Policy think tank IMANI Africa has cautioned government against proceeding with a state acquisition of Springfield Exploration and Production’s Afina oil block, arguing that relying solely on company provided data for valuation creates unacceptable financial risks for taxpayers. The warning comes as the Ghana National Petroleum Corporation (GNPC) engages in discussions regarding potential takeover of Springfield’s interest in West Cape Three Points Block 2.
IMANI’s latest brief characterizes the proposed multibillion cedi acquisition as untenable if government bases its decision exclusively on information collected by Springfield without independent verification. The organization argues the Afina block remains too uncertain, insufficiently appraised, and technically ambiguous for meaningful valuation using existing data alone.
The think tank stated that confirming commercial viability cannot be accomplished through reviewing Springfield’s reports. Instead, the process would require fresh spending, new drilling activities, and strict oversight under arrangements where government functions as lender rather than buyer. According to IMANI, Springfield’s limited appraisal work occurred under company control without regulator led validation or independent verification.
IMANI warned that basing a state takeover on unverified data would effectively transfer corporate risk from Springfield onto taxpayers. The organization emphasized that determining commercial viability likely involves significant new investment controlled by government as lender rather than purchaser operating without adequate information.
Beyond geological uncertainties, IMANI highlighted Springfield’s legal battle with Swiss trader Petraco, reported debt challenges, and adverse arbitration ruling regarding drilling obligations. These factors raise concerns that government could inadvertently inherit hidden liabilities or unresolved obligations through rushed acquisition without proper independent assessment.
The company that drilled the only well at Afina already won arbitration proceedings against Springfield over unpaid bills, according to IMANI. This development prompted questions about what substantial investments Springfield actually made in Afina that would justify the company dictating commercial terms through an acquisition process.
Energy Minister John Abdulai Jinapor withdrew the forced unitisation directive between ENI’s Sankofa field and Springfield’s Afina discovery in February 2025, following thorough review of arbitral awards and legal opinion from the Attorney General. The original directive, first issued in April 2020, sought to compel Eni and Vitol to combine the producing Sankofa field with Springfield’s unconfirmed Afina discovery.
An international arbitration tribunal ruled in July 2024 that the unitisation directive was unlawful, finding that while unitisation itself was not invalid, the directives’ issuance breached the Petroleum Agreement due to implementation circumstances. IMANI praised Jinapor’s withdrawal decision but expressed concern that news of potential government buyout could enable capitulation to lobbyists and backroom dealers.
GNPC publicly denied endorsing a reported 700 million dollar valuation figure, but IMANI maintains denials remain insufficient if the valuation process continues relying on data curated or filtered by Springfield. The party with strongest incentive to inflate asset value should not control information used for government acquisition decisions, the organization argued.
Crude oil production fell 25.9 percent in the first half of 2025 compared with the same period in 2024, according to the Public Interest and Accountability Committee (PIAC). This decline intensifies pressure on government to reverse production decreases, potentially creating urgency that undermines prudent decision making regarding Afina acquisition.
The Ministry of Energy and Green Transition confirmed discussions last week, stating government considers it urgent to advance development of the resource base as Ghana’s national crude oil production declines. Government reiterated that any future block development will align with Ghana’s local content agenda to strengthen indigenous participation in the oil and gas sector.
Springfield completed appraisal well test activity at the Afina discovery in late 2024. The appraisal well, drilled to 4,085 meters depth, encountered light oil with 65 meter gross thickness. A secondary target encountered 10 meters of hydrocarbon bearing sands containing gas and condensates. Maximum flow rate during drill stem testing reached 4,500 barrels per day.
Springfield Chief Executive Officer Kevin Okyere stated the appraisal confirmed understanding of geological, geophysical, and reservoir models while demonstrating operational capacity. He expressed confidence that horizontal wells or other completion options maximizing reservoir exposure would deliver higher production rates than the vertical Afina 1X well.
IMANI argues that with only one well drilled and no complete appraisal programme, the Afina block remains largely speculative. Any state led evaluation must be driven by fresh, regulator supervised technical work rather than Springfield’s existing documentation, according to the think tank.
The organization characterized the potential acquisition as a classic moral hazard scenario that would reward weak corporate governance, offset speculative risk at public expense, and institutionalize precedent where distressed private oil firms can lobby the state for financial rescue via strategic resource narratives.
IMANI concluded the Afina saga represents more than petroleum policy, describing it as a powerful test of government commitment to good governance and prudent use of the public purse. The think tank urged authorities to ensure taxpayers do not inadvertently absorb legacy liabilities or financially distressed obligations through hasty acquisition decisions.
Africa Centre for Energy Policy (ACEP) Executive Director Ben Boakye separately cautioned against what he described as costly and unnecessary attempts to acquire Springfield’s interest. Boakye insists the transaction lacks commercial justification, arguing West Cape Three Points Block 2 already belongs to the state and should be reclaimed rather than purchased following Springfield’s alleged contractual failures.
Boakye criticized ongoing negotiations between GNPC, subsidiary Explorco, and Springfield, describing efforts to predetermine valuation up to 1.1 billion dollars as unreliable and based on discredited data. He warned government cannot continue financing non performing oil assets while economic hardship and poverty levels rise.
The Afina field has experienced years of stalled progress despite confirmed discovery as global energy transition pressures reshape upstream investment and Ghana battles falling oil production. Industry observers note that resolving the Afina situation will significantly impact Ghana’s petroleum sector trajectory and set precedents for future government involvement in distressed private oil assets.
