In a political drama unfolding in Ghana’s energy sector, President John Mahama’s directive to withdraw the controversial unitisation policy—initiated by former Energy Minister John Peter Amewu and aggressively championed by his successor, Mathew Opoku Prempeh—has hit a wall of resistance, with near blows reported at the Energy Minister’s office yesterday, Wednesday, February 12th, 2025.
The directive, which the National Democratic Congress (NDC) campaigned to overturn, was aimed at reversing a policy that many believe stifled growth and investment in the oil and gas industry during the Akufo-Addo administration. Yet, despite President Mahama’s firm stance on revitalizing the sector, a web of lobbying and bureaucratic sabotage appears to be slowing progress to a snail’s pace.
The unitisation directive was introduced about five years ago under John Peter Amewu, who argued that the integration of oil fields would optimize resource extraction and benefit Ghana’s economy but provided the weakest justification, which was overturned by the International Court of Arbitration in July last year. Mathew Opoku Prempeh, who took over from Amewu as Energy Minister, continued to champion the policy, even as industry experts criticized it for undermining investor confidence and creating legal disputes.
The foundation of controversy centred on Springfield E&P’s West Cape Three Points (WCTP) block and its supposed connectivity to Eni’s Sankofa Gye Nyame field.
The Akufo-Addo government maintained that the two fields were connected and should be jointly developed, forcing Eni to integrate its operations with Springfield. This move was met with resistance from Eni, leading to a prolonged legal battle that Ghana ultimately lost in international arbitration. The tribunal ruled that the unitisation directive was improperly imposed, putting pressure on the current administration to reverse the policy and restart stalled industry operations.
During his campaign, President Mahama made it clear that the unitisation directive had severely impacted Ghana’s oil industry, promising to “reset” the sector upon assuming office. Stakeholders in the industry were optimistic that the new administration would swiftly withdraw the directive to restore investor confidence and stimulate economic activity. However, over a month into his presidency, the directive remains in place, leading to growing frustration within the industry, forcing a visit by the Chief Executive Officer (CEO) of Eni, Claudio Descalzi, in Accra to discuss the company’s activities in the country and how it is impacting the energy sector.
The delay is not due to a lack of political will from the President, who has reportedly issued precise instructions for the directive’s withdrawal. Instead, it is attributed to intense lobbying from powerful financiers behind Springfield. The most influential of these is one Kwame Addo, a businessman believed to have substantial investments in Springfield. According to insiders, Mr Addo is under immense pressure to protect his investment and has been lobbying President Mahama to reconsider the withdrawal.
The Herald has been inundated with calls expressing dismay at the lobbying activities surrounding the unitisation policy. Insiders reveal that Springfield is leveraging political connections to delay the withdrawal process. The company recently submitted a report to the Petroleum Commission, hoping to use it as a basis to delay the implementation of the President’s directive.
Further complicating matters is the suspected sabotage within government institutions, with key officials allegedly leaking information to Springfield. One example is how Energy Minister John Jinapor recently deferred the decision to the Attorney General, seeking legal advice on the withdrawal of the directive. Despite the Attorney General’s opinion that the directive was illegal and should be withdrawn, the Energy Minister has yet to act on it.
Tensions reached a peak yesterday, Wednesday, February 12, 2025, when the Energy Minister instructed the Ministry’s Legal Director, Sarah Fafa Kpodo, who is reportedly close friends with Springfield’s CEO, Kevin Okyere, to draft the withdrawal letter. Insiders recount a dramatic sequence of events in which the Legal Director delayed drafting the letter, only to finalize it just as Kevin Okyere arrived at the Ministry.
According to sources, Okyere’s visit was no coincidence; the Legal Director allegedly informed him of the impending decision, prompting Okyere to rush to the Ministry in the company of a lady and protest. What transpired in the Minister’s office remains a mystery, but it is evident that Okyere succeeded in preventing the signing of the withdrawal letter.
The current standoff is rooted in a series of events following Ghana’s loss at the arbitration tribunal. Industry experts expected the Akufo-Addo government to promptly withdraw the unitisation directive to revive stalled industry activities.
However, the then-Attorney General, Godfred Dame, and the then-Energy Minister, Mr Opoku Prempeh, defied expectations by misinterpreting the ruling and instead instructed Springfield to undertake an appraisal of its discovery. Springfield instead decided to conduct a well test to still aim at commerciality and connectivity between its WCTP block and Eni’s Sankofa field.
However, in a controversial move, Springfield allegedly refused to provide the Petroleum Commission, GNPC, and Explorco access to its operational data, a standard requirement in such processes. This lack of transparency and respect for Section 52(3) of the Petroleum (Exploration and Production) Act, 2016, Act 919, has fueled suspicions that the company is leveraging political connections to manipulate the regulatory process.
The ongoing saga has exposed a lack of decisive leadership among political appointees responsible for implementing the President’s directive. With the Attorney General’s legal opinion confirming the illegality of the Amewu directive, the Energy Minister is under pressure to act. Yet, his hesitation, coupled with continued lobbying from Springfield’s allies, has stalled progress.
The situation has also raised questions about the influence of political appointees and their connections to powerful business interests. Industry observers note that the Energy Minister’s decision to defer to the Attorney General, Dr Dominic Ayine was a strategic move to buy time, allowing Springfield to intensify its lobbying efforts and torpedo President Mahama’s firm instructions.
The prolonged delay in withdrawing the unitisation directive is not just a regulatory issue but a political one, with significant implications for Ghana’s oil industry and the Mahama administration’s credibility in the global energy market. The situation threatens to erode investor confidence and stall economic growth in a sector crucial to the country’s development but experiencing significant declines.
Moreover, the political optics are damaging. President Mahama’s inability to swiftly reverse a policy he vehemently opposed during his 2024 election campaign is being interpreted as a sign of political weakness. Indeed, some argue that his administration is being undermined by vested interests within his own party and government institutions.
The unfolding drama surrounding the unitisation directive highlights the intricate intersection of politics, business, and regulatory oversight in Ghana’s oil industry. As of now, the directive remains in limbo, with Springfield continuing to fight for its survival through political manoeuvring.
For President Mahama, the stakes are high. Powerful lobbyists determined to protect their interests are testing his promise to reset the oil industry and restore investor confidence.
How he navigates this political minefield will shape the future of Ghana’s energy sector and define his legacy as a leader. With about three years and ten months to go, time is of the essence.
The Herald will continue to monitor this developing story, providing updates as the situation evolves. For now, one thing is clear: the snails and snakes of political lobbying are firmly in control, and the battle for Ghana’s oil industry is far from over.
Source: TheHeraldghana
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