The International Arbitration Tribunal has delivered a final verdict in the high-profile case involving Eni & Vitol versus Ghana and the Ghana National Petroleum Corporation (GNPC), marking a significant legal victory for Ghana.
The Tribunal’s decision, which favors Ghana, denies Eni and Vitol their claims for monetary damages and dismisses all allegations against GNPC.
Initially, Eni and Vitol sought damages amounting to $7 billion, a figure that was later reduced to $915 million plus interest as proceedings progressed. However, the Tribunal’s final award denied these monetary claims entirely, providing a substantial relief to Ghana from a potential financial burden.
In addition to rejecting the monetary claims, the Tribunal dismissed all claims against GNPC. The Tribunal also refused the Claimants’ request to declare that Ghana had breached the Petroleum Agreement by not withdrawing or preventing reliance on the Unitisation Directives by third parties.
Furthermore, the Tribunal rejected the Claimants’ demand for Ghana to inform the High Court, Court of Appeal, and Supreme Court that the Unitisation Directives were issued in violation of the Petroleum Agreement.
Nonetheless, the Tribunal acknowledged that the Unitisation Directives, “in the circumstances in which they were issued,” did breach the Petroleum Agreement.
Specifically, the directives were found to be contrary to applicable regulations, violating Article 26(2) of the Agreement. Despite this, the Tribunal upheld Ghana’s sovereign right to unitise oil fields to ensure efficient exploitation of oil deposits.
Regarding legal fees and costs, the Tribunal decided that since both parties had partial victories, each would bear their own legal expenses.
Reacting to the award, Attorney-General and Minister of Justice Godfred Yeboah Dame expressed a mix of satisfaction and caution.
He noted that while he would have preferred a complete dismissal of all claims against Ghana, he was pleased with the Tribunal’s rejection of the claims and the dismissal of all monetary compensation demands by Eni and Vitol. This outcome spares Ghana a significant financial obligation.
Attorney-General Dame also welcomed the Tribunal’s affirmation of Ghana’s sovereign right to unitise its oil fields. He stressed that while the principle of unitisation itself is not unlawful, the process must comply with applicable regulations, a point the Tribunal found lacking in this dispute.
Looking forward, the Attorney-General emphasized the importance of determining the best path forward for all parties involved.
He reaffirmed his office’s commitment to vigorously contesting all international arbitration claims aimed at imposing judgment debts on the country. Recent victories against Beijing Everyway, Cassius Mining, and Messrs Micheletti Company Limited highlight this resolve.