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Kevin Okyere’s Springfield triumphs over Italian major ENI in court ruling over disputed oilfield revenues

Okyere welcomed the ruling as a “vindication of Springfield’s position.”



Ghanaian businessman Kevin Okyere. ©Billionaires.Africa

Springfield Exploration and Production Limited (SEP), the exploration company founded by Ghanaian oilman Kevin Okyere, is in a celebratory mood after a commercial court in Ghana ordered that 30 percent of the revenues from the Sankofa oilfield be placed in an escrow account until a deal is reached to unify it with Springfield’s Afina. Sankofa is jointly owned by the Italian energy major ENI SpA and the Vitol Group.

In December 2019, Springfield announced that its oilfield discovery held 640 million barrels of oil, while the whole block had 1.5 billion barrels in total, following its maiden Afina-1 well drilling campaign in the West Cape Three Points (WCTP) Block 2.

In April 2020, the Ghanaian government ordered ENI to merge its Sankofa offshore oil field with Afina, as seismic data generated by the state-owned oil company indicated that Sankofa and Afina shared the same Cenomanian reservoir and had identical fluid properties. Sankofa entered production in 2017 and produces more than 50,000 barrels of oil per day. Ghana’s Petroleum Ministry gave the two companies 120 days to conclude unitization talks and provide the ministry with a unitization and unit operating agreement (UUOA).

A year after the issuance of the directive, ENI and Springfield failed to sign the UUOA to give effect to the directive. Springfield accused ENI of being uncooperative in negotations. Meanwhile, ENI and its JV partner Vitol claimed that there was no basis for Springfield’s Afina discovery to be considered commercially viable and that the ministry’s order was premature. However, ENI maintained that further appraisal of Springfield’s Afina needed to be done to determine its economic viability before a unitization program was embarked upon. Springfield took the matter to court to force the Italian major to comply with the directive.

Springfield claimed in its lawsuit that ENI not only refused to comply with the directive, but continued to produce petroleum from straddling contract areas, including the Afina field, thereby preventing Springfield from participating in revenues accrued from production. A commercial court presided over by Her Ladyship Justice Mariama Sammo partly agreed with Springfield and ordered that, as of June 25, 30 percent of all revenues accruing to ENI and Vitol from exploration and production at Sankofa be preserved in an interest-bearing account until the substantive case is determined.

Springfield CEO Kevin Okyere welcomed the ruling as a “vindication of Springfield’s position.”

Okyere founded Springfield in 2008. The company initially made a name for itself in the oil trading business in West Africa. At one point, Springfield supplied about 12.5 percent of Ghana’s petroleum product requirements and was a major exporter of refined products to neighboring land-locked countries, such as Mali and Burkina Faso. The company also has operations in the provision of oilfield services, supplying vessels, logistics, subsea equipment, oil rigs, marine construction equipment and maintenance services.

In 2012, Springfield commenced its involvement in upstream exploration and production opportunities when the Ghanaian government awarded it WCTP2.

WCTP2 covers 673 square kilometers located in the Tano-Western Basin.

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Financial services firm linked to Egypt’s Sawiris family suffers over $12 million in losses in H1 2022

OFH was founded in 1997 by the late Onsi Sawiris, a member of Egypt’s billionaire Sawiris family.



Naguib Sawiris.

Orascom Financial Holding (OFH), a technology-driven financial services investment company led by the Sawiris family, reported losses in excess of $12 million at the end of the first half of 2022, owing to rising operating expenses.

Founded in 1997 by the late Onsi Sawiris, a member of Egypt’s billionaire Sawiris family, and led by his son Naguib Sawiris, OFH incurred standalone net losses of EGP234.45 million ($12.23 million) in the first half of 2022, compared to net profits of EGP 55.17 million ($2.87 million) in the same period in 2021.

Its financial performance in the six months ending June 30 was hampered by a loss of EGP320.5 million ($16.75 million) in the second quarter. The news comes after the group reported a consolidated net profit of EGP27.43 million ($1.43 million) in the first three months of 2022.

Despite a 30.8-percent increase in revenue from EGP57.9 million ($3.02 million) to EGP75.75 million ($3.96 million), the group was in the red at the end of the first six months of its 2022 fiscal year due to a surge in operating expenses.

This represents a decline from the EGP27.43 million ($1.43 million) in profit reported in the first three months of the year.

Despite its poor financial performance in the first half of 2022, its shares on the Egyptian Stock Exchange were slightly higher at EGP0.19 ($0.0099) per share, up from an opening price of EGP0.18 ($0.0094) per share earlier this month.

OFH’s share price has fallen from EGP0.23 ($0.012) to EGP0.19 ($0.0099) since the start of the year, bringing its market capitalization on the local bourse below EGP1 billion ($52.3 million), while the Sawiris family’s 51.6-percent stake in the group is valued at EGP510 million ($26.66 million).

OFH sold a portion of its holdings in one of its subsidiaries, Beltone Financial Holding, to Chimera Investment, an Abu Dhabi-based firm led by Pakistani businessman Syed Basar Shueb, as part of its efforts to exit its recent loss position.

It is unclear how much of OFH’s 59.22-percent stake was acquired during the share-purchase transaction.

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Aga Khan IV-backed Jubilee to receive $2.27 million from sale of Mauritian insurance subsidiary

Jubilee Holdings is a Kenyan investment holding company.



Aga Khan IV.

Jubilee Holdings is on course to pocket a total of Ksh270 million ($2.26 million) from the sale of a 54.15-percent stake in its Mauritian subsidiary Jubilee Insurance Company of Mauritius Limited to Allianz SE.

Alliansz SE is a German multinational financial services company headquartered in Munich.

The transaction is the fifth to be concluded under a 2020 agreement in which Allianz began the process of purchasing majority stakes in Jubilee’s general insurance units in five countries, including Mauritius.

“We expect to close the Mauritius transaction in September… For Jubilee, the total consideration is Sh270 million,” Nizar Juma, chairman of Jubilee Holdings, said, setting the timeline for the $2.26-million deal with the German multinational insurer.

Jubilee Holdings is a Kenyan investment holding company with active operations and investments in Kenya, Uganda, Tanzania, Burundi, and Mauritius. It owns 88.15 percent of Jubilee Insurance Company of Mauritius Limited.

Shah Karim al-Husayni, also known as Aga Khan IV, is best known for founding Nation Media Group, Africa’s largest independent media organization. Through the Aga Khan Fund for Economic Development, he owns 37.98 percent of Jubilee Holdings and 11.85 percent of its Mauritian subsidiary.

According to BusinessDaily, Allianz will purchase additional shares from Aga Khan IV, who will sell his 11.85-percent stake in the Mauritian subsidiary as part of the deal.

With the deal expected to close next month, Jubilee Holdings will see its ownership interest drop to 34 percent as part of its partial divestiture in its general insurance businesses, which follows the sale of similar assets in Kenya, Uganda, Tanzania, and Burundi.

Over two months ago, Jubilee received Ksh1.4 billion ($11.7 million) from the sale of a majority stake in its Tanzanian general insurance business to Allianz.

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Nigerian billionaire Femi Otedola gains $12.7 million from stake in FBNH

FBNH is one of Nigeria’s largest financial services conglomerates.



Femi Otedola. ©Billionaires.Africa

Nigerian billionaire Femi Otedola’s stake in the country’s oldest commercial bank, First Bank of Nigeria Holdings Plc (FBNH), has risen by more than $12 million in recent months, as shares in the financial services group rebounded strongly after falling below key levels.

According to data tracked by Billionaires.Africa, Otedola’s stake in FBNH has increased in value by N5.34 billion ($12.7 million) in the past 54 days, as investors continued to cherry-pick stakes in the commercial banking group after its price fell below N9 ($0.0214) in June.

FBNH is one of Nigeria’s largest financial services conglomerates. It is the non-operating holding company of First Bank of Nigeria Limited, the country’s oldest commercial bank, with active operations in 10 countries.

According to a flurry of trading updates published on the Nigerian Stock Exchange in June, Otedola sold 664,939,764 shares in four separate transactions, reducing his stake in the Nigerian lender from 2,717,282,140 shares, or 7.57 percent, to 2,052,342,376 shares, or 5.72 percent.

Shares in the financial group have increased by 31 percent since June 21, nearly 54 days ago, from N8.4 ($0.02) to N11 ($0.026) at the time of writing, amid renewed buying interest in the bank’s shares on the local bourse.

As a result of the double-digit increase in the shares of FBNH, the market value of Otedola’s 5.72 percent stake in FBNH has increased by N5.34 billion ($12.73 million), from N17.24 billion ($41.12 million) on June 21 to N22.58 billion ($53.85 million) at the time of writing this report.

The recent gains in his stake follow a dividend of N951.05 million ($2.29 million) from his equity stake in the financial services group that he received earlier this year.

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