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 strategy to accelerate the development of the asset, which has stalled despite a successful appraisal well drilled by Springfield last year. The government aims to resolve this stagnation to revitalize the country's upstream oil and gas sector.

Rationale for State Intervention

The government's move is driven by the urgent need to develop the WCTP2 block's resources amidst Ghana's falling oil production and uncertainties related to the energy transition. The Ministry of Energy stated that a timely intervention is essential to prevent further delays and unlock the block's long-term economic value, ensuring that valuable national petroleum assets are not left stranded due to commercial or operational bottlenecks.

Proposed Acquisition Process

To ensure a rigorous and transparent process, the government will appoint independent technical and transactional advisors. Their mandate includes a comprehensive technical assessment of the block, a full cost audit and verification of past expenditures, financial due diligence, and an independent valuation to determine the fair and equitable value of Springfield's stake. This evidence-based approach is intended to ensure all decisions are commercially prudent and in Ghana's best interest.

Asset Repositioning and Historical Context

Following the acquisition, the intention is to reposition the asset for accelerated development, potentially by partnering with technically strong and experienced deepwater operators. The Afina discovery, located in about 1000 meters of water, was announced in 2019 with initial in-place resources of 1.5 billion barrels of oil and 700 billion cubic feet of gas. The discovery was previously at the center of a unitisation dispute with Eni regarding its adjacent Sankofa field, which an international tribunal ruled in July of last year the government had no right to impose.