Afreximbank, a pan-African financial institution, has agreed to provide a $750 million facility to Springfield Exploration and Production Limited (SEP), a Ghanaian-owned independent energy company. The deal was signed at the Afreximbank 30th Annual General Meetings in Accra, Ghana.
The facility will support the development of the West Cape Three Points Block 2, where SEP operates and holds a majority interest. The block contains the Afina-Sankofa field, which was discovered by SEP in October 2019. The discovery added 1.5 billion barrels of oil and gas and almost one trillion cubic feet (1TCF) of gas to SEP’s proven reserves. The block also has an estimated potential of over 3 billion barrels of oil and gas in multiple leads and prospects.
The deal is expected to revitalize the oil and gas industry in Ghana, which has been facing challenges due to the global shift away from fossil fuels. It will also encourage more investments in exploration and production activities, as well as increase revenues for the country. Moreover, it will advance Ghana’s agenda of creating a more inclusive and locally-owned economy.
Kevin Okyere, Chief Executive Officer of SEP, said: “This is a great day for African companies in building an alliance with a great African financial institution like Afreximbank.” He added: “This facility will enable us to add tremendous value to our oil block and we are very excited about the opportunity.”
SEP was incorporated in March 2008 to pursue exploration and production opportunities in Ghana and the West African sub-region. It was awarded the West Cape Three Points Block 2 by the Government of Ghana in March 2016. It is the first wholly Ghanaian owned independent entity to operate an oil and gas asset in Ghana.
Afreximbank is a multilateral financial institution that finances and promotes intra-and extra-African trade. It offers innovative solutions that support the transformation of Africa’s trade, industrialization, and regional integration.