Indian oil company shows interest in Kosmos Energy’s stake in Ghana

The number of oil and gas companies showing interest in the 30% stake of Kosmos Energy in Ghana’s Jubilee oil field is growing. The latest to show interest is the Indian state-run Oil & Natural Gas Corporation (ONGC). Even though it has been cited in earlier reports to be one of the interested parties in the stake, it has now openly indicated its interest.

The Economic Times of India reports that ONGC has joined the race to buy a 30% share stake in Jubilee oil fields in Ghana from US-based Kosmos Energy, quoting a person privy to the decision.

According to the report, ONGC has visited the data room that Kosmos Energy opened for potential bidders.

Quoting another person close to the deal it said ONGC is likely to team up with a foreign company to put in a bid, which could be in the range of $3-4 billion.

Meanwhile, Ghana’s state-owned oil company, the Ghana National Petroleum Corporation which has a 10% share stake in the Jubilee oil field has also indicated its interest to buy the Kosmos stake. Ghana’s deputy Energy Minister, Kwabena Donkor was quoted by the Bloomberg news service as saying, “if they sell, the national oil company will buy their stake.”

Other global oil giants have also expressed interest in buying the 30% stake of Kosmos Energy in the Jubilee oil field.

The China National Offshore Oil Company (CNOOC) reportedly, is making a bid of about $4 billion for the stake in the Jubilee fields of Kosmos Energy.

Royal Dutch Shell has also been reported to have looked into the Kosmos Energy data room and showed interest in buying the stake.

Other companies that have been cited to be interested in the stake include, Chevron Corp., ExxonMobil Corp., and Italy’s Eni SpA.

Kosmos Energy has appointed Standard Chartered and Barclarys as its advisors for the sale

Ghana is set to become one of Africa’s newest oil exporters in June 2010 when production begins at the offshore Jubilee field, which was discovered in June 2007 and has potential resources of as much as 1.8 billion barrels, according to Tullow.

The Jubilee oil field has 17 wells and it is said to be the largest to be discovered in West Africa in the last 10 to 15 years.

Meanwhile, the Bloomberg news service has reported Tuesday July 14, 2009  that Kosmos Energy has signed agreements to borrow $750 million to fund its project in Ghana, without saying where the money was coming from.

By Emmanuel K. Dogbevi