Bright Simons, Honorary Vice President of IMANI-Africa has detailed that President John Mahama’s government have saved Ghana from embarrassment by withdrawing a bizarre order issued by the former Energy Minister and Vice Presidential Candidate of the former ruling party, NPP Dr Mahamudu Bawumia.
According to Bright Simons, the former Energy Minister and Dr Mahamudu Bawumia’s directive sought to compel Eni and Vittol, two international petroleum companies operating in Ghana, to merge which to him was a bit crazy as the international companies had invested more than $6bn.
In a post on X Bright Simons detailed, “ The order aimed to compel Eni and Vittol, two international petroleum companies operating in Ghana, to merge their already producing oil field with a green field owned by Ghanaian startup, Springfield. Springfield was then to take up 55% of the combined field”.
The whole idea was a bit crazy as the international companies had invested more than $6bn in their oilfield, a portion of which had been guaranteed by the World Bank against political risks in Ghana. Ghana had also issued bank guarantees for certain portions of the field’s output.
Springfield’s oil field, on the other hand, had seen less than $100m of investment by the time the order to merge came, and there was insufficient proof that it even contained enough oil to be commercially viable. Data from a recent appraisal effort raised more questions than answers”, he added.
Bright Simons noted that merging these two very different fields and giving 55% to Springfield would not only have amounted to a forced transfer of wealth from one private business to another, but it would also have shortchanged Ghana as the country’s stake.
He quizzed what the government could do sensibly saying, “With this ridiculous order now out of the way, we can have a strategic discussion about local content and local ownership. What can the government LEGITIMATELY and SENSIBLY do to support local companies like Springfield that seek to enter the upstream petroleum business?”
In answering that question, we must bear in mind that such companies will still raise the bulk of their capital internationally and many would sell equity to international investors”, he stated.
Bright Simons further revealed the days of pure nationalism in natural resources ownership and management are quite behind us.
He added, “The days of PURE nationalism in natural resources ownership and management are quite behind us. There are international rules of capital that cannot be easily discounted. Smart countries combine nationalism with international business savvy to advance their interests.
Springfield, for instance, raised all the money it has spent so far on its Afina block from investors all over the world. Albeit with a strong emphasis on Dubai, Switzerland, and Russia-based brokers”.
The Honorary Vice President of IMANI-Africa added, “Had the previous government been more receptive to counsel and objective analysis, this mess may not have been created in the first place and Springfield may have accepted some of the offers that came their way in the beginning”.
See the post below:
1. The new government of Ghana has decided to save the country from further embarrassment by withdrawing a bizarre order issued by the former Energy Minister & Vice Presidential Candidate of the former ruling party, NPP.
2. The order aimed to compel Eni and Vittol, two… pic.twitter.com/RH33hY8XIG
— Bright Simons (@BBSimons) February 26, 2025
