Mikaila Adams
OGFJ, Associate Editor
After the deal met with resistance, US-based Kosmos Energy and ExxonMobil cancelled a Share Purchase Agreement that would have resulted in ExxonMobil acquiring nearly US$4 billion in Ghana assets held in part by Kosmos.
According to the Energy Ministry of Ghana, the major challenges regarding the upstream petroleum sector is sustainably developing the industry while judiciously managing the revenue received from the industry in a way that “will ensure maximum benefits to the people of Ghana.”
Ghana National Petroleum Corp., the state oil company, opposed the transaction on the grounds that it violated the country's laws in that it was not offered first right of refusal.
In a press release, Brian F. Maxted, Kosmos’ COO, said that the company “will continue to work with our block partners and the Government of Ghana to develop these resources,” noting that, "first oil from the Jubilee Field phase one development is fast approaching.”
Read about the rise of Kosmos Energy from start up to organization to E&P entity.
Oil production from the Jubilee Field phase one development is expected to start at the tail-end of 2010 and reach a production plateau of 120,000 barrels of oil per day during the first half of 2011.
On the Deepwater Tano Block, drilling continues on the side track of the Owo-1 discovery well to gather additional geological data and test a lower objective. The Oninya exploration prospect, also on the Deepwater Tano Block, will be drilled immediately following completion of the Owo-1 side track.
"Our focus is to ensure that Kosmos is well-positioned operationally and financially to fulfill its roles as operator of the West Cape Three Points Block, technical operator for development of the Jubilee Field, and partner in the Deepwater Tano Block," Maxted added.
Kosmos Energy is the operator of the West Cape Three Points Block in which it holds a 30.875% interest. Partners in the block are Anadarko (30.875% working interest), Tullow Oil plc (22.896% working interest), Ghana National Petroleum Corp. (10% participating interest), E.O. Group (3.5% working interest), and Sabre Oil and Gas Ltd. (1.854% working interest).
The company also holds an 18% interest in the Deepwater Tano block. Partners in the block are Tullow Oil plc (49.95% working interest), Anadarko (18% working interest), Ghana National Petroleum Corp. (10% participating interest), and Sabre Oil and Gas Ltd. (4.05% working interest).
Kosmos Energy, a privately held international oil exploration and production company, is backed by private equity investors Warburg Pincus and Blackstone Capital Partners.
In July, the company signed a $750 financing agreement to help fund development of the Jubilee field with various partners including Standard Chartered Bank, BNP Paribas SA, Société Générale, International Finance Corp., Absa Bank Ltd., Africa Finance Corp., Calyon and Cordiant Emerging Loan Fund III LP. The debt was divided among a senior facility of $550 million, a junior facility of $100 million, and facilities of $100 million from the International Finance Corp. (IFC).