A Former Deputy Minister of Information Felix Kwakye Ofosu has accused the Akufo-Addo government of corruption in the oil and gas industry.
In his view, the ‘greed, state capture and corruption’ of the government have driven away vital investments from the sector, leading to much lower production than we should be having
“The Akufo-Addo/Bawumia government has been very bad news for our oil and gas industry.
“Their corruption,greed and state capture have driven away vital investments from the sector leading to much lower production than we should be having.Not a single oil well has been put into production in the last 8 years. And we just lost a case against ENI,” he said in a post on his X platform reacting to the $915 million suit brought by Eni Ghana and Vitol Upstream against Ghana.
The Minority for their part told the government to refrain from ‘unfortunate’ and ‘immature’ decisions that result in lawsuits against Ghana.
The International Arbitration Tribunal in the Eni & Vitol v. Ghana & GNPC arbitration has issued its Final Award.
According to the government, the Tribunal denied Claimants their monetary damages. The Claimants initially claimed 7 billion dollars, but they subsequently reviewed it to $915 million plus interest by the end of the proceedings.
The Tribunal also dismissed the Claimants’ claims against GNPC in their entirety. In addition, the Tribunal dismissed the Claimants’ request that the Tribunal declare that Ghana breached the Petroleum Agreement by “refusing to withdraw or prevent reliance by third parties on the Unitisation Directives.” The Tribunal also dismissed the Claimant’s request that Ghana notify the High Court, Court of Appeal and Supreme Court of Ghana that the Unitisation Directives were issued in breach of the Petroleum Agreement.
The Tribunal, however, found that “in the circumstances in which they were issued,” the Unitisation Directives breached the Petroleum Agreement. That is, the unitisation was contrary to the applicable regulations and thereby breached Article 26(2) of the Petroleum Agreement. Nonetheless, the Tribunal affirmed Ghana’s right to the authority to unitise oil fields to achieve efficient exploitation of the deposits.
Regarding allocation of fees and costs, the Tribunal held that since both Parties had prevailed in some ways, both Parties would be required to pay their own legal fees and costs.
In a reaction to the Award, the Attorney-General and Minister of Justice, Godfred Yeboah Dame, indicated that while he would have wished the Tribunal to dismiss the Claimants’ claims against the Republic in its entirety, he is pleased to note that the Tribunal rejected partly the claims against Ghana, and entirely the claims against GNPC.
He is also delighted by the complete dismissal of all claims for monetary compensation made by ENI/Vitol against Ghana, thus saving Ghana significant financial obligation. He is also pleased with the Tribunal’s affirmation of Ghana’s sovereign right to unitise its oil fields.
The Attorney-General added that in the circumstances, the Parties must determine the best way to proceed going forward. Unitisation, in principle, is not unlawful per the Tribunal’s decision. It is the manner and the circumstances in which the same ought to be carried out that the Tribunal found wanting in the current dispute.
The Attorney-General’s Office says it remains resolute in vigorously contesting all international arbitration claims calculated to impose judgment debt on the country.
Recent victories against Beijing Everyway, Cassius Mining, and Messrs Micheletti Company Limited are a testament to this.
But the Minority in a statement signed by John Abdulai Jinapor, Ranking Member of the Mines and Energy Committee, said that it has “noted with grave concern the false and distorted narrative put out by the Akufo-Addo/Bawumia Government through the office of the Attorney General to the effect that Ghana has won the legal case between the ENI/Vitol and the Republic of Ghana, represented by the National Oil Company (GNPC), at the International Court of Arbitration (ICA) in London. Such contrived narratives constitute gross misrepresentations and must be treated as such.”
The statement added that “With this statement, we call on the Government to refrain from such unfortunate and immature decisions in the future. We urgently call on the President to intervene and seek an amicable resolution to the impasse between Springfield and ENI to avert any further deterioration and losses in the country’s oil and gas sector.”
Read below the statement by the Minority
PRESS STATEMENT
For Immediate Release
9th July, 2024
STATEMENT ON ENI/VITOL VS GOVERNMENT FINAL RULING BY THE INTERNATIONAL COURT OF ARBITRATION
The Minority has noted with grave concern the false and distorted narrative put out by the Akufo-Addo/Bawumia Government through the office of the Attorney General to the effect that Ghana has won the legal case between the ENI/Vitol and the Republic of Ghana, represented by the National Oil Company (GNPC), at the International Court of Arbitration (ICA) in London. Such contrived narratives constitute gross misrepresentations and must be treated as such.
It will be recalled that ENI initiated a legal process against the Republic of Ghana at the International Court Of Arbitration following attempts by then Minister of Energy, Mr Peter Amewu, to impose a unitisation agreement on ENI’s Sankofa field in the Offshore Cape Three Points(OCTP) block and Springfield Energy’s Afina discovery in the West Cape Three Points 2 Block.
Contrary to the statement put out by the Attorney General’s office, the International Court of Arbitration, in its ruling, states explicitly in paragraph 489 of page 144 that:
i. The Republic of Ghana breached the Petroleum Agreement by issuing the Unitisation Directives in the circumstances in which they were issued;
ii. Declares that each Party shall bear its own costs;
iii. Orders the Republic of Ghana to pay to ENI Ghana Exploration and Production Limited and to Vitol Upstream Ghana Limited EUR189,900 for the costs of the Tribunal and SCC.
Given the above ruling, it is clear that the ICA rules against the Republic of Ghana, with the court affirming that the Government of Ghana’s directive on the unitisation was contrary to the applicable regulations and a clear breach of Article 26(2) of the Petroleum Agreement. With this ruling, therefore, the directive on unitisation by the Akuffo-Addo government stands null and void and has no effect.
It is unfortunate that despite the caution by the Minority in Parliament and other Civil Society Organisations to this NPP Government to hasten slowly on this particular issue, the Government was adamant. In the circumstances, all our genuine advice, as usual, fell on deaf ears and was ignored. We wish to state that we hold President Akuffo-Addo and his NPP Government directly responsible for this embarrassing spectacle, which only has the potential of further jeopardising the potential gains of Ghana’s upstream oil sector.
It is instructive to note that, despite inheriting three (3) oil fields from the Mahama administration, this NPP Government has added nothing significant to the oil sector; on the contrary, oil production has declined by about 32% under the current NPP administration.
Regrettably, most of the major oil-producing companies have either exited the country or slackened on their upstream activities because most investors currently view Ghana as a hostile and unfriendly business destination under this inept Akuffo-Addo/Bawumia government.
The Minority wishes to use this opportunity to acknowledge and commend Springfield (an indigenous Ghanaian Company) and ENI/Vitol for their significant investments in Ghana’s upstream oil sector. In the spirit of cooperation and ultimate benefit, we wish to encourage ENI/Vitol and Springfield to work towards finding common ground for a harmonious resolution of the impasse unnecessarily created by the Akuffo-Addo/Bawumia Government.
With this statement, we call on the Government to refrain from such unfortunate and immature decisions in the future. We urgently call on the President to intervene and seek an amicable resolution to the impasse between Springfield and ENI to avert any further deterioration and losses in the country’s oil and gas sector.
Thank you.
-SIGNED-
Hon. John Abdulai Jinapor–MP
(Ranking Member, Mines and Energy Committee)
- TAGS
- Felix Kwakye Ofosu
