BP drops plans to buy Kosmos’s Ghana stake
BP, the second biggest oil company in Europe is said to have dropped plans to buy the stake of Texas-based Kosmos Energy in the largest oil field in Ghana, the Jubilee oil field, Bloomberg has reported citing two unnamed people familiar with the matter.
According to the report, the people who declined to be identified because the negotiations were confidential, said, talks between BP and the Ghana National Petroleum Corporation (GNPC) over a joint offer for Kosmos’s assets broke down in recent weeks.
According to one of the sources, BP gave its decision to focus on other projects such as the Gulf of Mexico as the reason for dropping the plans.
The report indicated that BP’s withdrawal may pave the way for ExxonMobil’s planned purchase of Kosmos’s Jubilee stake for at least $4 billion. With potential resources of 1.8 billion barrels, Jubilee has attracted attention from Chinese producers as well as BP as Ghana prepares to become one of Africa’s newest oil exporters this year.
Both BP and ExxonMobil officials contacted declined to comment, the report said.
When Kosmos Energy decided to sell its stake in the Jubilee field early in 2009, BP was one of the companies that showed interest in buying the stake by appointing Goldman Sachs as advisors in October 2009.
By Emmanuel K. Dogbevi
BP, the second largest oil company is said to have dropped plans to buy the stake of Texas-based Kosmos Energy in the largest oil field in Ghana, the Jubilee oil field, Bloomberg has reported citing two unnamed people familiar with the matter.
According to the report, the people who declined to be identified because the negotiations were confidential said, talks between BP and the Ghana National Petroleum Corporation (GNPC) over a joint offer for Kosmos’s assets broke down in recent weeks.
According to one of the sources, BP gave its decision to focus on other projects such as the Gulf of Mexico as the reason for dropping the plans.
The report indicated that BP’s withdrawal may pave the way for ExxonMobil’s planned purchase of Kosmos’s Jubilee stake for at least $4 billion. With potential resources of 1.8 billion barrels, Jubilee has attracted attention from Chinese producers as well as BP as Ghana prepares to become one of Africa’s newest oil exporters this year.
Both BP and ExxonMobil officials contacted declined to comment, the report said.
When Kosmos Energy decided to sell its stake in the Jubilee field early in 2009, BP was one of the companies that showed interest in buying the stake by appointing Godlman Sachs as advisors in October 2009.
By Emmanuel K. Dogbevi