GNPC, ENI strengthen ties to boost Ghana’s energy sector
THE Ghana National Petroleum Corporation (GNPC) and Italian energy giant ENI have reaffirmed their commitment to strengthening collaboration to drive growth in Ghana’s energy sector.
This follows a high-level meeting between GNPC’s Chief Executive Officer, Edward Bawa, and ENI representative Maurizio Pinna at the Corporation’s headquarters in Accra.
The discussions, which form part of Mr. Bawa’s early engagements with key industry partners, explored new areas of cooperation to maximize oil and gas production while ensuring environmental sustainability. The GNPC CEO emphasized the need for strategic alliances to enhance efficiency and create value across the petroleum value chain.
ENI executives expressed confidence in GNPC’s leadership and reiterated their commitment to deepening engagement with the Corporation. The talks centered on improving ties between the two entities, optimizing existing assets, and identifying new opportunities for joint initiatives and future exploration projects.
The renewed partnership aligns with GNPC’s broader vision of ensuring Ghana’s energy security while driving economic growth. Both parties are optimistic that their strengthened cooperation will contribute to the long-term sustainability and advancement of the country’s energy sector.
Eni has been the operator of the OCTP (also known as Sankofa and Gye-Nyame) fields since 2009 with participating interests of Eni Ghana – 44.44%, Vitol – 35.66% and GNPC – 20%. The OCTP project is the single largest foreign investment, USD7 billion, in Ghana with plans for further investment.
It will be recalled that on April 9, 2020, the Minister of Energy (MoE) issued a directive that Eni and Vitol agree with Springfield within 120 days on the terms of a Unitization and Unit Operating Agreement (“UUOA”) to produce and develop the Afina discovery (WCTP 2 Block) and the Sankofa Cenomanian field (OCTP Block) as a single unit.
According to the MoE, the directive to unitise both fields was to ensure optimum exploitation and recovery of the hydrocarbon resources of the fields, consistent with section 34 of the Petroleum (Exploration and Production) Act, 2016 (Act 919).
Following the directive, Eni sought relevant data regarding the Afina Discovery; however, the MoE refused the request to supply this data. Efforts to engage in consultations and discussions aimed at reaching a consensus on the matter were unsuccessful, as Springfield appeared to lack the readily accessible data necessary for unitization.
In 2021, Ghana’s Attorney General and Minister of Justice received formal notification regarding the initiation of arbitration proceedings under the United Nations Commission on International Trade Law (UNCITRAL).
This action was taken by Eni/Vitol against the Republic of Ghana and the Ghana National Petroleum Corporation (GNPC) for alleged violations of the OCTP Petroleum Agreement.
The arbitration hearing took place in August 2023, and on July 8, 2024, Eni Ghana/Vitol obtained a favourable ruling from the Arbitral Tribunal concerning the unitization dispute with the Republic of Ghana. The Tribunal’s decision supported Eni and Vitol’s longstanding opposition to the Unitization Directives.
The Arbitral Tribunal upheld the position of Eni Ghana/Vitol, determining that the Unitization Directives issued by the Minister of Energy regarding the Sankofa Field, and the Afina Discovery were wrong and unlawful. Furthermore, it found that the actions of the Republic of Ghana violated both Ghanaian law and the provisions of the OCTP Petroleum Agreement.
