The International Arbitration Tribunal has issued a final ruling in the case of Eni & Vitol versus Ghana and the Ghana National Petroleum Corporation (GNPC), resulting in a favorable outcome for Ghana.
The Tribunal denied Eni and Vitol their monetary damages claims, which initially stood at $7 billion and were later reduced to $915 million plus interest by the end of the proceedings. Additionally, all claims against GNPC were entirely dismissed.
The Tribunal rejected the Claimants’ assertion that Ghana breached the Petroleum Agreement by refusing to withdraw or prevent reliance by third parties on the Unitisation Directives.
The Tribunal also dismissed the Claimants’ request for Ghana to notify its High Court, Court of Appeal, and Supreme Court that the Unitisation Directives were issued in breach of the Petroleum Agreement.
However, the Tribunal found that “in the circumstances in which they were issued,” the Unitisation Directives breached the Petroleum Agreement, specifically contravening Article 26(2) of the Agreement.
Despite this, the Tribunal affirmed Ghana’s sovereign right to unitise oil fields for efficient exploitation of the deposits.
Regarding the allocation of fees and costs, the Tribunal determined that since both parties prevailed in some respects, each would be required to pay their own legal fees and costs.
Attorney-General and Minister of Justice, Godfred Yeboah Dame, expressed a mix of satisfaction and caution in reaction to the award.
While he would have preferred a complete dismissal of the claims against the Republic, he was pleased with the rejection of claims against Ghana and the complete dismissal of all claims for monetary compensation made by Eni/Vitol against Ghana, saving the country from significant financial obligations.
Attorney-General Dame welcomed the Tribunal’s affirmation of Ghana’s sovereign right to unitise its oil fields.
Mr. Dame emphasized that while the unitisation principle itself is not unlawful, the manner and circumstances under which it is carried out must comply with applicable regulations, a point found lacking in this dispute.
Looking ahead, he stressed the importance of determining the best way forward for all parties involved and reiterated the Office’s commitment to vigorously contesting all international arbitration claims aimed at imposing judgment debt on the country.
Recent victories against Beijing Everyway, Cassius Mining, and Messrs Micheletti Company Limited underscore this resolve.
The Tribunal’s ruling marks a significant victory for Ghana, highlighting the importance of adherence to regulatory frameworks while affirming the country’s rights over its natural resources.
