UPDATE: Kosmos' Ghana Oil Field Stake Sale Proceeding-Sources
July 15 2009 - 7:37AM
Dow Jones News
Private equity backed Kosmos Energy is proceeding with plans to
sell its stake in the large Jubilee oil field offshore Ghana
despite securing $750 million in loans Tuesday to fund development,
two people familiar with the matter told Dow Jones Newswires
Wednesday.
Jubilee, with resources of around 1.2 billion barrels of oil
equivalent, could be the first of a number of discoveries that make
the waters of Ghana and Ivory Coast a significant new oil province,
say analysts.
A large number of major international and state-owned oil and
gas companies are among potential buyers of this strategic
asset,and Kosmos hopes to have a shortlist of bidders for their
stake in the field ready by Friday, one of the people said.
Kosmos secured the $750 million debt facility Tuesday from a
consortium of eight banks, which gives it "the financial resources
necessary to fully develop the first phase of the Jubilee oil
field," said W. Greg Dunlevy, Kosmos executive vice president and
chief financial officer.
These funds are partly to cover costs already incurred in the
development of Jubilee and partly "to show the world they don't
have to sell," the other person said. The economic climate remains
difficult and it's not possible to have any certainty that big
deals like this will go through, the person added.
The relationship between Kosmos and the Ghanaian government has
been prickly in recent times, but formal approval of the
development plan submitted by Kosmos' partners in Jubilee, Tullow
Oil PLC (TLW.LN) and Anadarko Petroleum Corp. (APC), Wednesday is a
sign that those difficulties have been smoothed over, the first
person said.
Jubilee's operator, Tullow, plans to produce first oil in the
second half of 2010.
Company Web site: http://www.kosmosenergy.com
-By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317;
james.herron@dowjones.com