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Group calls on banks to stop funding Kosmos Energy

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A group calling itself the Western Sahara Resource Watch (WSRW) says it has asked international banks to stop further funding of Texas-based energy company, Kosmos Energy.

According to the group their action is in reaction to Kosmos Energy’s exploration activities offshore the disputed Western Sahara.

In a press release signed and issued by its leader Maiju Kaipiainen, the group says “Should Morocco – through its US partner Kosmos Energy – discover oil offshore Western Sahara, it will undermine the UN peace process in the territory, and risk destabilising the fragile ceasefire in the region.”

The group argues that based on international law, reflected in a 2002 legal opinion for the UN Security Council, “it is clear that Kosmos Energy’s oil search in the territory is illegal.”

The group also referred to funding that Kosmos Energy was able to raise for its Ghana operations

It said to develop the Ghana block, Kosmos earlier this year increased its project finance debt facilities by US$350 million, through agreements with Standard Chartered Bank, BNP Paribas SA, Société Generale, Crédit Agricole Corporate & Investment Bank, Crédit Suisse International, Citibank, N.A., Natixis, HSBC Bank and FirstRand Bank Limited.

Western Sahara is deputed territory in North Africa.

Kosmos Energy is one of the stakeholders in Ghana’s Jubilee oil field due to start commercial production of  oil December 15, 2010.

We were unable to reach Kosmos Energy for their comments due to time difference between Ghana and the US.

By Emmanuel K. Dogbevi

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