Kosmos Energy cancels sale deal of Ghana Jubilee oil field to ExxonMobil

Kosmos Energy says it has cancelled its sale deal of Ghana’s Jubilee oil field to ExxonMobil.

The protracted sale deal was cancelled today, according to a report by the Wall Street Journal.

According to the report Texas-based Kosmos said it was now focused on developing the huge Jubilee oil field and appraising new offshore discoveries with partners such as Anadarko Petroleum Corp. and Tullow Oil PLC.

The US firm had put its 30.875% stake in the West Cape Three Points block up for sale last year. And it offered to sell to its Texas neighbour ExxonMobil. But the Ghana government blocked the deal, refusing to give its endorsement for the deal to close, citing a breach of the country’s petroleum agreement. Ghana government officials blamed Kosmos of acting illegally by secretly opening its data room to ExxonMobil without first giving the other partners the first option to buy.

The matter had dragged on since then. But the government indicated last week that it will make its decision on the matter known soon, promising to protect the national interest.

The Jubilee oil field is the largest oil field to be discovered in West Africa in the last 10 to 15 years. And According to Tullow Oil, the major stakeholders in the field, it contains 1.5 million barrels of oil and has 17 wells. Tullow says commercial production is expected to begin in November or December 2010.

By Emmanuel K. Dogbevi

Leave A Reply

Your email address will not be published.