Unitize to attract investors into upstream petroleum sector – IES to ENI and Springfield
•The IES is pushing for the unitization of Springfield and ENI as directed by the government of Ghana.
•the move will act as an effective response to the global investments towards green energy, according to the IES.
•The IES’ further argues that unitizing will help attract investors into Ghana’s energy sector
The Institute for Energy Security’s (IES’) says Eni Ghana Exploration and Production Limited (ENI) and Springfield E&P (Springfield) must, with immediate effect, see through signing their Unitization and Unit Operating Agreement (UUOA) to complete the unitization of the Afina and Sankofa fields as directed by the Government of Ghana.
According to the organization, available data in the first quarter of 2021 shows that unitization of the two entities working in Ghana’s petroleum fields may well be one of the many responses to the possible stranded hydrocarbon assets from the global energy transition and will, in the end, attract investment into the upstream petroleum sector from the coming green revolution.
In a release copied to GhanaWeb, the IES noted the shift in global investments towards green energy and solutions, hence the urgent need for ENI and Springfield to drill out Ghana’s crude while there is still demand.
“As a result, any delay on the part of ENI and Springfield to unitize their respective fields to maximize oil production may deprive the country the opportunity to maximize its earnings from oil and gas.”
“Additionally, any further delay to explore the Afina oil discovery tied to the Sankofa production could result in funding challenges for the oil companies in the future, as we see substantial amounts of global capital being directed at renewable energy projects, away from the traditional sources known as fossil fuels (including oil and gas),”
The IES further emphasises that the Government of Ghana, ENI and Springfield cannot ignore the transition in the energy market and must thus ensure the unitization which it argues will also “help build an indigenous Ghanaian company with operatorship capacity to hold the fort while multinationals begin to move out of the country’s hydrocarbon business for greener pastures”.