Govt’s Withdrawal of Unitization Directives Restores Investor Confidence in Petroleum Sector

The decision by the Ghanaian government to withdraw the 2020 Unitization Directives on the Sankofa oil field has been welcomed as a significant step toward restoring investor confidence in Ghana’s petroleum sector, which has struggled to attract fresh investments since 2017.

In a statement issued in Accra, Italian Oil giant, Eni acknowledged and welcomed the move, emphasizing its commitment to working with the government to advance Ghana’s energy sector.

“In line with the Government’s objectives, Eni remains committed to leverage its portfolio of innovative projects, seizing new opportunities both in traditional and transition energy sectors, while strengthening domestic energy security and sustainability,” the company stated.

The decision follows high-level engagements between Ghanaian authorities and Eni, including a meeting between President John Dramani Mahama and Eni’s CEO, Claudio Descalzi. The discussions centered on unlocking short- and medium-term oil and gas development opportunities that could reshape Ghana’s energy landscape.

This renewed collaboration comes in the wake of past tensions, notably Eni’s decision to take legal action against Ghana at the International Court of Arbitration over the controversial Springfield unitization saga. The dispute, triggered by a government directive to merge Eni’s Sankofa field with Springfield’s Afina discovery, raised concerns among industry players about regulatory uncertainty and its impact on investment.

Since 2017, Ghana has been unable to attract fresh investment into its petroleum sector, with investors wary of regulatory unpredictability. However, the recent withdrawal of the directive signals the government’s commitment to creating a more stable investment climate, potentially reviving interest and bringing renewed hope for capital inflows into Ghana’s upstream petroleum industry.