The International Court of Arbitration has delivered its final award in the case of Eni & Vitol v. Ghana and the Ghana National Petroleum Corporation (GNPC), finding in Ghana’s favour.
The court denied Eni and Vitol damages, initially worth $7 billion, but later reduced to $915 million plus interest by the end of the case.
All claims against GNPC were dismissed in their entirety.
Additionally, the court rejected the plaintiffs’ request to declare that Ghana had breached the Petroleum Agreement by “refusing to revoke the Integration Directive or prevent reliance by third parties.”
The court also rejected the plaintiffs’ request for Ghana to notify the High Court, Court of Appeal and Supreme Court of Ghana that the Integrated Directive was issued in breach of the Petroleum Agreement.
However, the arbitral tribunal found that the Integration Directive “in the circumstances in which it was issued” violated the Petroleum Agreement.
Specifically, the consolidation is contrary to applicable regulations and violates Article 26(2) of the Petroleum Agreement.
Nonetheless, the Court recognised Ghana’s sovereign right to consolidate its oil fields and achieve efficient exploitation of the deposits.
With regard to the allocation of fees and costs, the court decided that because both parties prevailed on several points, each party should pay its own legal fees and costs.
Reacting to the ruling, Attorney-General and Minister of Justice, Godfred Yeboah Dame, expressed mixed feelings of satisfaction and alarm.
He said he had hoped that the claims against the Republic would be dismissed in their entirety but was pleased that the Court had dismissed the claims against Ghana and dismissed all claims for financial compensation made by Eni/Vitol against Ghana.
This decision will relieve Ghana from a huge financial burden.
Attorney General Dame also welcomed the Court’s recognition of Ghana’s sovereign right to consolidate its oil fields.
He stressed that while the principle of unitization is not illegal in itself, the manner and circumstances in which it is implemented must comply with applicable regulations, which the Court found to be lacking in this dispute.
Looking ahead, the Attorney General stressed the importance of determining the best way forward for all involved.
He reiterated the Agency’s determination to vigorously fight all international arbitration claims that seek to impose judgment debts on the country.
Recent victories against Beijing Everyway, Caxias Mining and Micheletti underscore this determination.
The Court’s ruling is a major victory for Ghana and underscores the importance of adhering to regulatory frameworks while recognising the country’s rights over its natural resources.
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