The Minister of Energy and Green Transitions, John Jinapor, has mounted a vigorous defence for a state-led takeover of troubled Springfield Exploration and Production Limited’s (SEP) stake in the West Cape Three Points Block 2 (WCTP2) if its oil well meets strict technical and commercial criteria.

But many, including the Africa Centre for Energy Policy (ACEP), see the development as an attempt to bail Kevin Okyere out of a financial crisis he is facing. He is heavily in debt to both Ghanaians and foreigners, with many suggesting he should file for bankruptcy while his company, Springfield Exploration and Production Limited (SEP), undergoes liquidation.

It has been revealed that earlier this year, officials from Springfield and Explorco tried to value Springfield’s assets between US$433 million and US$1.1 billion, but the Petroleum Commission, led by Emefa Hardcastle, rejected the evaluation.

Worldwide Petroleum Consultants, Netherland, Sewell & Associates, Inc., according to documents sighted by The Herald findings, was engaged by the Springfield and GNPC for the analysis and advised the Mahama government, but they were given 5-year-old data dated October 14, 2020, to estimate the viability of the Springfield’s oilfield in June 2025.  

Sewell & Associates, wrote that “The raw geoscience data for the OCTP Block were not available for this evaluation; therefore, we have estimated the original oil-in-place (OOIP) and the SEP post-unitization interest in Afina-Sankofa Field for each resources category using the Ghana National Petroleum Corporation (GNPC) October 14, 2020, independent estimate of OO1P of 535 million barrels for the OCTP Block, as provided by SEP, and our range of independent estimates of OOIP for the WCTP-2 Block”.   

The document was addressed to Kwadwo Boateng Aniagyei of Springfield Exploration and Production Limited and Samuel Opoku Arthur of GNPC Exploration & Production Limited Company. It confirmed a deliberate attempt to mislead the Mahama government into parting with almost US$800 million for the empty well.

The ongoing Springfield deal is similar to the Akufo-Addo government’s failed attempt in 2021 to raise $1.65 billion to buy Aker Energy’s 37 percent stake in the Deepwater Tano/Cape Three Points (DWT/CTP) and its 70 percent interest in SDWT, also known as the Pecan oilfield. 

The well in question, known as Afina-Sankofa Field, Offshore Cape Three Points (OCTP) Block and West Cape Three Points Block 2 (WCTP-2 Block), Afina, was one of three wells drilled by Cosmos Energy in the area. It has always been controversial since it was transferred to Springfield during the first Mahama administration. This happened after Cosmos surrendered it to the state to focus on other nearby wells that were considered more viable.

Since Springfield assumed control of the well, the company has struggled to implement necessary measures, especially to meet financial requirements for drilling. Springfield has also repeatedly violated regulatory requirements, with the Petroleum Commission (PC) consistently demanding that it complies with the terms and conditions outlined in Section 52 (3) of the Petroleum (Exploration and Production) Act, 2016, Act 919, which requires the operator to “provide to the Commission data and information as well as the reports, studies, interpretations, and analyses.”

However, the Energy Minister, insists that the Mahama government will only support a state-led takeover of Springfield Exploration and Production Limited’s (SEP) stake in the West Cape Three Points Block 2 (WCTP2) after an independent and transparent valuation confirms the field’s strong commercial prospects.

Speaking on Joy FM’s Super Morning Show on Friday, Mr Jinapor, confirmed that Springfield had approached the government, the Ghana National Petroleum Corporation (GNPC), and Explorco for support as part of ongoing discussions about the struggling asset.

He said that objective, technical, and commercial assessments must guide any decision on state involvement, emphasizing the due diligence process the government intends to follow.

“Springfield is a Ghanaian company. They’ve invested so much,” he said. “Where they have gotten to, they think they will need some support. As minister, what I will do is that I want an independent, fair valuation of that field.”

The transfer of the Afina well to Springfield took place during the tenure of Alex Mould as GNPC boss, Emmanuel Armah-Kofi Buah as Power Minister, with Jinapor as his deputy minister, serving in the Mahama administration.

A long list of Ghanaian politicians from both sides of the political divide, have pumped their money into the venture without any hope of recovering their investment, despite assurances from sweet-talking Mr Okyere.

To salvage the situation, John Peter Amewu, Akufo-Addo’s Energy Minister, authorized the Unitisation between Springfield Exploration and the Italian oil company, ENI, which the Italians rejected.

Springfield Exploration took the case to the Ghanaian court and won, but the ruling became irrelevant after ENI pursued international arbitration in London and was successful. This happened after it became clear that ENI wouldn’t get justice in the Ghanaian court.

There are conflicting claims about how much Kwame Addo, a prominent businessman from the Oti Region and supplier of the Ghana Armed Forces (GAF), has invested in Springfield.  Some have mentioned US$30 million, while others put it at US$50 million. Multiple claims have been made that Kwame Addo, who is close to influential figures in and outside the Mahama government, has been exerting pressure on the state through officials to acquire Springfield’s well to help him recover his money.

Springfield also owes US$94 million to a Switzerland-based company, Petraco Oil Company SA. Dubai authorities are currently holding Mr Okyere over the debt after he failed to honor a court summons regarding a cargo of petrol supplied by EDURC Company DMCC and discharged at Tema, Ghana, valued at US$29,321,064.51.

Petraco Oil alleges that Mr Okyere and Springfield, along with Ghanaian partner GMP Energy Limited, diverted proceeds from crude oil lifting under their joint venture, Petraco Energies DMCC, amounting to US$94 million. The company claims the funds were deliberately misappropriated, with executives falsely asserting non-payment despite receiving full settlement from Ghana’s state-owned Bulk Oil Storage and Transportation Company (BOST).

The Swiss company also claims that a US$50 million loan extended to Springfield to fund a unitisation project with Eni Ghana was obtained under false pretences.

Interestingly, ENI reportedly evaluated Springfield’s well and concluded that its commercial viability was doubtful, resulting in its refusal to submit to the Unitisation.

Jinapor, explained that both a technical valuation and a commercial valuation will determine whether the asset is worth state investment.

According to him, if the assessment confirms that the WCTP2 field has strong potential, especially after already passing through the high-risk exploration phase, the government will be open to providing the necessary backing.

“If it proves that the field holds huge potential, we would engage Springfield and give them whatever support is required,” he noted.

The Minister, however, made it clear that the government will walk away if the results fall short of expectations. “If it does not meet the criteria, forget about it,” he stressed.

The government is currently exploring a possible intervention in the block as part of broader efforts to protect declining upstream assets and boost oil production, which has dropped significantly over the past few years.

The outcome of the evaluation will determine whether the state engages Springfield or walks away from the deal.

Mr Jinapor said the ministry will not proceed unless a thorough assessment shows that the field is commercially viable and beneficial to the state.

“Does the field hold potential? Is the field prolific? Is the state going to benefit if it takes a stake in that field? That is the technical aspect,” he explained.

He added that the commercial evaluation would also require validating Springfield’s financial claims.

“They claimed that they spent some money. Have they indeed spent that money? Can we validate those expenditures? Very, very critical,” he said.

The minister stressed that while he is committed to supporting Ghanaian companies in the petroleum sector, he will not compromise on due process or transparency.

“I’m determined to help any Ghanaian company. But I’ll never bend the rules. I’ll never bend fair principle,” he stated.

Jinapor also welcomed scrutiny from civil society groups, including ACEP, noting that their feedback helps improve the process. He assured that any final report on the WCTP2 assessment will be shared with stakeholders for open discussion.

Meanwhile, the Executive Director of the ACEP, has responded to the Energy Minister’s stance, reaffirming his opposition to the government’s decision to allow the national oil company, GNPC, and its subsidiary, Explorco, to hire an independent technical consultant and transactional advisor to assess Springfield’s assets instead of the Petroleum Commission.

Mr Boakye previously disclosed that earlier this year, officials from Springfield E&P and Explorco attempted to value Springfield’s assets at between US$433 million and US$1.1 billion. This occurred after GNPC and its subsidiary hired a reputable consultant but provided discredited data, which he said was meant to influence the outcome of the assessment.

Reinforcing his point, Mr Boakye stated that the Petroleum Commission, the upstream regulator, was unequivocal in dismissing Springfield’s recent appraisal, stating that the company’s conclusions were flawed.

On the Minister’s interview, Ben Boakye, in a post on X (formerly Twitter), acknowledged “the significant reforms he has driven in the energy sector over the past ten months, which are genuinely commendable”.

“To be fair, the Minister shared the same position when I asked him before my earlier post. We have had open and honest engagement with him since he assumed office. ACEP’s policy engagement and influence have strengthened under his tenure more than under any other minister. We agree and disagree frankly, and he has never tried to gag our policy views.

“He and the Minister of Finance entrusted us with leading negotiations with the IPPs, saving the country about $250m in exiting debt and more than $7 billion across the life of the agreements.

“Our position is not about his support for local companies. The law already provides incentives for Ghanaian participation in the oil sector. ACEP supports the local content regulations, even though their implementation leaves much to be desired.

“The real issue is that no law allows the state to absorb private sector losses, whether local or foreign, especially when the evidence shows the venture is risky and likely to cost the country.

“On the “independent evaluation” of the Springfield’s field: the Petroleum Commission is the legally mandated independent regulator with more than a decade of institutional history. If the government doubts its independence, or the Commission itself cannot assert it, then we have a much bigger governance problem.

“The Commission has repeatedly stated that Springfield has not provided the complete raw data. If the regulator is not satisfied, its evaluation remains inconclusive. Full stop. The state must allow the Commission to deliver a judgment that the industry can also assess and trust or critique.

“There’s no need to sidestep an incomplete regulatory process simply because a private company dislikes the outcome. Doing so undermines the entire regulatory ecosystem and weakens the authority of the Commission over all sector players.

“We insist that having GNPC and Explorco lead a new “independent valuation” is problematic. Their past actions and poor judgement have cost the country money, both directly and through project delays. The Minister himself reversed some of their decisions which anchored the unitisation claim until Ghana lost at arbitration. It is the same technical people leading the corporation today.

“These same entities carried out a valuation less than six months ago that endorsed Springfield’s data, ignoring the Commission’s technical concerns and established international processes for reservoir audits.

“If the Commission is no longer independent, that should be stated openly. Otherwise, it must be allowed to complete its work with full access to the data before any external intervention. Companies may challenge the Commission’s decisions in law only after complying fully with regulatory requirements.

“Bringing in a new consultant, paid with state funds before the regulator completes its job, weakens institutional control and undermines the state’s ability to manage the petroleum sector.

“Thus far, every analysis, except that of Springfield and GNPC, contradicts the claims of commerciality of the field.

“The solution is simple: give the regulator full access to the raw data and allow it to finish its work. If any party disagrees, the remedies lie in law, not political shortcuts.

Earlier in a post on X (formerly Twitter), Mr. Boakye, who has extensive knowledge of the oil and gas sector, expressed concerns about the government’s decision.

He described what the Ministry of Energy and Green Transition referred to as “constructive discussions” on a possible takeover of Springfield’s assets in its Wednesday, November 19 press statement as “even more troubling.”

In a post on X (formerly Twitter), Mr. Boakye argued that the WCTP Block 2 belongs to the state, stressing that contractors are expected to take the risks and share in the benefits only when they succeed.

He contended that when contractors fail, the state’s duty is to reclaim its asset—not underwrite the losses of a private investor, as he believes the government’s current approach seeks to do. The ACEP boss argued that what Ghana needs at this point is not a buyout of Springfield E&P’s assets, but strict enforcement of contractual obligations.

He questioned why the state would consider taking over a non-performing asset when “there is too much poverty in the country” and funds could be better directed toward addressing pressing socioeconomic needs rather than “wasteful, trumped-up ventures.”

In its statement issued on Wednesday, the Ministry of Energy and Green Transition explained that the rationale behind the move is to help arrest the decline in crude oil production, which currently stands at about 150,000 barrels of oil per day (bopd), down from over 200,000 bopd in 2019.

The downward trend has been a significant concern for industry players and energy analysts. The Ministry believes the intervention is essential to prevent further delays in field development, unlock the block’s long-term economic value, sustain upstream activity and associated national revenues, and enhance Ghana’s overall energy security.

“With Ghana’s national crude oil production declining over recent years, coupled with uncertainties within the global energy transition, Government considers it urgent to advance the development of the WCTP2 resource base,” the Ministry stated.

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