ENI suit against Govt sets a bad precedent for Ghana’s upstream viability – Dr Sulemana

• ENI SpA has filed a suit against the Government of Ghana

• The suit is challenging the Energy Ministry's directive over a unitisation of oil fields with Springfield

• The suit has been filed at the international tribunal in London

The viability of Ghana’s upstream sector could be at risk as Italian oil and gas firm, ENI SpA has filed a suit

Read full article.against the Government of Ghana at the international tribunal in London, Petroleum expert, Dr. Yusif Sulemana has submitted.

According to him, the move rather sets a bad precedent as the oil firm is challenging a directive by the Ministry of Energy requesting them to unitize the Sankofa and Afina offshore oil blocks operated by Springfield E&P, a Ghanaian owned exploration firm.

In an interaction with Joy Business monitored by GhanaWeb, Dr. Sulemana explained the repercussions of the lawsuit at the tribunal could negatively impact oil productivity.

“Unitisation can be compelled to happen in international jurisdiction. However, it’s always better and more reasonable that unitization is done voluntarily, especially by the agreed parties because what normally happens is that we need to share data and once you are not unitizing and it is not in this type that means that data sharing is going to be difficult.”

“So, I see two impacts; whenever somebody or an industry player has court issues pending, it is always a diversionary activity that can impact you,”, he added.

It is for these reasons, Dr Sulemana said the suit challenging government may not bode well for Ghana’s upstream sector.

“We are in an era where we have to encourage system players to stay in the industry, so this case going to the tribunal is not a positive development.”

He however adds the only way to resolve the ongoing impasse is for the two firms to deliberate on workable solutions to optimise oil extraction of the fields.