In a significant move for the nation’s burgeoning oil industry, Springfield Exploration and Production Limited (Springfield E&P) has announced that it has contracted the Deepsea Bollsta rig to appraise its Afina-1x well in the deep offshore block WCTP-2.
This development marks a crucial step toward potential unitisation of the Afina and Sankofa fields, a process that could substantially boost Ghana’s oil production.
The well test, scheduled to commence in October this year, follows a July 8th 2024 ruling by the International Court of Arbitration. The court had mandated Springfield to conduct additional work to complete the unitisation process, a directive the company claims to have swiftly addressed.
Kevin Okyere, Chief Executive Officer-Springfield stated: “Following that – and to comply with the ruling, Springfield has worked swiftly on securing a rig and all other technical requirements to appraise and do a well-test on the Afina-1x well”.
This move, he stressed, underscores the company’s commitment to complying with international legal standards.
The Deepsea Bollsta rig, a semi-submersible managed by Odfjell Drilling Limited, has been contracted from Northern Ocean Limited (NOL).
The rig recently completed its five-year class survey in Namibia and is now en-route to Ghanaian waters.
This collaboration between Springfield and NOL represents a significant partnership in Ghana’s offshore oil sector, Mr. Okyere added.
Arne Jacobsen, CEO-NOL, expressed enthusiasm about the agreement, saying: “We are excited to announce this strategic alliance agreement with Springfield, which is an important step in the company’s plan to build a solid order backlog”.
He further emphasised the potential for a long-term relationship between NOL and Springfield, stating: “In addition, this alliance creates the foundation for NOL and Springfield to work as partners on delivering first-in-class operation with our tier-1 HE rigs. Springfield is an important operator in Ghana and we are eager to build a long-term relationship with this esteemed company”.
Appraisal of the Afina-1x well is a joint effort involving Springfield E&P, Ghana National Petroleum Company (GNPC) and its exploration wing, GNPC Explorco. This partnership structure has been touted as reflecting Springfield’s as well as government’s strategic involvement in developing the country’s oil resources.
Springfield’s journey in Ghana’s oil sector began with its incorporation in 2008, but it was not until March 2016 that the company was awarded the WCTP-2 block. The Afina-1 well, drilled in October 2019, made significant discoveries at a water depth of 1030 metres.
These findings more than doubled Springfield’s proven oil reserves on the block to 1.5 billion barrels and added almost 1 trillion cubic feet of gas to existing discoveries.
If successful, this appraisal could position Springfield as the first independent African company to operate and produce oil in deep water.
Springfield’s CEO highlighted the potential impact of this achievement, stating; “I am hoping that our tenacity and persistence will inspire Ghanaians and the youth across Africa to know that they can all dare to dream and achieve anything they want”.
Analysts have said the broader implications of this project for the domestic economy are substantial. Increased oil production could provide a significant boost to government revenues and potentially stimulate related industries.
However, the complex nature of deep-water operations presents both opportunities and challenges.
source: B&FT