Springfield’s $280m Investment Deserves State Protection –Kojo Poku

Energy expert, Kwadwo Poku, has urged the public to approach the government’s ongoing discussions with Springfield Exploration and Production Limited (SEP) with a clear understanding of the company’s journey, cautioning that much of the current commentary is rooted in misinformation rather than fact.

According to him, the Government’s decision to lead negotiations that could result in the acquisition of Springfield’s interest in the West Cape Three Points Block 2 (WCTP 2) has sparked various reactions, but many critics have failed to appreciate the significance of Springfield’s work, as Ghana’s first and only indigenous upstream operator.

Most ambitious indigenous investment

Speaking in an interview with The Chronicle, Mr. Poku noted that Springfield’s role in WCTP 2 remains one of the largest and most ambitious indigenous investments in Ghana’s petroleum sector as the company and its partners have so far invested over $280 million into the project.

Among the four upstream operators Tullow, ENI, Aker/Pecan Energies and Springfield, the latter stands alone as the only wholly Ghanaian company pushing the boundaries to open the way for more local participation in the industry.

Doubts about young Ghanaian entrepreneur

He recalled that when Springfield initially bid for the relinquished block in 2012, widespread doubt greeted the idea that a young Ghanaian entrepreneur could make meaningful inroads in such a capital-intensive and technologically complex industry.

At the time, Springfield’s founder and CEO, Kevin Okyere, was only 32 years old, yet he continued to pursue the application process through 2014 and eventually secured the block at age 36, after Parliament ratified the award in 2016.

Remarkable performance

Mr. Kwadwo Poku stressed that Springfield’s performance after winning the block has been nothing short of remarkable. Though acquiring seismic data was not part of its original programme, the company took a bold step and in April 2017, contracted the world’s largest seismic vessel, the Ramform Titan owned by Petroleum Geo-Service (PGS), to conduct a full 3D seismic survey over the 673-km² block at a cost of US$9.317 million. The new data would later guide drilling operations that led to a historic discovery.

This effort paved the way for the Afina-1x discovery, which confirmed hydrocarbons in commercial quantities estimated at more than 1.5 billion barrels of oil in place and 1.2 trillion cubic feet of gas.

At peak, the fields are projected to deliver about 80,000 barrels per day of oil and 250 million standard cubic feet (mmscf) of gas—comprising 200 mmscf of non-associated gas and 50 mmscf of associated gas.

Successful execution

Kwadwo Poku described the discovery as “a feat never achieved by any indigenous upstream company in Africa,” highlighting that the work was successfully executed in Cenomanian and Turoniandeepwater reservoirs, on schedule, within budget, and with zero safety incidents a record he believes speaks volumes about Springfield’s technical discipline.

He further emphasised that the company’s estimates have been validated by reputable petroleum consulting firms in the United States and United Kingdom, including firms whose clients file reports with the U.S. Securities and Exchange Commission.

Legal dispute

However, he pointed out that Springfield’s path to development became complicated by a legal dispute with Italian oil major ENI, which triggered years of back-and-forth over unitisation of the Afina and Sankofa fields. Following an arbitration ruling, the Petroleum Commission instructed Springfield to appraise the Afina discovery to fulfil its obligations under the Petroleum Agreement.

In what he described as an “unprecedented” mobilisation, Kevin Okyere assembled his technical team and executed the appraisal campaign within three months, confirming the commerciality of the Afina discovery and proving communication between Afina and ENI’s Sankofa field strengthening the case for unitisation.

Creating jobs

Mr. Poku noted that all these seismic surveys, drilling campaigns, regulatory compliance and recurring operational expenses estimated at US$280 million have been funded by Mr.Okyere and his partners, creating thousands of jobs through direct employment and contracts with both local and international service providers.

He explained that the current discussions with the Government are aimed at helping Springfield raise additional capital for further appraisal and development. Options being explored include bringing in new partners or enabling GNPC-Explorco, which currently holds 5%, to acquire additional stakes.

Strengthen GNPC

According to him, this would strengthen GNPC’s technical capacity while fast-tracking development of the WCTP 2 resources for national benefit.

Kwadwo Poku insists that WCTP 2 contains proven hydrocarbon reserves, and therefore, the Government-led negotiations must be viewed “through the lens of strategic national interest, not misplaced sentiments.”

He concluded that Springfield’s journey represents a national asset, not a liability and stands as clear evidence that Ghanaian participation in the upstream sector is not only possible, but capable of delivering ground-breaking results.

 

 

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