Eni and Vitol Win Arbitration Decision in Ghana's Oil and Gas Unitization Dispute.

Eni Ghana Exploration and Production and Vitol Upstream Ghana have secured a favorable decision from an international arbitral tribunal concerning their unitisation dispute with the Republic of Ghana. The tribunal ruled in favor of Eni and Vitol, affirming their longstanding objections to the Ministry of Energy’s unitisation directives.

The tribunal concluded that the directives were erroneous and unlawful, constituting a breach of Ghanaian law and the terms outlined in the OCTP (Offshore Cape Three Points) Petroleum Agreement. The ruling also preserves Eni and Vitol's right to seek damages if the directives are enforced improperly in the future.

Despite the dispute, Eni and Vitol remain steadfast in their commitment to Ghana and the OCTP project, a flagship initiative supported by the World Bank that plays a crucial role in supplying domestic gas to Ghana. Throughout the process, both companies have consistently expressed their willingness to engage in a fair, transparent assessment of unitisation practices aligned with international standards and Ghanaian regulations. However, they oppose the methods employed by Ghana, citing deficiencies in meeting legal and industry norms.

Eni and Vitol value their partnership with Ghana and anticipate that the tribunal's decision will pave the way for resolving this dispute amicably. They are eager to redirect their focus towards advancing Ghana’s oil and gas sector, ensuring continued development and prosperity in collaboration with all stakeholders involved.

Eni and Vitol opposed the Republic of Ghana's efforts to enforce unitisation between the active Sankofa oil field in OCTP and the unappraised Afina discovery in WCTP2 (West Cape Three Points).