The Ghanaian government is in discussions to acquire Springfield E&P's 84% operating stake in the West Cape Three Points 2 (WCTP2) block, which contains the significant Afina oil and gas discovery. This initiative is part of a state-led effort to accelerate the development of the asset, as Springfield has not progressed towards development following a successful appraisal well drilled last year. The government aims to resolve this stagnation to revitalize the country's upstream oil and gas sector.

Parties and Stakes Involved

The Ghana National Petroleum Corporation (GNPC) and its upstream subsidiary, GNPC Explorco, are engaged in constructive discussions with Springfield for the potential takeover. GNPC and GNPC Explorco currently hold 11% and 5% stakes, respectively, in the deepwater block, which was awarded to Springfield in 2016.

Government Strategy and Rationale

This move forms part of a broader government strategy to safeguard national petroleum assets, optimize upstream output, and prevent valuable resources from remaining stranded due to commercial or operational bottlenecks. The ministry cited Ghana's falling oil production and uncertainties around the energy transition as reasons for the urgent need to develop WCTP2's resources, stating that a timely intervention is essential to unlock the block's long-term economic value.

Acquisition Process and Due Diligence

To ensure a rigorous, transparent, and professionally-grounded acquisition process, the government will appoint independent technical and transactional advisors. Their mandate will include:

1. A comprehensive technical assessment of the WCTP2 block.
2. A full cost audit and verification of past expenditures.
3. Financial due diligence.
4. An independent valuation to determine the fair and equitable value of Springfield's stake.

This evidence-based approach aims to ensure all decisions are commercially prudent and in Ghana's best interest.

Asset Repositioning and Development Plans

The intention is to reposition the asset for accelerated development, potentially through partnerships with technically strong and experienced deepwater operators. The Afina discovery lies in about 1000 meters of water. After its discovery in 2019, Springfield reported it held 1.5 billion barrels of oil in-place and 700 billion cubic feet of gas, though no updated resource number was provided after last year's appraisal well.

Historical Context and Dispute

The Afina discovery was previously at the center of a dispute between Springfield and Eni. In April 2020, the Ghanaian government issued a directive to unitise the discovery with Eni's producing Sankofa field in the adjacent Offshore Cape Three Points block. However, an international tribunal ruling in July of last year found that the government, under then-head of state Nana Akufo Addo, had no right to impose such a unitisation agreement.