The Executive Director of the Africa Centre for Energy Policy (ACEP), Benjamin Boakye, has challenged any government attempt to pay for Springfield’s oil block at West Cape Three Points, arguing the asset already belongs to the state following the company’s failure to meet contractual obligations.
Boakye says Ghana must not pay a pesewa for the asset, describing the matter as a straightforward enforcement issue rather than a negotiation requiring state compensation. His intervention comes amid revelations that the government plans to take over the block through the Ghana National Petroleum Corporation (GNPC) and its subsidiary Explorco.
The energy policy analyst argues that oil blocks remain the property of the Republic of Ghana, with private operators managing them on the state’s behalf while taking on financial risk. When operators succeed, they share rewards. When they fail, the state reclaims what already belongs to it at no cost, according to Boakye’s interpretation of Ghana’s petroleum contracts.
Springfield has not met required development timelines, which Boakye says is sufficient grounds to trigger an automatic handback of the block without payment. He warns that compensating a failed contractor would set a dangerous precedent allowing companies to stagnate for years and still expect payouts.
“From every objective assessment, acquisition of Springfield’s assets is a bad move. The oil block belongs to the state. Contractors are supposed to take the risk and share benefits only when they succeed. When contractors fail, the state’s duty is to reclaim its asset, not underwrite the losses of private companies,” Boakye stated.
The ACEP director expressed particular concern about reports that GNPC and Explorco are holding constructive discussions with Springfield on a possible takeover, which he fears may include financial compensation. He insists the state should not underwrite losses for a private company that failed to deliver on its commitments.
Boakye also raised questions about previous valuations of the block. Earlier this year, Springfield and Explorco officials attempted to value the asset between $433 million and $1.1 billion, figures he describes as deeply inflated. Although a credible consultant was hired for the valuation, Boakye claims the submitted data was flawed and designed to influence the outcome.
“Garbage in, garbage out,” he said, insisting such valuations cannot justify any state payment. He noted that the Petroleum Commission has already dismissed Springfield’s appraisal claims, further undermining any argument for the asset’s proven commercial value.
The energy analyst called for accountability among technical officials within GNPC and Explorco, arguing that some provide advice aligning more with private interests than national ones. He stressed that public criticism often targets only politicians while key technical officials who enable questionable decisions escape scrutiny.
Boakye emphasized that Ghana’s problem is not the number of oil blocks it holds but the lack of contract enforcement. Many blocks have sat idle for over a decade, he noted, urging the government to simply enforce existing agreements that specify automatic reversion to the state when companies fail to meet obligations.
At a time of economic hardship, Boakye insists Ghana must prioritize value for money and avoid spending scarce public funds on what he describes as trumped-up ventures. The country, he says, is too poor to pay for assets that already belong to the nation.