BY Issah Olegor
The National Democratic Congress government’s move to consider acquiring Springfield Exploration and Production Limited’s (SEP) West Cape Three Points Block 2 (WCTP-2) has drawn sharp criticism from the Africa Centre for Energy Policy (ACEP), which has warned that the proposed deal could be a costly mistake for the nation.
The plan, announced under the administration of President John Dramani Mahama and overseen by the Minister for Energy, John Abdulai Jinapor, has raised serious concerns over the prudent use of public funds and adherence to established principles in the oil and gas sector.
ACEP described the potential acquisition as fiscally imprudent and cautioned against setting a dangerous precedent for the handling of state oil assets.
According to ACEP Executive Director, Benjamin Boakye, the proposed takeover ignores fundamental risk-sharing principles in the petroleum sector.
“The oil block is state-owned. Contractors are meant to bear operational risks and benefit only when successful. The state should reclaim assets when contractors fail—not absorb their losses,” Boakye said.
The controversy intensified earlier this year when Springfield, together with GNPC Exploration & Production Limited (Explorco), attempted to value the asset between $433 million and $1.1 billion.
ACEP claims that while a reputable consultant was engaged, the data provided was discredited, effectively predetermining the appraisal outcome.
The Petroleum Commission has also disputed Springfield’s technical claims, flagging significant errors in projected oil production and reservoir performance.
Independent technical reviews show that Springfield relied on Pressure Transient Analysis (PTA) models and Horner plots rather than measured reservoir pressures from MDT logs, leading to questionable production forecasts.
While Springfield projected field production plateau rates of up to 16,000 barrels per day, actual test data indicated a more modest potential of 370–500 barrels per day per vertical well.
ACEP notes that such overestimations make government acquisition highly risky.
The technical and financial issues are compounded by social and economic concerns.
ACEP stressed that Ghana faces widespread poverty and limited public resources, making it unwise to invest in a non-performing, high-risk asset.
“There is simply too much at stake to divert taxpayer funds into a venture based on overestimated projections and disputed technical data,” Boakye said.
Reports show that Springfield holds interests in the Afina-Sankofa Field and WCTP-2 Block offshore Ghana alongside GNPC Explorco.
A September 2025 evaluation by Netherlands, Sewell & Associates, Inc., estimated contingent oil resources and cash flow for Springfield under multiple scenarios.
However, these projections are contingent upon regulatory approvals, unitization of the Afina-Sankofa Field, development commitments, and successful resolution of other uncertainties—all of which remain unresolved.
ACEP called on the NDC-led government to prioritize enforcement of existing contracts and development of dormant blocks rather than acquiring non-performing assets.
“Prudent governance and adherence to technical realities should guide decisions, not political expediency or pressure from private interests,” Boakye added.
The Springfield debate now puts John Jinapor and President Mahama’s administration under scrutiny as they weigh potential national control over strategic oil assets against the fiscal and technical risks of the acquisition.
