The International Arbitration Tribunal has issued its final award in the case brought by Eni Ghana Exploration and Production Limited and Vitol Upstream Ghana Limited (collectively referred to as the “Claimants”) against the Government of Ghana and the Ghana National Petroleum Corporation (GNPC).
According to the press statement released on July 8, 2024, the Tribunal dismissed the Claimants’ request for a declaration that Ghana breached the Petroleum Agreement by refusing to withdraw or prevent reliance on the Unitization Directives.
Additionally, the claimants’ request for Ghana to notify the High Court, Court of Appeal, and Supreme Court that the Unitization Directives were issued in breach of the Petroleum Agreement was also dismissed.
However, the Tribunal found that the specific Unitization Directives, as issued, breached the Petroleum Agreement, specifically Article 26(2), as they were contrary to the applicable regulations.
Despite this, the Tribunal upheld Ghana’s right to unite oil fields for efficient exploitation, allowing the potential unitization of the Afina and Sankofa fields or other fields under Ghanaian law and relevant agreements.
The Tribunal denied the Claimants’ claims for monetary damages or compensation, which had been initially set at $7 billion and later revised to $915 million plus interest. All claims against GNPC were also dismissed.
Regarding legal fees and costs, the Tribunal ruled that each party must cover their own expenses. Ghana was ordered to pay €189,000 to the Stockholm Chamber of Commerce, representing half of the SCC’s charges.
The Attorney-General of Ghana has noted a series of false publications from sources not involved in the proceedings, which were confidential.
These publications aim to tarnish the Government of Ghana’s reputation in international arbitration. The public is urged to disregard such false information about the “ENI/Vitol Award,” which is considered a significant victory for Ghana.
The Attorney-General remains committed to defending Ghana’s natural resources and will continue to contest all arbitration claims and actions against the country.
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