UPDATE: No Kosmos Jubilee Stock Sale Until Plan Signed -Sources
May 13 2009 - 11:43AM
Dow Jones News
Kosmos Energy LLC is continuing with plans to sell its stake in
oil fields discovered offshore Ghana, with an asking price of
around $3 billion, but the deal can't close before a development
plan is agreed between the companies involved and Ghana's
government, people familiar with the matter told Dow Jones
Newswires Wednesday.
The development plan for the Jubilee offshore field is expected
to be signed within the next few weeks, said one person familiar
with the matter. "There's no real concern that it won't be
forthcoming," the person said.
Another person familiar with the talks said Kosmos Energy's
intention to sell its stake and the Ghanaian government's financial
difficulties have complicated matters and delayed the signing of
the plan, but neither are insurmountable obstacles.
There are plenty of parties, including major international oil
companies and large Asian oil companies, interested in acquiring
Kosmos' stake in the two offshore blocks - 18% of Deepwater Tano
and 38.875% of West Cape Three Points, the people said.
The exploration and development plan has been led by U.K.-listed
Tullow Oil PLC (TLW.LN). Anadarko Petroleum Corp. (APC) is also a
partner in the fields. Both have preemption rights for Kosmos
stake.
Ghana's government will need to approve the buyer, the people
said.
The blocks contain the Jubilee field with up to 1.8 billion
barrels of oil and the Tweneboa field with up to 1.4 billion
barrels, although it is uncertain if the smaller field contains oil
or gas condensate.
Tullow plans to begin production from Jubilee in the second half
of next year, starting at around 40,000 barrels of oil a day and
eventually building up to 120,000 barrels a day. It plans to drill
a second well to appraise Tweneboa in September.
Dallas-based Kosmos, owned by private-equity firms Blackstone
and Warburg Pincus LLC, has appointed Standard Chartered PLC
(STAN.LN) and Barclays PLC (BCS) to conduct the sale.
Company Web site: www.kosmosenergy.com
-By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317;
james.herron@dowjones.com