Springfield Defends Reputation Against Petraco’s $100 Million Fraud Allegations | LOTAL GHANA

The Ghanaian oil and gas business Springfield Exploration and Production Limited (SEP) has categorically refuted Petraco Oil Business SA's allegations of fraud. Springfield referred to the accusations as "false and unfounded" in a statement issued Monday. Petraco allegedly filed a petition with the Economic and Organised Crime Office (EOCO), which is the source of the allegations.

 

According to Springfield, these charges are a misrepresentation of a business disagreement that is currently being arbitrated. A $100 million facility deal signed on February 7, 2023, is at the heart of the dispute. Petraco gave Springfield an initial $50 million as part of this agreement. Springfield offered to charge 10% of its issued shares as security. Despite only partially disbursing the stipulated funds, Petraco registered its interest over the whole 10%. Springfield contends that this behaviour is in violation of their contract.

 

Springfield stressed that before executing the contract, Petraco carried out extensive due diligence. In-depth legal and technical analyses of Springfield's business practices and assets—particularly its ownership of Ghana's West Cape Three Points Block 2—were part of this process. Springfield gave all the information that was required and cooperated completely. The transaction was not consummated until Petraco was completely satisfied with the results. Springfield maintains that the statements being made at this time are not accurate in light of their business partnership.

 

The business thinks that Petraco's petition and the press attention that followed are attempts to harm its brand. "The accusations are completely without merit and should not be regarded as evidence of criminal conduct," Springfield said. It threatened to file a defamation suit if the untrue allegations persisted. The business is concerned with preserving its reputation and making sure the general public is aware of the actual nature of the conflict. This instance demonstrates the intricacies of business contracts in the oil and gas sector. Springfield is still optimistic that a fair resolution will be reached through the arbitration process.

 

The business is defending itself for the time being, denouncing Petraco's charges and advising the public to ignore false information. Springfield's answer demonstrates its dedication to openness and its resolve to protect its brand from what it perceives to be unfounded criticism.

SOURCE: https://citinewsroom.com/