Renewed engagement crucial in resolving unitisation dispute – PIAC

By Isaac AIDOO, Accra

In the wake of a landmark decision by an international tribunal, Technical Manager at the Public Interest and Accountability Committee (PIAC), Mr. Mark Agyeman, has called for renewed engagement between Eni Ghana, Vitol Energy, and the Ghana National Petroleum Corporation (GNPC).

 The tribunal’s ruling favoured Eni Ghana, declaring that the unitisation directives imposed by Ghana’s Ministry of Energy were unlawful and violated both Ghanaian law and the terms of the Offshore Cape Three Points (OCTP) Petroleum Agreement.

Tribunal’s ecision and its implications

The tribunal’s decision emphasized that Ghana had breached clauses in the petroleum agreement, rendering the unitisation directives null and void.

Eni Ghana responded to the ruling with a press statement, reaffirming their commitment to Ghana and the OCTP project, which is crucial in supplying a significant portion of the country’s domestic gas needs.

Speaking on Zed 101.9FM, Mr. Agyeman highlighted the need for immediate dialogue. “The Tribunal is telling us that we have breached clauses in the petroleum agreement as a country and so we don’t have a case. The directive to unitize is null and void. We need to come back to the table,” he stated. He stressed the importance of involving technical experts from Eni, Vitol, GNPC, and relevant stakeholders to address the issue comprehensively.

Historical context of dispute

Mr. Agyeman provided background on the dispute, explaining that Eni made a discovery at OCTP, followed by Springfield’s discovery at the Afina field in the Westgate 3.2 block.

Initial analyses by Springfield and the government suggested that the oil straddled both the Eni and Springfield fields.

Industry experts called for further data analysis and the drilling of an appraisal well to confirm the extent of the discovery.

Eni conducted its own independent analysis and proposed that both parties share their findings and engage in a collaborative discussion.

However, during this period, then-Minister for Energy, Mr. Peter Amewu, issued a directive for the fields to be unitized, a decision Eni strongly opposed, citing the need for more data analysis.

Govt’s reluctance and legal battle

According to Mr. Agyeman, the Ghanaian government was reluctant to engage amicably with Eni, leading to a legal battle in the Ghanaian courts.

Eni warned that they would seek international arbitration if the government did not soften its stance.

The tribunal’s recent decision underscores the consequences of breaching stabilization clauses in petroleum agreements.

Way forward

Despite the dispute, Eni continues to operate in Ghana, and negotiations for a new petroleum agreement are ongoing.

Mr. Agyeman emphasized the need for collaboration and technical expertise to resolve the issue.

 “We need to come back to the table and let the technical men do their work,” he urged.

The call for engagement marks a critical juncture in Ghana’s oil and gas sector, with the potential to set a precedent for how similar disputes are managed in the future.

As the stakeholders prepare for discussions, the focus will be on ensuring transparency, technical accuracy, and mutual cooperation to foster a sustainable and productive partnership.