MODEC cancelled $225m political risk insurance on FPSO – MIGA

The Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group says MODEC last year cancelled the $225 million political risk insurance that it had provided for the Floating Production Storage Offloading (FPSO) vessel being used for oil production on Ghana’s Jubilee oil field.

In a swift response to our story on the sale of the FPSO published last Friday January 6, 2012, MIGA sent us an email today Monday January 9, 2012 saying MODEC, the Japanese registered company and managers of the FPSO cancelled the contract last year, 2011.

MODEC has sold the FPSO, named Kwame Nkrumah to the Jubilee partners, made up of Tullow Oil, Kosmos Energy, GNPC, Sabre Oil and Anadarko. The Reuters news service citing a source close to the deal put the value at $750 million.

By Emmanuel K. Dogbevi

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