International Arbitration Tribunal dismisses $7 billion suit against Ghana, GNPC

The International Arbitration Tribunal has dismissed all claims for damages and compensation in a suit filed against the Government of Ghana and the Ghana National Petroleum Corporation (GNPC) by Eni Ghana Exploration and Production Limited and Vitol Upstream Ghana Limited.

The ruling on July 8, 2024, dismissed the claimants' request to declare that Ghana breached a petroleum agreement by "refusing to withdraw or prevent reliance by third parties on the Unitisation Directives."

The claimants' request for Ghana to notify the High Court, Court of Appeal, and Supreme Court of Ghana that the Unitisation Directives were issued in breach of the Petroleum Agreement was also dismissed.

However, the tribunal found that the Unitisation Directives, "in the circumstances in which they were issued," breached the Petroleum Agreement and that the specific Unitisation Directives were contrary to the applicable regulations, thereby breaching Article 26(2) of the Petroleum Agreement.

The tribunal also affirmed Ghana's right or authority to unitize oil fields to achieve efficient exploitation of the deposits.

Regarding damages, the claimants initially demanded $7 billion, which they later revised downwards to $915 million, in addition to interests. However, the court dismissed all claims for monetary damages or compensation by the claimants and also dismissed all claims against GNPC in their entirety.

On allocating costs, the court ruled that all parties should settle their legal fees.

Ghana was ordered to pay €189,000 to the Stockholm Chamber of Commerce (SCC), representing half of the SCC's charges.

In a statement dated July 8, 2024, Ghana's Attorney-General and Minister for Justice, Godfred Yeboah Dame, noted that the ruling represented a major victory for the government.

He urged the public to disregard what he described as false publications by misguided elements seeking to cast aspersions on the government.

"The Attorney-General has observed a series of false publications by elements who were not party to the proceedings, the Award of which was released within the premises of a confidentiality agreement executed by the parties, but who are on a vile and misguided mission to cast aspersions at the Government of Ghana's recent impeccable record in international arbitration proceedings since assuming office.

The public is hereby entreated to disregard such false publications about the 'ENI/Vitol Award,' which, within the circumstances, represents a major victory for the Republic of Ghana," the statement read.

Mr. Dame affirmed his commitment to defending the state against any attempts to impose unnecessary judgment debts on the country.

Read the full statement below:



GA/SEA

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