Minority worried over looming judgement debt in Eni-Ghana, Springfield unitisation impasse

0
14
minority-worried-over-looming-judgement-debt-in-eni-ghana,-springfield-unitisation-impasse

The Minority in Parliament says it is gravely concerned that a protracted impasse between ENI/Vitol and Springfield Ghana will land the country in a 7 billion dollar judgment debt.

The caucus says President Akufo-Addo must immediately intervene in the matter to avert the looming debt.

ENI/Vitol challenged a decision of then Energy Minister, John Peter Amewu, for a Unitization and Unit Operating Agreement with Springfiled Ghana, at the Sankofa and Afina fields.

ENI/Vitol said the decision was premature and did not meet industry standards.

A legal tussle subsequently ensued, with ENI/Vitol eventually initiating action in the International Court of Arbitration for 7 billion dollars against the Government of Ghana.

But the Minority says the development is not progressive for the sector.

A statement signed by a ranking member of the Mines and Energy Committee, John Jinapor, says the dispute was avoidable and has negative implications for attracting investment into the oil sector.

The statement says the Unitisation process was poorly managed, leaving a blemish on Ghana in the oil and gas sector.

“So, the last thing the government should be contemplating is to watch their reckless decision to wilfully cause Ghanaians an avoidable judgment debt to a gargantuan tune of $7 billion.”

“The dispute with ENI requires tactful leadership, which is unfortunately not forthcoming from this government,” the statement said.

Eni Ghana dragged Ghana to the London Tribunal over these tensions.

In Ghana, a court ordered the government to halt payments to Eni and Upstream Limited, amidst the ongoing legal dispute.

The Commercial Division of the Accra High Court ordered the operators of the Sankofa Oil Field to preserve 30 percent of all the revenues which will be accrued from the field until the final determination of the legal dispute relating to it.

The 30 percent revenue must be paid by the operators, Eni and Vitol into an account agreed by all the contesting parties.

Eni Ghana unsuccessfully appealed the case and then filed a suit at the International Tribunal in London, United Kingdom, to challenge a directive by Ghana’s Ministry of Energy, asking them to unitise the Sankofa offshore oil field and Afina oil block.

The post Minority worried over looming judgement debt in Eni-Ghana, Springfield unitisation impasse appeared first on Citinewsroom – Comprehensive News in Ghana.

LEAVE A REPLY

Please enter your comment!
Please enter your name here