The
International
Arbitration
Tribunal
in
the
Eni
&
Vitol
versus
Ghana
and
Ghana
National
Petroleum
Corporation
(GNPC)
arbitration
has
issued
its
final
award,
bringing
a
positive
outcome
for
Ghana.
The
Tribunal
denied
the
Claimants,
Eni
and
Vitol,
their
monetary
damages,
which
initially
stood
at
$7
billion
but
were
later
reduced
to
$915
million
plus
interest
by
the
end
of
the
proceedings.
The
Tribunal
dismissed
all
claims
against
the
GNPC
entirely.
Additionally,
the
Tribunal
rejected
the
Claimants’
request
to
declare
that
Ghana
breached
the
Petroleum
Agreement
by
“refusing
to
withdraw
or
prevent
reliance
by
third
parties
on
the
Unitisation
Directives.”
The
Tribunal
also
dismissed
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.
However,
the
Tribunal
did
find
that
“in
the
circumstances
in
which
they
were
issued,”
the
Unitisation
Directives
breached
the
Petroleum
Agreement.
Specifically,
the
unitisation
was
contrary
to
the
applicable
regulations,
thereby
breaching
Article
26(2)
of
the
Petroleum
Agreement.
Despite
this,
the
Tribunal
affirmed
Ghana’s
sovereign
right
to
unitise
oil
fields
to
achieve
efficient
exploitation
of
the
deposits.
Regarding
the
allocation
of
fees
and
costs,
the
Tribunal
determined
that
since
both
Parties
had
prevailed
in
some
respects,
each
would
be
required
to
pay
their
own
legal
fees
and
costs.
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
the
claims
against
the
Republic,
he
was
pleased
with
the
Tribunal’s
rejection
of
the
claims
against
Ghana
and
the
complete
dismissal
of
all
claims
for
monetary
compensation
made
by
Eni/Vitol
against
Ghana.
This
decision
saves
Ghana
from
a
significant
financial
obligation.
Attorney-General
Dame
also
welcomed
the
Tribunal’s
affirmation
of
Ghana’s
sovereign
right
to
unitise
its
oil
fields.
He
emphasized
that
while
the
unitisation
principle
itself
is
not
unlawful,
the
manner
and
circumstances
under
which
it
is
carried
out
must
comply
with
applicable
regulations,
a
point
the
Tribunal
found
lacking
in
this
dispute.
Looking
ahead,
the
Attorney-General
stressed
the
importance
of
determining
the
best
way
forward
for
all
parties
involved.
He
reiterated
the
Office’s
commitment
to
vigorously
contesting
all
international
arbitration
claims
aimed
at
imposing
judgment
debt
on
the
country.
Recent
victories
against
Beijing
Everyway,
Cassius
Mining,
and
Messrs
Micheletti
Company
Limited
underscore
this
resolve.
The
Tribunal’s
ruling
marks
a
significant
victory
for
Ghana,
highlighting
the
importance
of
adherence
to
regulatory
frameworks
while
affirming
the
country’s
rights
over
its
natural
resources.