The recent decision by the Ministry of Energy of Ghana to unitize the Sankofa and Afina fields located within Eni's Offshore Cape Three Points (OCTP) Block and Springfield E&P's West Cape Three Points Block 2 (WCTP2) is a step in the right directon.
The decision paves the way not only for an Africa's independent to participate in the development of one of Ghana's biggest producing assets, but also to ensure continued and increased production of oil and gas.
First oil was achieved from the Sankofa Gye Nyame fields within the OCTP license in 2017 and was followed by first gas in 2018. Three years later, OCTP has become Ghana's biggest gas producing asset and its second-biggest oil production hub. Because it has been officially confirmed that the same Cenomanian Channel straddles both the OCTP Block and WCTP2 Block, a unitization of Sankofa with the Afina discovery made last year by Springfield E&P is the fairest and most logical thing to do.
The upcoming unitization will notably give Springfield E&P, Ghana's leading local company, a boost by ensuring its participation in the development of a world-class deep water asset. Such developments are not only positive from a capacity building and technology transfer perspective, but are also the most cost-efficient way to maximize the development of reserves found within similar structures even shared by various licensees.
"The African Energy Chamber wishes to highlight the pragmatism of the Government of Ghana and the Ministry of Energy when it comes to providing an enabling environment for local players and preserving the interests of the industry at large," stated NJ Ayuk, Executive Chairman at the African Energy Chamber. "Springfield E&P is led by a very capable leader, Kevin Okyere, who has proven to be an astute African entrepreneur. There is no doubt that Springfield will rise to the challenge in the development of such an asset along with a partner like Eni," concluded Ayuk.
Within its Africa Energy Outlook 2021 released this week, the African Energy Chamber has notably identified subsea tie backs and brownfield expansions as the biggest drivers of future upstream developments on the continent. Because such projects are cheaper, they are the most likely to get sanctioned under current market conditions, and remain the fastest way to reserve sub-Saharan Africa's production decline. As Ghana still works on sanctioning a new development plan for its flagship Pecan Field, the upcoming development of Afina provides a great opportunity to maintain upstream momentum in the market.
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