The Africa Centre for Energy Policy (ACEP) has launched a scathing attack on the Government of Ghana’s reported intention to acquire Springfield Exploration and Production Limited’s interest in the West Cape Three Points Block 2 (WCTP2) oil block, describing the move as a costly mistake that could set a dangerous precedent and waste scarce public resources.
In an interview with the Daily Graphic, the Executive Director, Benjamin Boakye of ACEP, listed multiple reasons why any state-funded bailout or acquisition of Springfield’s asset would violate core petroleum sector principles and expose taxpayers to undue risk.
“The oil block belongs to the state. Contractors are supposed to take the risk and share benefits only when they succeed. When contractors fail, the state’s duty is to reclaim its asset — not underwrite the losses of private companies,” Boakye told the Graphic Business.
ACEP expressed concern at reports that the Ghana National Petroleum Corporation (GNPC) and its subsidiary Explorco are holding constructive discussions with Springfield on a possible takeover, warning that both institutions have a track record that undermines their credibility in handling such transactions.
“The Petroleum Commission has been unequivocal: Springfield’s appraisal claims were wrong,” Boakye stressed, adding that the regulator has repeatedly stated that Springfield has not provided complete raw data required for a conclusive evaluation.
Lawful path
ACEP insisted that the lawful path forward is to compel Springfield to comply fully with regulatory requirements and allow the Petroleum Commission to complete its independent assessment, rather than bypassing the regulator through a new state-funded valuation led by GNPC and GNPC Explorco.
“Bringing in a new consultant, paid with state funds before the regulator completes its job, weakens institutional control and undermines the state’s ability to manage the petroleum sector,” Mr Boakye said.
While acknowledging “open and honest” engagement with the current Minister of Energy and Green Transition, John Jinapor, and commending reforms introduced under his leadership, ACEP maintained that its criticism is rooted in legal and governance principles, not opposition to local content.
“No law allows the state to absorb private-sector losses, whether local or foreign, especially when the evidence shows the venture is risky and likely to cost the country,” Boakye emphasised.
Sidestepping
He warned that sidestepping an incomplete regulatory process because a private company disliked the emerging outcome would erode trust in Ghana’s entire petroleum regulatory ecosystem.
Mr Boakye concluded Ghana could not afford to spend scarce public funds on “wasteful, trumped-up ventures” when many oil blocks had been dormant for over a decade without state intervention to rescue failing contractors.
The controversy is likely to intensify pressure on the government to clarify its position on the Springfield deal and whether public funds will indeed be used to acquire the embattled oil block.
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