ACEP urges government to halt Springfield Oil takeover plans

By Maame Efua Kwaduah

The Executive Director of the energy think tank Africa Centre for Energy Policy (ACEP), Benjamin Boakye has urged government to halt what it describes as an expensive and needless move by the Ghana National Petroleum Corporation (GNPC) to take over Springfield Exploration and Production’s stake in the Afina-1x oil discovery.

According to him, the deal has no commercial merit.  He stressed that the West Cape Three Points Block 2 (WCTP2) asset already belongs to the state and should be retrieved rather than bought since Springfield failed to meet its contractual obligations.

He also criticised ongoing discussions among GNPC, its upstream arm Explorco and Springfield, saying attempts to pre-arrive at a valuation of up to US$1.1 billion are unreliable and based on “discredited data.”

In an X post, Mr. Boakye cautioned that government cannot keep funnelling money into non-performing oil assets at a time of worsening economic hardship and rising poverty.

“From every objective assessment, acquisition of Springfield’s asset is a bad move. Here’s why:

1. The oil block belongs to the state. Contractors are supposed to take the risk and share benefits only when they succeed.

2. When contractors fail, the state’s duty is to reclaim its asset not underwrite the losses of private companies.

3. The claim that GNPC and Explorco are engaging Springfield in “constructive discussions” on a possible takeover is even more troubling. Both entities know the facts too well, but their track record undermines their credibility,” he wrote.

His comments follow government’s confirmation that it has begun formal processes for a potential state-led takeover of the Afina field one of Ghana’s most disputed undeveloped discoveries.

According to a statement from the Ministry of Energy and Green Transition, GNPC and GNPC Explorco are in “constructive discussions” with Springfield as part of efforts to secure national petroleum assets and prevent potentially viable reserves from lying idle as Ghana’s oil production declines.

To promote transparency, the Petroleum Commission and GNPC have started procurement processes to hire an independent Technical Consultant and Transaction Advisor. Their work will include:

1. Full technical assessment of the WCTP2 block

2. Audit and verification of previous expenditure

3. Commercial and financial due diligence

4. Independent valuation of Springfield’s stake

The Ministry said these reviews will ensure any takeover decision is commercially justified and help reposition the field for quicker development, potentially with experienced deep-water partners.

It added that these actions do not interfere with ongoing investigations involving Springfield or related parties and reaffirmed government’s commitment to institutional independence

Government further noted that any future development of the block will be aligned with Ghana’s local content policy to deepen indigenous participation in the petroleum sector.

The Afina field has suffered years of delays despite its confirmed discovery, as global energy transition pressures reshape upstream investment and Ghana continues to battle falling production.