ENI’s motion for special leave to appeal against Court of Appeal ruling dismissed

The Supreme Court has dismissed a motion for special leave filed by ENI Ghana to appeal against the ruling of the Court of Appeal.

According to the apex court, the applicant failed to raise any convincing point in its motion to seek leave.

ENI Ghana Exploration and Production Ltd filed a motion for special leave to appeal against the May 30, 2022 ruling of the Court of Appeal per article 131(1) of the 1992 Constitution.

However, the panel presided over by the Chief Justice, His Lordship Kwasi Anin Yeboah, dismissed the application and duly awarded a cost of GHC30,000 against ENI.

Other members of the panel were; Justice Prof Ashie Kotey, Justice Gabriel Pwamang, Justice Amadu Tanko, and Justice H.Mensa-Bonsu.

Court of Appeal

The Court of Appeal dismissed an appeal by ENI and Vitol Ghana Exploration and Production Limited and Vitol Upstream Ghana Ltd. which sought to set aside an order by the High Court for 30% of all funds, revenue, and monies accruing from the exploration and production of petroleum to be preserved in an escrow account.

This stemmed from a June 2021 order by Justice Mariama Sammo in an action instituted by Springfield Exploration and Production Limited against ENI and Vitol

ENI and Vitol had gone to the Court of Appeal seeking to reverse and set aside the June 2021 order but the court, in a unanimous decision, dismissed the appeal describing it as unmeritorious and awarded a cost of GH₵10,000 against ENI and Vitol.

Supreme Court

In June this year, the Supreme Court dismissed a motion by ENI Exploration and Production Ltd and Vitol Upstream Ltd against Springfield Ghana Ltd, in which they were seeking certiorari, to quash a January 24, 2022 decision of the High Court.

The applicants, ENI Ghana, and partners, Vitol Upstream Ltd argued that the January 24, 2022 order of the High Court, changed the “nature” and “character” of the preservation ruling of June 25, 2021, particularly with regards to the form and terms on which the funds were to be preserved. 

 It was also their case that the High Court, by the nature of its January 24, 2022 order, acted in excess of its jurisdiction, “as the High Court does not have the jurisdiction to review its own decisions.”

Furthermore, they also refuted claims by the original plaintiffs (Springfield Ghana Limited), that they refused to comply with the preservation ruling, for which reason the court gave its January 24, 2022 orders. 

Background

The disputed Sankofa Oil Field is part of the Offshore Cape Three Points (OCTP), located on the coast of Western Ghana, with about 500 million barrels of oil reserves, and 40 billion cubic meters of gas. 

Italian multinational oil giant, ENI is the lead operator in the area whereas Springfield is the lead operator in the West Cape Three Points (WCTP), with the Afina Field.

According to Springfield, various analyses and tests had shown that the accumulation of petroleum in the Sankofa field extended to its contract area (Afina Field).

In April 2020, the then Minister of Energy, Mr. John Peter Amewu, in accordance with Section 34(1) of the Petroleum (Exploration and Production) Act, 2016 (Act 919), directed ENI and Springfield to execute a unitisation with respect to the Sankofa field in the OCTP and Afina discoveries in the WCTP contract areas.

It is Springfield’s case that the defendants, ENI and its partners Vitol Upstream Ltd, had failed to comply with the directives of the Minister.

As a result, on July 9, 2020, Springfield instituted an action at the High Court(Commercial Division) and sought against the Defendants(ENI& Vitol) the following;

An order directed at them to comply with the said April 9, 2022, directed of the Minister for Energy and enter into an agreement forthwith with it to produce and develop the accumulation of the petroleum in the Sanko and Afina fields as a single unit.

An order directed at defendants to co-operate with Plaintiff to produce and develop the accumulation of petroleum in its Sankofa and Afina fields as one unit.

An order directed at Defendants to render accounts to the Plaintiffs in respect of costs and proceeds received by ENI and Vitol for its exploration and production activities in its Sankofa field from 2009, when they commenced exploration of the said field till then.

An order that any income, profits on other finds due Springfield from ENI and Vitol exploration and production activities in the Sankofa fields be paid to its upon taking such on the account.

Preservation Ruling

On June 25, 2021, the High Court, presided over by Justice Mariama Sammo, ordered that 30 percent of all funds, revenue, and monies earned, paid to, and accruing from the exploration and production of petroleum by ENI Ghana and Vitol Upstream Limited from the Sankofa Field be preserved, and in the interest of the parties be deposited into an interest-bearing account with a bank to be agreed between the parties.

Variation Ruling

The particular High Court decision on January 24, 2022, ordered ENI Ghana Ltd and Vitol Upstream Ltd to pay 30 percent of revenue from the scale of crude oil to the Court Registrar. The amount involved US$ 40 million to be paid monthly, starting from the date of the original ruling of June 25, 2021, until the determination of the substantive matter. This amount was to be paid into an escrow account by the Registrar, and records of same made known to parties.