks. However, these projections have consistently failed to materialize, largely due to ineffective policies and governance challenges that have prevented the growth of the oil industry.
The centre argued that one of the primary reasons for the sector’s underperformance is the lack of sound policies to foster growth and attract investment. Ghana’s upstream oil industry, once considered promising, has become less attractive to investors.
The country’s regulatory and policy environment has not been conducive to investment, leading to lower exploration activity. ACEP emphasized that the government’s approach to addressing technical challenges in the sector has been flawed.
Instead of applying scientific methods to solve problems, the government has often resorted to litigation, a strategy that has yielded poor results. This culminated in an embarrassing arbitration defeat in July 2024, where Ghana was portrayed as incapable of interpreting its own laws correctly.
The loss further damaged the country’s reputation and demonstrated the need for a more strategic approach to managing the sector.
Specific to the Afina-1x appraisal programme submitted by Springfield, ACEP raised several concerns regarding the data presented and the cost implications of the proposed re-entry into the well.
According to ACEP, Springfield’s appraisal programme contained data inconsistencies that differed significantly from the data used by the government to determine Tract Participation (TP) in the unitization directive.
This directive awarded Springfield and its partners 54.545% of the Afina field, while Eni and its partners were allocated 45.455%. Notably, Springfield’s estimate of the Oil Water Contact (OWC) at 3958 meters differed from the 4130 meters used by the Ministry of Energy to calculate the Stock Tank Oil Initially In Place (STOIIP) volume, which was estimated at 642 million barrels.
Had Springfield’s OWC data been used from the outset, ACEP argues, it would have likely been concluded that the Afina discovery required further appraisal work to assess its commercial viability, rather than rushing into the unitization process. This inconsistency has led to wasted time and resources, prolonging the dispute and delaying the development of the field.
Another critical issue raised by ACEP was the cost of the appraisal programme, particularly the $50 million proposed for re-entering the Afina well to assess reservoir productivity and potential pressure changes. ACEP questioned the timing of this appraisal, noting that it would have been more cost-effective to conduct reservoir flow tests during the original drilling campaign when hydrocarbons were first encountered.
The decision to delay the well test has increased costs for Ghana National Petroleum Corporation (GNPC) and Explorco, which are partners in the Afina field. ACEP viewed this as a regulatory failure on the part of the Petroleum Commission and the Ministry of Energy, which have allowed unnecessary financial burdens to be placed on Ghana.
Additionally, ACEP contended that the re-entry well test proposed by Springfield should not be considered an appraisal programme within the context of Act 919. The Act requires that an appraisal programme delineates the extent of hydrocarbon accumulation and determines the commerciality of a discovery. According to ACEP, the well re-entry falls short of this requirement and instead appears to be an attempt to salvage a discovery whose commercial viability remains uncertain.
ACEP also expressed concerns about the unitization objective of Springfield’s appraisal programme, which aims to establish connectivity between the Afina and Sankofa fields, as required for the unitization process. Given the recent arbitration ruling, ACEP believes that any studies to confirm connectivity should have involved collaboration with Eni, the other party in the unitization dispute.
A joint effort would have enhanced the credibility of the process and avoided further disputes. Collaboration between the parties would have been more effective in addressing the technical issues related to dynamic communication between the fields and determining the commerciality of the Afina discovery. This would have saved time and eliminated uncertainties, providing a clearer path forward for both fields’ development.
ACEP emphasized that its positions on these issues are not intended to harm Springfield or its interests but are driven by a commitment to the national interest. The centre reiterated its mandate to promote transparency and defend public interest in Ghana’s oil and gas sector. It expressed concern that recent governance failures and political interference have undermined the sector’s potential, creating an environment where hidden interests take precedence over sound policy and investment.
The statement concluded by noting that Ghana’s upstream oil industry is at a critical juncture. As the global energy landscape shifts toward decarbonization, the country must ensure that its oil and gas sector remains competitive and transparent. Failure to address the governance challenges and regulatory failures in the sector could lead to stranded assets and missed opportunities.
ACEP called on the government to adopt policies that are transparent, investor-friendly, and aligned with global energy trends. Only by doing so can Ghana restore confidence in its upstream petroleum sector and secure its future in an increasingly decarbonized world.
Meanwhile, Springfield Exploration and Production Limited has launched a new appraisal campaign on the Afina 1-x field in line with the demands of the international arbitration tribunal.
In its ruling in July 2024, the international arbitration tribunal called for further works before the unitisation of the Afina and Sankofa fields due to evidence that both fields belong to the same reservoir.
The arbitration had stalled Springfield’s efforts since the company first made the discovery of hydrocarbons in the field five years ago.
Springfield in partnership with the Ghana National Petroleum Corporation (GNPC) announced the arrival of a semi-submersible rig, Deepsea Bollsta, to begin a month-long appraisal of the oil block located offshore in the Western Region.
“We are complying with the directives and we are going ahead to drill this appraisal well so that we can finally finish and stop the decline of Ghana’s production and hopefully help add more production to the oil and gas industry in Ghana,”
Springfield’s Chief Executive Officer (CEO), Kevin Okyere told a media briefing to announce the start of the process. Mr Okyere expressed the company’s excitement at the beginning of the process, adding that a successful completion could add some 50,000 barrels per day (bpd) to national production.
“I am pleased to announce that the Mobile Offshore Drilling Unit, the Deepsea Bollsta, has arrived in Ghana and commenced re-entry and the Drill Stem Test of Afina 1-x in line with the Appraisal Programme,” he explained.
“This exercise will take about a month to six weeks due to how complicated and complex these operations are,” the CEO explained.
Mr Okyere also dismissed as false the statement that the appraisal had been done and the results were not in line with the unitisation directive.
“There is no such evidence. The rig just got down a few days ago. We haven’t even gotten anywhere. We just started mobilizing and doing the work,” he said.
“The rig just got to Ghana a few days ago. We just commenced implementation of our appraisal programme and we are yet to acquire the relevant data from our appraisal activities, process the said data and submit our appraisal report,” he affirmed.
He said the company’s lawyers understood were actually writing to the person to apologize and retract the statement to avoid legal action.
“We are very optimistic that within the next six months, after completion, we will start making some positive progress and helping add more production to Ghana’s produce,” he added.
Assets Head, West Cape Point Three (WCPT) Block 2, Jerry Greenfields of GNPC, praised the swift mobilisation: “Within the space of three months, we are able to mobilize this rig. It is a feat that is rarely achieved by the major companies. They are not able to mobilize that quickly.”
Springfield has invested heavily in the appraisal, committing approximately US$65 million to the campaign, taking its total expenditure overall to over US$200 million, the CEO said.
Dr. Thomas Manu, Springfield’s Vice President of Exploration and Production explained that the DST will assess the flow rate of the well.
“We will measure the rate, shut it in for a period of time, let the pressure build up again, and then open it again a number of times. And then we believe that we will satisfy that condition that was required by the court,” he stated, whilst assuring stakeholders that it will adhere to stringent safety protocols.
