I do not expect Ghana to be slapped with any Judgment debt in the ENI suit-Petroleum Economist

A Petroleum Economist, Dr. Theophillus Acheampong is optimistic that Ghana will not be slapped with any judgment debt in the ENI suit in the London Tribunal.

He made this statement in an interview with pressmen in Accra on Wednesday, September 2, 2021.

“When Springfield announced the discovery, ordinarily you have to drill an appraisal well (a vertical or deviated well that is drilled to understand the potential of a hydrocarbon reservoir before commercial production of oil from a well can commence) to that extent, that hasn’t been done and the process come across to me as though it is being short cut from what conventionally is the means and this is what ENI is testing and challenging in court,” he noted.

Background

Italian oil and gas firm, ENI, filed a suit at the International Tribunal in London, United Kingdom, to challenge a directive by the Ministry of Energy, asking the oil firm to unitize Sankofa offshore oil field and Afina oil block operated by Springfield E&P, a wholly Ghanaian upstream player.

In a statement filed by three renowned lawyers namely Craig Tevendale, Andrew Cannon, and Charlie Morgan from Herbert Smith Freehills LLP, ENI is seeking five reliefs from the Tribunal.

The claimant wants the Tribunal to declare that the purported 9th April directive, 14th October directive, 6th November directive by the Energy Ministry, and any other steps taken to implement those directives represent a breach of contract under the Petroleum Agreement.

A declaration that the respondents take no further action to implement the purported unitization of the Sankofa Field and Afina discovery on the terms of the purported directive.

ENI is also seeking an order that the respondent pays damages in an amount to be quantified for the losses suffered by it arising out of the respondent’s breaches of the petroleum agreement, Ghanaian law, and international law.

An order that the respondent pays all of the costs and expenses of the arbitration including the fees and expenses of ENI’s counsel and any witnesses…

However, Dr. Acheampong maintains that Ghana is not likely to be slapped with a judgement debt following the suit against the country by Italian Oil giant.