Kosmos pulls out of $4B Jubilee deal with ExxonMobil offshore Ghana

Source: Kosmos

Kosmos Energy announced that the company’s Share Purchase Agreement with ExxonMobil related to the acquisition of its Ghana business has been terminated. 

The $4 billion deal was for a stake in the massive Jubilee oil field offshore Ghana, which is operated by Kosmos Energy. The Ghanan government did not approve the agreement.

"First oil from the Jubilee field phase one development is fast approaching,” said Brian Maxted, COO of Kosmos. “Moreover, we are very encouraged by our recent exploration results, other discoveries we are appraising, and additional developments being planned. We will continue to work with our block partners and the Government of Ghana to develop these resources that we believe offer multiple near-term opportunities to significantly enhance the value of these world-class assets." 

Oil production from the Jubilee Field phase one development is on schedule to begin in the late fourth quarter 2010; and is expected to increase to a production plateau of 120,000 barrels of oil per day during the first half of 2011. 

The floating production, storage and offloading vessel (FPSO) is now in Ghana with final installation, hook-up and commissioning under way. 

On the exploration front, drilling continues on the side track of the Owo-1 discovery well on the Deepwater Tano Block, which will 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. The company also holds an 18% interest in the Deepwater Tano block.



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