Springfield block takeover: Government must ensure value for money-Energy Expert
By Maame Efua Kwaduah
The Executive Director of the Centre for Energy and Sustainable Development, Benjamin Nsiah, has noted that the government’s planned intervention in the West Cape Three Points Block 2 asset carries both major opportunities and significant risks for Ghana’s energy sector.
He said the move could help revive Ghana’s declining upstream sector because it signals renewed commitment to capital investment that can increase output at a time when production has fallen significantly.
The Government of Ghana, through the Ghana National Petroleum Corporation, has already begun steps toward a potential state-led takeover of Springfield Exploration and Production’s Afina-1X oil discovery in the West Cape Three Points Block 2.
According to the Ministry of Energy and Green Transition, GNPC and its upstream subsidiary GNPC Explorco are in constructive discussions with Springfield as part of efforts to secure petroleum assets and prevent viable reserves from remaining stranded.
To ensure transparency and technical rigour, the Petroleum Commission and GNPC have initiated a procurement process to hire an independent technical consultant and a transactional advisor to deliver a full technical evaluation of the block, verify past expenditure, carry out commercial due diligence, and independently value Springfield’s interest.
The ministry says these assessments aim to establish a fair and commercially sound basis for any takeover and to reposition the asset for faster development in partnership with experienced deep-water operators.
According to Mr. Nsiah such investments can also prevent job losses during operational disruptions, placing the state in a stronger position to sustain technical employment and mobilize the revenue needed to create more jobs. He noted that private-sector financing from abroad could contribute to economic growth, while local economies in affected communities would gain relief after years of inactivity in the field.
He noted that the intervention is linked to prolonged commercial and operational challenges, including the lack of transparent appraisal data for the block. He explained that the industry still does not have clear appraisal figures, which poses a major risk because the government must ensure value for money before taking over.
He cautioned that without accurate appraisal outcomes, the state could commit resources to a field that may not deliver the expected yield, exposing the economy to unnecessary risk. He said clarity is needed on whether government intends to pursue a full or partial takeover and the level of investment required.
He said the move has the potential to strengthen local capacity if proper processes are followed and the field shows positive yields. He explained that Ghana’s local content policy already mandates strong local participation in upstream and downstream operations, meaning many Ghanaians will be engaged once activity resumes. He added that the intervention does not hinder foreign investment, and that Springfield’s lack of capital and resources is what has led to the handover. He said Ghanaian investors with the financial strength to support development of the block are free to partner with the state.
He advised that government’s decision should rely strictly on technical appraisal. He said the state should only proceed if yields are positive; otherwise, it risks investing in an unproductive project that could become a burden on the economy.
