According to a report by MyJoyOnline, Ghana’s new government has taken a step to avoid further embarrassment by canceling a controversial order from the previous administration. The order, issued by the former Energy Minister and Vice Presidential Candidate of the NPP, had demanded that two international oil companies, Eni and Vitol, merge their oil field with a smaller field owned by a Ghanaian company, Springfield. Under the plan, Springfield would have taken a 55% share of the combined field.
This idea was seen as unfair and unrealistic. The international companies had already invested over 6billion∗∗intheiroilfield,withsomeguaranteesfromthe∗∗WorldBank∗∗andtheGhanaiangovernment.Ontheotherhand,Springfield’sfieldhadonlyseenabout∗∗6billion∗∗intheiroilfield,withsomeguaranteesfromthe∗∗WorldBank∗∗andtheGhanaiangovernment.Ontheotherhand,Springfield’sfieldhadonlyseenabout∗∗100 million in investment, and there were doubts about whether it even had enough oil to be profitable. Forcing a merger would have meant taking wealth from one company and giving it to another, while also reducing Ghana’s own share in the oil field.
As reported by MyJoyOnline, the new government’s decision to cancel this order is a positive move. It allows for a more sensible discussion about how to support local companies like Springfield in the oil and gas industry. The government can now focus on creating policies that help local businesses without breaking international rules or scaring away foreign investors.
It’s important to note that companies like Springfield often rely on international investors for funding. For example, Springfield raised money from investors in Dubai, Switzerland, and Russia. This shows that while supporting local businesses is important, Ghana must also maintain a good relationship with the global business community.
The previous government’s approach caused unnecessary problems and delays. If they had listened to advice and considered the facts, this situation might have been avoided. Springfield could have explored better options instead of being stuck in a dispute.
Now, with the order canceled, Ghana has a chance to move forward. The focus should be on creating a fair and attractive environment for both local and international investors. This way, companies like Springfield can grow without harming the country’s reputation or economy.
As MyJoyOnline highlights, the days of pure nationalism in managing natural resources are over. Smart countries balance national interests with international business practices. Ghana must do the same to succeed in the global market.
Let’s wait and see how things develop in the coming weeks. For more details, you can read the full analysis on MyJoyOnline.
This decision is a step in the right direction, and it shows that Ghana is learning from past mistakes to build a better future.
Credit: myjoyonline.com