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Friday, November 13, 2020
It is common within the oil industry to combine nearby fields that turn out to be part of the same geological structure. The process, known as unitization, distributes the resources between license holde
It looks like the government of Ghana will force Italian major Eni to merge its Sankofa offshore oil field with a neighboring discovery made by a domestic explorer and imposing its own terms on the deal, according to a letter seen by Bloomberg.
Bloomberg reports that the Ghanaian government is seeking to maximize recovery of petroleum resources. The move comes after the Italian oil major and Accra-based Springfield Exploration and Production Ltd. missed a deadline to work out an arrangement for combining the fields, Minister of Energy John-Peter Amewu wrote in a letter dated Oct. 14.
It is common within the oil industry to combine nearby fields that turn out to be part of the same geological structure. The process, known as unitization, distributes the resources between license holders in proportion to their share of the initial discoveries, allowing for more efficient development of the resources using shared infrastructure.
“The Minister of Energy now imposes terms and conditions for the unitization of the Afina and Sankofa fields to ensure optimum exploitation and recovery of Ghana’s petroleum resources,” Amewu wrote.
Eni will be the operator of the unitized area, according to the letter. A copy of it was shared by two people with knowledge of the matter, who requested not to be identified because the information isn’t public, according to Bloomberg.
Springfield said in December that Afina has 1.5 billion barrels of oil in place. According to Eni’s website, Sankofa has reserves of about 40 billion cubic meters of natural gas and 500 million barrels of oil.
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