A dispute over maritime boundaries between Ghana and Ivory Coast is damaging Tullow Oil, which risks postponement of its TEN project in the waters off Ghana's coastline.
The government of Côte d’Ivoire has applied for provisional measures, asking the International Tribunal of the Law of the Sea (ITLOS) to stop Tullow oil and other oil companies from exploring and exploiting oil in the disputed area between Ghana and that country.
The company faces a period of uncertainty pending the court's decision, which will not be reached before the end of April.
Ghana's Minority Spokesman on Energy, K.T. Hammond, said he is confident that "ultimately the Ivorian case will be fruitless", and defined Ivory Coast's suit as "hypocritical" because both sides had signed an exploration agreement on the disputed zone.
He wondered why the Ivorians were “up in arms” when both parties had signed a mutual agreement to explore oil in the disputed area. “Oil exploration started along those areas so many years ago. The Ivorians were involved with their parts of waters and we were dealing with their parts of waters.It is a mutual agreement between the two countries.”
Ghana commenced an arbitration process in 2014 before a Special Chamber of the ITLOS in Hamburg, seeking a declaration that it has not encroached on Ivory Coast’s territorial waters in the exploration of oil after a series of failed negotiation attempts. The company is however confident that Ghana has a strong case.
Aidan Heavey, Chief Executive Officer of Tullow Oil, commented: “Tullow has long had interests in and strong relationships with both Ghana and Côte d'Ivoire and we have conducted our operations in both countries in line with our obligations as a contractor under our Petroleum Agreements and in accordance with international operating standards. Although the arbitration process allows for an application of provisional measures, it is our view that it is in the best interest of all parties that the TEN project continues to move ahead without delay and unencumbered by legal tactics of this nature.”