By OGJ editors
HOUSTON, Oct. 12 -- ExxonMobil Corp. reportedly has agreed to buy a stake in Jubilee oil field off Ghana from privately owned Kosmos Energy LLC, several media organizations have said. The Financial Times reported that the pending transaction was worth $4 billion.
“ExxonMobil routinely evaluates potential development opportunities around the world. We do not comment on the details of commercial discussions or opportunities,” Patrick McGinn, ExxonMobil spokesman for upstream media relations, told OGJ in an e-mail.
A sale would require approval from Ghana’s government, legal experts have said. Tullow Oil PLC operates Jubilee and owns 34.7%. Kosmos owns 23.49%. Other partners include Anadarko Petroleum Corp. 23.49% and Ghana National Petroleum Corp. 13.75%.
ExxonMobil already holds some of the largest acreages in West Africa including operations in Angola, Nigeria, Chad, Equatorial Guinea, and Niger. Ghana is part of an emerging play in northern West Africa. The play includes Sierra Leone (OGJ, Sept. 28, 2009, p. 36.)
Raymond James & Associates analysts said there do not appear to be any proved reserves associated with this deal, but the unbooked resource potential of Jubilee is estimated at 600-1,800 MMboe gross.
“This is Exxon's first entry into Ghana, and it has plenty of cash on hand to do so—$16 billion as of second-quarter 2009,” RJA said. “The major’s move signals growing interest in the area and bodes well for future development.”
Kosmos is led by James Musselman, formerly Triton Energy Ltd. chief executive officer. Triton discovered oil off Equatorial Guinea before Triton was sold in 2001 to Amerada Hess Corp., which is now Hess Corp.