Amid CEO’s Legal Troubles…..
The Government of Ghana is advancing towards a state-led takeover of Springfield Exploration and Production Limited’s (SEP) interest in the West Cape Three Points Block 2 (WCTP2), citing the urgent need to safeguard national petroleum assets that risk becoming stranded.
In a press release on Tuesday, the Ministry of Energy stated that discussions are ongoing between the Ghana National Petroleum Corporation (GNPC) and its upstream subsidiary, GNPC Explorco, and Springfield, regarding the future management of the block.
The government’s intervention is part of a broader strategy to optimize upstream output and protect vital national resources. It also seeks to address longstanding commercial and operational obstacles that have impeded the development of critical petroleum assets.
To ensure a transparent and rigorous approach, the Ministry announced that both the Petroleum Commission (PC) and GNPC will engage independent Technical Consultants and Transactional Advisors. Their tasks will include:
– Conducting a comprehensive technical assessment of the WCTP2 block
– Performing a full cost audit and verifying past expenditures
– Carrying out financial due diligence
– Providing an independent valuation of SEP’s interests
These measures aim to guarantee that decisions are grounded in evidence and aligned with Ghana’s best interests.
The state intervention responds to a decline in Ghana’s crude oil production and the uncertainties posed by the global energy transition. Enhancing the development of the WCTP2 resource base is considered pivotal in preventing delays in field development, unlocking long-term economic value, sustaining upstream activity, and improving national energy security.
Further, the government reiterated its commitment to boosting the participation of indigenous Ghanaian companies in the upstream sector, emphasizing the need for technical capacity building and the safeguarding of local content.
In parallel, Kevin Okyere, CEO of SEP, is facing serious legal troubles. He has been granted $20 million bail in Dubai linked to a $94 million fraud case brought by Switzerland’s Petraco Oil Company. Okyere is restricted from leaving the emirate as he navigates a complex international legal situation involving allegations of fraud related to high-value petroleum transactions.
Reports indicate that Okyere’s detention followed the failure of Ghana’s Economic and Organised Crimes Office (EOCO) and the Criminal Investigations Department (CID) to act on previous petitions submitted by Petraco. Frustrated by the apparent lack of action in Ghana, the company pursued legal recourse in the UK and UAE.
Petraco alleges that Okyere and his partners misappropriated funds from crude oil liftings and failed to honor a significant loan agreement for a unitization project with Eni Ghana.
Dubai authorities are also considering extraditing Okyere to the UK after he failed to comply with a court summons regarding a cargo of petrol valued at over $29 million. Okyere’s refusal to travel to the UK has raised concerns about potential arrest warrants being issued against him.
As the Ghanaian government moves forward with plans to reclaim its petroleum assets, Okyere’s legal entanglements will undoubtedly play a crucial role in the ongoing developments within the nation’s oil sector. The situation remains fluid, and stakeholders are closely monitoring how these intertwined issues unfold.