Ghanaian international oil and gas company, Springfield Exploration and Production Limited (SEP), has secured a $750 million facility from the African Export-Import Bank (Afreximbank).
This is a major breakthrough for the upstream oil and gas company to increase production for national development.
In an interview with the Daily Graphic yesterday after signing the deal, the Head of Communication of SEP, Kennedy Noonoo, said Afreximbank signed the loan agreement with Springfield at the former’s 30th Annual General Meeting in Accra to beef up the independent African energy company’s financial reserve.
Agreement
The Director, Export Development of Afreximbank, Oluranti Doherty, signed on behalf of the African Union’s Development Bank, while the Chief Finance Officer of Springfield, George Owodo, signed for the company.
Mr Noonoo said the facility would positively impact the development of the West Cape Three Points Block Two, particularly the unitised Afina-Sankofa field, which would boost the upstream oil and gas space.
The Afina-One well made two discoveries in October 2019.
The field contains gas, critical and light oil at a water depth of 1,030 metres drilled at a depth of 4,085 metres.
The field more than doubled Springfield’s proven oil reserves to 1.5 billion barrels and added almost one trillion cubic feet (TCF) of gas to the existing discoveries.
The current undiscovered potential of the Block is estimated at over three billion barrels of oil and gas in multiple leads and prospects within multiple proven reservoir units.
Significance
The Chief Executive Officer (CEO) of Springfield, Kevin Okyere, said: “The facility will enable us to add more value to our assets.
It is a great day for African companies in building an alliance with a great African financial institution such as Afreximbank.
“These are the kinds of cooperation we want to see on the continent to propel growth and development,” he added.
Incorporation
Springfield Exploration and Production was incorporated in March 2008 to pursue exploration and production opportunities in the country and the West African sub-region.
Although the company began the processes to acquire a block in 2012, the government finally gave it the opportunity in March 2016.
Springfield is currently the lead operator with majority interest in the West Cape Three Points Block Two, with the national oil company, Ghana National Petroleum Corporation (GNPC), and its exploration company, EXPLORCO, holding the remaining interest.
The African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-African and extra-African trade.
Afreximbank deploys innovative structures to deliver financing solutions which support the transformation of the structure of Africa’s trade, accelerating industrialisation and intra-regional trade, thereby boosting economic expansion in Africa.
SOURCE: GraphicOnline
