ACEP's Comments On The Eni-Springfield Unitisation Tussle And ExxonMobil’s Exit from Ghana
ACEP has noted with concern, public discussions on the following issues, which present warning signals for government’s action to avert the depletion of investor confidence in the upstream sector:
1. The proposed unitisation between Eni's Sankofa Gye Nyame (SGN) Field and Springfield's West Cape Three Points' (WCTP) Afina discovery.
2. The exit of ExxonMobil from Ghana.
The negative press associated with these issues has the potential to undermine the progress made over the years to encourage investments into Ghana’s upstream petroleum sector. This is further worsened by the current global context of the energy transition, which is engineering a significant shift from fossil fuel investment to low carbon energy sources. The positive response of major oil producers and investors to the transition is promoting alternative energy sources that are significantly suppressing the demand growth for fossil fuels. A scan of the strategy of major oil producers shows a clear transition path to becoming energy companies through extensive Research and Development (R&D). The shift is shrinking the available capital for investments in new exploration activities in the oil industry and generating extreme competition for limited exploration funds. Attracting investment, therefore, requires a positive, assuring and less risky political environment. This environment can be achieved through stakeholder collaboration and transparent engagements that reduces negativity and its attendant impacts on investment attraction. ACEP's statement on these developments is a cautionary call on government and stakeholders to act right and preserve the investment climate of the oil industry.