Kosmos Energy won't sell Ghana Jubilee stake any more

Texas-based Kosmos Energy has rescinded its decision to sell its stake in Ghana’ Jubilee oil field, the AFP reported citing an unnamed official of the company.

According to the report the official indicated that in the view of Kosmos Energy, the best option now is to stay and through the production of oil from the field. Commercial production of oil from the field is due in the last quarter of the year.

Kosmos put up the $4 billion stake in the field out for sale, after the show of interest by some companies, Kosmos finally decided to sell to its Texas neighbour US oil giant ExxonMobil.

But the Ghana government did not approve the deal, but instead accused Kosmos Energy of not playing by the terms of the deal with Ghana and subsequently sought money which it raised from a consortium of banks to purchase the stake.

The Jubilee oil fields is said to be the largest to be discovered in West Africa in the last 10 to 15 years and commercial production of oil is expected to start in June 2010.

Acording to Tullow Oil, the major stakeholders in the field, it has 1.8 billion barrels and has 17 wells.

By Emmanuel K. Dogbevi