John Jinapor
The Government of Ghana, through the Ghana National Petroleum Corporation (GNPC) and its upstream subsidiary GNPC Explorco, has begun constructive discussions with Springfield Exploration and Production Limited (SEP) on a potential state-led takeover of SEP’s interest in the West Cape Three Points Block 2 (WCTP2).
According to a statement issued by the Ministry of Energy on Wednesday, 19th November, the intervention forms part of the government’s broader strategy to safeguard national petroleum assets, optimise upstream production, and prevent valuable resources from remaining stranded due to commercial or operational bottlenecks.
To ensure that the process is rigorous, transparent and technically sound, the Petroleum Commission and GNPC are jointly procuring an independent Technical Consultant and a reputable Transactional Advisor. Their mandate includes:
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A comprehensive technical assessment of the WCTP2 block
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Full cost audit and verification of past expenditures
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Financial due diligence on the asset
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Independent valuation to determine the fair and equitable value of SEP’s interest
The Ministry noted that this approach is designed to ensure that all decisions are evidence-based, commercially prudent, and aligned with Ghana’s long-term national interest.
Rationale for the State Intervention
The statement highlighted that Ghana’s crude oil production has declined in recent years at a time when global energy transition trends are creating uncertainties for petroleum-dependent economies. Against this backdrop, government considers it urgent to advance the development of the WCTP2 resource base.
The Ministry emphasised that timely intervention is essential to securing Ghana’s energy future, maximising value from existing petroleum resources, and strengthening the resilience of the upstream sector.
