The government's potential acquisition of Springfield Exploration and Production's Afina oil block has sparked concerns from IMANI Africa, a policy think tank. IMANI warns that relying solely on company-provided data for valuation poses significant financial risks to taxpayers. The Afina block's uncertain status, insufficient appraisal, and technical ambiguity make it unsuitable for valuation based on existing data alone.
IMANI emphasizes the need for fresh spending, new drilling activities, and strict oversight, with the government acting as a lender rather than a buyer. They argue that Springfield's limited appraisal work was conducted under company control, lacking regulator-led validation or independent verification. This raises concerns about the transfer of corporate risk to taxpayers.
The organization highlights Springfield's legal battles, reported debt challenges, and adverse arbitration ruling regarding drilling obligations. These factors suggest the government might inherit hidden liabilities or unresolved obligations through a rushed acquisition. IMANI questions the substantial investments Springfield made in Afina, given their arbitration win against unpaid bills.
The Energy Minister's withdrawal of the forced unitization directive between ENI's Sankofa field and Springfield's Afina discovery in 2025 was praised by IMANI. However, they express concern about potential government buyouts enabling lobbying and backroom deals. IMANI argues that the valuation process should not be controlled by Springfield, as they have the strongest incentive to inflate asset value.
The decline in crude oil production in the first half of 2025 intensifies pressure on the government to reverse production decreases. This urgency might undermine prudent decision-making regarding the Afina acquisition. The Ministry of Energy and Green Transition confirms discussions, emphasizing the need to advance resource development as Ghana's national crude oil production declines.
Springfield's appraisal well test activity at Afina in late 2024 confirmed geological and operational capacity. However, IMANI argues that with only one well drilled, the Afina block remains speculative. They advocate for fresh, regulator-supervised technical work, rather than relying on Springfield's documentation.
The potential acquisition is seen as a moral hazard, rewarding weak corporate governance and institutionalizing a precedent where distressed private oil firms can lobby the state for financial rescue. IMANI urges the government to ensure taxpayers do not absorb legacy liabilities or financially distressed obligations through hasty decisions.
The Africa Centre for Energy Policy (ACEP) Executive Director, Ben Boakye, also cautioned against the acquisition, describing it as costly and unnecessary. He argues that the West Cape Three Points Block 2 already belongs to the state and should be reclaimed due to Springfield's contractual failures.
